September 6, 2011 by USA Post
USPS Broke, The New York Times today reports that unless the postal service receives help from Uncle Sam, mail delivery will complete this winter. What about the television commercials sponsored by the postal workers union said no taxpayer money is needed to deliver the mail?
Absurd as it seems. “Our situation is extremely serious,” said Postmaster General Patrick R. Donahoe said the Times. “If Congress does not act, we by default.” Delaware Democrat Thomas R. Carper says,
If we do nothing, if we do not react in an intelligent, appropriate, the postal service could literally shut down later this year. That’s not the kind of development we need to inject a weak recovery, economic inequality.
Fannie, Freddie, GM, AIG, and now the U.S.P.S. keeping alive another zombie with tax money or money from nothing, is exactly what the economy needs.
The most urgent and $ 5.5 million is needed is to finance care for retirees health in the future. So we’re not talking about the post office that the mass of gas needed to trucks or to pay existing employees. Taxpayers are required to pay the cost of mail was delivered years ago.
However, there will be a long time (early next year) before the agency will run out of money altogether.
The volume of mail has dropped 22% over five years and not coming back. However, cutting the labor bill USPS is problematic. “We will fight this and we will fight hard,” said Cliff Guffey, president of the American Postal Workers Union, representing 207,000 mail sorters and postal workers. “It is illegal to revoke the contract.”
Labor costs amount to 80% of the USPS expenses, while working at UPS is 53% of expenditures and FedEx work is only 32% of expenditures. If any of these companies were having trouble paying their bills, it is doubtful that Congress would give a sympathetic ear.
Instead of winning customers by offering better service, the postal service is lobbying Congress for approval to discontinue Saturday delivery by mail. This just continues a trend that began several years ago. No matter what technological innovations are developed, the USPS, as James Bovard explains
Still delivers the mail about the same way it was delivered in ancient Greece, Herodotus when he coined the phrase, “Neither snow nor rain not heat nor gloom of night stays these couriers from the swift completion appointed rounds. ” services downplays the motto these days because a few inches of snow or a schnauzer with a frown can stop the delivery days. As John Haldi postal expert concluded:
Despite the many advances . . . mechanized handling technology, the main achievement of the post office over the past 200 years has been limited to the introduction of durable, light-colored plastic bags for use with airmail.
By 1950 the mail was delivered twice a day or a week a dozen times. Soon postal customers can expect only five deliveries a week. Unless there is a holiday, of course.
Bovard describes the postal service as “probably the worst managed and one of the least honest corporations in America.”
A perfect candidate for a federal bailout
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