Posted on 10/07/2011 3:50:56 PM PDT by Kaslin
As Post Office faces insolvency, Congress misses the message
As every American knows, Benjamin Franklin invented pretty much everything that matters. Except one thing — the Internet.
Al Gore got there first.
And now the cascading effects of that Internet technology, as exciting and beneficial as they are in many ways, are also threatening the fiscal existence of one of the historically most important institutions in United States life, the Post Office.
In a revolutionary time when brothers might move 40 miles from home and never see each other again, the Post Office provided the quilled link to help hold a new country together while it became a nation.
When postal service came to the American countryside early last century, it revolutionized life for the majority of Americans who lived there then. Without the Post Office, among many other things, there would have been no mail order industry, no Sears Roebuck — and no catalogue to hang in the outhouse.
There was a time when the postman (and he was a man) delivered mail to every home at least twice a day, Sundays too if you paid a little extra for Special Delivery.
But just as the telegraph and railroads killed the Pony Express, Americans now have BlackBerries and all these i-things to communicate with anyone they please anywhere at all at any time they please, instantly and at miniscule visible cost.
(Excerpt) Read more at investors.com ...
At one time, the U.S. Post Office was the only section of the American government that actually made money and put its profits in the general fund. Then the government totally shafted the entire operation. Thus what we have today is the near final result.
Maybe, the U.S. Postal Service, as it is called, will have to compete with FedEx, UPS, DHL, etc. This will be real fun to watch — a government operation that actually will have to demonstrate accountability and generate a profit (HAR!)
While such an outlandish idea of a competent and responsible section of the federal government might actually someday exist, Oh, I forgot. How many jobs does the USPS represent? Hmmm? Are we looking at another stimulus bailout from Obama and the Politburo?
This could get real entertaining.
I depend on the USPS for bill paying. I suppose if they go one of the others will pick up some kind of mail service.
we just received the county tax bill for a home 10 blocks away from us—typical of the u.s.p.s.
You know it was only a few years ago that the US Post Office was in the black. Something went terrible wrong
That reminds me, we haven’t even gotten ours yet, which we normally get in August or September. It is due the end of January. But I don’t think it is the post office’s fault.
We need the new Cain plan 999 Fire 9 % of their employees— reduce their salaries 9% and give then til a 9 count to get their butts movin!!
Something went wrong all right.
One word: Unions
Something went wrong all right.
One word: Unions
And I had better stop drinking. I’m repeating myself again.
IF the USPS was a real business, its executives would have seen the email/internet/texting/instant messaging threat coming and made adjustments to their business plan to survive the changes.
But they did not. Now it’s panic time.
I suggest:
- Restrict door-to-door deliveries to Mon, Wed, Fri.
- Quickly close the 3500 post offices they have been considering for closure.
- Close 1/2 of the remaining post offices on Tuesday. Close the other 1/2 on Thursdays.
- Lay off at least 35% of their work force.
That pretty much set the stage for the disaster.
However, at the same time Congress levied a $5.8 billion per year tax on USPS to pay for FUTURE RETIRED EMPLOYEES' FUTURE HEALTH INSURANCE.
That is, future payments for health insurance for future retirees. It's not for current payments for health insurance for current retirees.
Some folks who've looked at this thing closely from an actuarial standpoint say it's targeting potential costs 75 years from now.
That, BTW, was about an 8% tax. Obama has proposed something comparable for the investor class. I suppose he saw how effective that sort of thing is on destroying even government owned companies.
Last month USPS had a 3% mail volume increase ~ which is UNHEARD OF! That is huge.
What is most interesting about that jump is that it occurred mostly in a new sort of mail ~ ADVERTISING that targets products advertised or featured on the Internet. These follow up ads appear to successfully attract real customers to buy stuff.
Pull the subsidies to the Dept of Energy, Education, EPA, Housing, foo stams, none of which are in the Constitution and fund the Post Office, WHICH IS, remember?!
That should whack more than $10 billion per year out of operating costs.
With mail volumes down only 20%, a 35% cut in the work force might well be inappropriate.
All cuts to services should serve the purpose of providing all customers comparable service.
BTW, it's people like you who want to give all our industrial employment to the Chinese and our premier parcel delivery operations to the Teamsters union.
I don't think you intend the best for America!
You must be in that $8 billion dollar cost over run? I don’t know what that has to do with China except they are more free enterprise than we are. Is that what you are saying? Make a profit. Herman is coming for the parasites.
I suggest no cut in service except Saturday. In fact I would like to see them run like UPS. I mean RUN as they work!! What I suggest is big salary cuts. If they don’t like it —leave. %50 cents a letter is beyond a rip off, That is why I pdf email all my correspondence. This postal system has been intermediated real bad.They think we are idiots. They lost our business with their arrogant “give a crap” attitude. Now they are history. And it is just starting. we are going to “RAISE CAIN”
Junk mail works.
USPS could probably double their bulk rates and only lose 25% of the volume.
Any sane business would jump at that.
The law requires USPS to provide a nonpreferential service and a preferential service. The rates are based on economic evaluations of cost data regarding the way each of the two categories are handled.
Currently they make money on advertising matter. You could double the cost and find yourself in court on the losing end since the law doesn't allow profits.
im beginning to think congress is as toxic as the president; more so, perhaps, because it’s self-perpetuating.
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