Postal Service Nears Default, Shutdown
In what could be read as a morality tale for government growth, bureaucratic inflexibility and the dangers of monopolies, ABC News reports that the U.S. Postal Service has begun shuttering offices to stem a growing $9.2 billion deficit and could shut down by next summer.
Why?
USPS owes $5.5 billion to fund future retirees' health benefits, and next year it may not have money to pay its 560,000 employees. [Spokesman Dave] Partenheimer said that by Sept. 30, the end of the USPS fiscal year, the agency will have reached its borrowing limit of $15 billion.
"That's why we cannot make the payment of $5.5 billion," he said. "Something we desperately need is action from Congress to operate more like a business. That's why we're looking at other proposals to save us money."
Apparently the Postal Service is considering lobbying to be able to deliver alcohol, put advertisements on the side of trucks and offering more hand-delivery. And this:
The USPS wants Congress to restructure their health care and retirement systems, to make them independent from the federal government. In addition, the agency would move to 5-day delivery, Partenheimer said, but can't do so without Congressional action.
Or perhaps the time for a federal postal service has come to an end?
- Comment (15)
- · Quote
- · UnfollowFollow (0)
Comments :
Oct '10
Re: Postal Service Nears Default, Shutdown
Perhaps this will be a foreshadowing of what will happen to Social Security: sorry, folks, but your elected (union, in this case) representatives sold you a pup. The cupboard is bare. You're not going to get what you thought you would.
Sep '10
Re: Postal Service Nears Default, Shutdown
Strangely enough, the NY Times has an article on this that puts part of the blame on... labor costs.
"Labor represents 80 percent of the agency’s expenses, compared with 53 percent at United Parcel Service and 32 percent at FedEx, its two biggest private competitors. Postal workers also receive more generous health benefits than most other federal employees."
But they're doing their best to cut costs. Remember this article from last week?
Success at the Post Office: Fewer Workers Are Paid to Do Nothing
Dec '10
Re: Postal Service Nears Default, Shutdown
Is it time for an amendment to strip the postal service from the constitution? Or, perhaps it's time to quit pretending it can be done at a profit Are there any other universal services that run at a profit?
Jun '10
Re: Postal Service Nears Default, Shutdown
The natural result of putting people ahead of profit.
Jun '11
Re: Postal Service Nears Default, Shutdown
Mollie Hemingway, Ed.
Apparently the Postal Service is considering lobbying to be able to deliver alcohol,
Like.....as in.....delivering another keg to a frat party that is in danger of running out on a Saturday night? Or as in dropping off a nice Bordeaux before the wine and cheese soiree?
Will I need to tip my mailman? Will he cut me off when I've had one too many? Will there be a "Mailman's Pick of the Month" vintage? Will M.A.D.D. jump on board because a Federal Government Sponsored Home Delivery of Alcohol Program will reduce the need to drink and drive?
I can see it now. "Mrs. Jones, here is your social security check along with 4 bottles of rum. We've already deducted the rum and the delivery charges from your check. Enjoy, te salu!!"
The possibilities are endless. No wonder the Postal Service is so well run - their executives come up with such wonderful business plans.
Oct '10
Re: Postal Service Nears Default, Shutdown
This is 150 years too late. The postal service could easily be replaced by Fedex and/or UPS. Forget the franchise idea for universal service. With electronic delivery systems, no place in the US, or around the world for that matter, is unreachable even at a modest price. So, a letter to Nome, AK, would cost more than one to NYC. How much does Fedex or UPS charge to deliver a 2 lb package to Nome?
Re: Postal Service Nears Default, Shutdown
michael kelley
Mollie Hemingway, Ed.
Apparently the Postal Service is considering lobbying to be able to deliver alcohol,
Like.....as in.....delivering another keg to a frat party that is in danger of running out on a Saturday night? Or as in dropping off a nice Bordeaux before the wine and cheese soiree?
No no,..the government will now be running moonshine, see? No more running from revenuers. Just install that little horn on the Post Office truck that plays "Dixie," like they did on Dukes of Hazard, and off they go! Neither rain, nor sleet, nor snow,..you get the idea.
Jun '11
Re: Postal Service Nears Default, Shutdown
Dave Carter
michael kelley
Mollie Hemingway, Ed.
Apparently the Postal Service is considering lobbying to be able to deliver alcohol,
Like.....as in.....delivering another keg to a frat party that is in danger of running out on a Saturday night? Or as in dropping off a nice Bordeaux before the wine and cheese soiree?
No no,..the government will now be running moonshine, see? No more running from revenuers. Just install that little horn on the Post Office truck that plays "Dixie," like they did on Dukes of Hazard, and off they go! Neither rain, nor sleet, nor snow,..you get the idea. · Sep 5 at 11:43am
Suddenly, "going' postal" takes on a whole new meaning.
At the other end of this enterprise, they could set up a U.S. Postal Service Rehab Center for all of the alcoholics they enable.
This is what really smart Progressives call a "win-win" situation.
Sep '10
Re: Postal Service Nears Default, Shutdown
"Labor represents 80 percent of the agency’s expenses,
Okay, time for one of my rants. Name me any labor intensive government operation (I live in Canada so I've been arguing this for over 10 years with lefties) that doesn't end up with 80% of its costs as labor costs locked in by collective bargaining.
And here's my favorite kicker: when government tries to get more efficient by combining operations guess what happens? A bigger, more monolithic bargaining units and the union contracts get harmonized *up* to the most generous agreement not *down* to the least generous.
Brilliant!
So, you end up with a more powerful, inflexible union *and* more expensive perpetual labor costs but your so called savings from merging and rationalization are one time savings that disappear into the ether.
Sigh.
May '10
Re: Postal Service Nears Default, Shutdown
In today's world, having a Govt. run Post Office makes as much sense as Govt. run coal mines did in Maggie Thatcher's tenure as PM - none at all. It should be privatized - which means we would pay one time for someone to take it off our hands - and forgotten.
Oct '10
Re: Postal Service Nears Default, Shutdown
It is clear the USPS has taken steps to improve services and efficiencies.
They removed the clocks from the post office walls so customers would appreciate the nonvisible time while in line. Thats old news.
Real serious folks at the USPS.
Apr '11
Re: Postal Service Nears Default, Shutdown
I admit to having a bit of a soft spot for the old USPS. It's true that in a perfect world it would be privatized and/or abolished, but their operations are completely hamstrung by Congress. I think they would be willing to implement some useful (even profitable) changes if only Congress would allow it.
But I still actually send cards and letters through the mail, so I guess that's where my irrational bias comes in...
Jul '10
Re: Postal Service Nears Default, Shutdown
Charlotte:
But I still actually send cards and letters through the mail, so I guess that's where my irrational bias comes in... · Sep 5 at 5:44pm
I hear Ya, Charlotte, but Our soft spot for hand written letters shouldn't come at the cost of billions and billions of dollars a year.
I guess We're just "old school."
Oct '10
Re: Postal Service Nears Default, Shutdown
After moving to Mexico, one noticed the mail delivery service consists of a guy on a motorcylce with saddlebags. One only sees the occasional bill and no bulk junk mail.
Clean and simple. Anything else is UPS, FedEx, etc.
Makes one think just how heavy an agency the USPS is.
Apr '11
Re: Postal Service Nears Default, Shutdown
Jimmy Carter
Charlotte:
But I still actually send cards and letters through the mail, so I guess that's where my irrational bias comes in... · Sep 5 at 5:44pm
I hear Ya, Charlotte, but Our soft spot for hand written letters shouldn't come at the cost of billions and billions of dollars a year.
I guess We're just "old school." · Sep 5 at 6:38pm
Fair enough, Mr. President.
Thanks for the link!