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USPS Reports $15.9 Billion Loss, Asks Congress For Help
New submitter Gaildew2 writes with news that the embattled United States Postal Service has posted a $15.9 billion loss over the past fiscal year, more than three times the amount it lost the previous year.
"The USPS, which relies on the sale of stamps and other products rather than taxpayer dollars, has been grappling for years with high costs and tumbling mail volumes as consumers communicate more online. In September, the Postal Service hit its $15 billion borrowing limit for the first time in its history. That leaves it with few options if it suffers an unexpected shock, such as a slowdown if lawmakers are unable to prevent the year-end tax increases and spending cuts known as the 'fiscal cliff.' ... Postal officials want Congress to pass legislation that would allow the agency to end Saturday mail delivery and run its own health plan rather than enrolling USPS employees in federal health programs, among other things."
The only people using mail anymore are junk mailers. And they get an ENORMOUS discount to send out thousands of flyers and coupons. So let's raise our taxes even more to prop up a bunch of spammers. If you don't, the union gets angry and leans on politicians. That's just good policy.
The ridiculous retiree benefits mandate handed down from congress is pretty much the sole reason for this unnecessary debacle.
No other organization is required to provide such an absurd level of retiree benefits payment so why is this insanity allowed to persist in light of the fact it could potentially doom the USPS?
And what about the people who live in places that are too expensive for privatized couriers to make a profit serving?
What are they to do, take a flying leap?
even using the highest estimate of F-22 cost I could find we'd need to give them 44 F-22s. Raise rates on mass mailers perhaps? The only reason I check my mail anymore is to get information the government wants me to know about, car registration, voter registration, jury duty etc. If I could give an email address to uncle sam, I would be more than happy to do away with my mail address. Let it die.
refactor the law, its bloated, confusing and unmaintainable.
THANK YOU! I wish more people knew that Congress decided to make demands on the USPS that no company could ever meet. And to think that the Republicans frequently politic on "running the government like a business" yet they make actions to ensure the government business fails.
You're a fucking nincompoop. USPS has been gutted by corrupt politicians who have been paid off by private interests.
The entire "public is less efficient than private" lie that had been repeated so often that everyone now believes it is just that. A lie. The reality is that private industry is far more efficient at corrupting and side stepping morality issues in the quest for a dollar. That *seems* like it's more efficient at first glance, but it actually incurs a giant negative externality that is not accounted for.
Now think very carefully before you reply with some hilariously stupid straw man argument.
So, based on your numbers, if we did that they'd 'only' have made a $10,400,000,000 loss.
Presumably you can explain how to 'simply' fix that part.
Was it the Union or Congress?
I thought it was Congress that mandated that they prepay it all for the life of an employee when hired.
Was it the Union or Congress?
I thought it was Congress that mandated that they prepay it all for the life of an employee when hired.
The "crisis" is entirely manufactured by Congress. Yes, Congress. They (and by "they," I mean mostly Republicans who seem to want to drive the post office into bankruptcy) required that the Post Office prepay pensions to the extent that no other business is required to do.
Lest you doubt this statement: The Postal Accountability and Enhancement Act of 2006 required the USPS to prepay pensions for all employees for 75 years in advance within 10 years.
That's right, 75 years. The USPS is required to prepay pensions for the next 75 years. Let that sink in.
Is there any other business you can think of that is required to stash away the pension funds now for its employees not yet born?
I am not a crackpot.
If they cut delivery dates, that limits my options and makes me even less likely to use them, especially if I need timely delivery of something like say a rent check or a bill payment (believe it or not, there are landlords and rental companies, as well as utilities and such that still only accept payment in person or a check in the mail as opposed to paying online).
You're free to spend $13 to FedEx your rent check right now (get your quote here - I picked slowest/cheapest option to send an envelope across town). By what factor would first class postage rates need to increase to be "uncompetitive" with that?
I am not a crackpot.
You seem to forget that most municipalities (and much of the Federal government) has huge pension shortfalls. Why? Because the gov't agency involved does have a pay-as-you go system. Pension funds are not funded until they are being withdrawn. That is one of the reasons we are in such a f**king mess.
Say an employee is to get a salary (s) and pension (p). Every pay period the government agency should pay salary and place the appropriate pension payment into an account. We are not funding our pensions.
I haven't read the link you provided - there may have been excess in those bills - but before laughing and ridiculing them out of hand maybe you should reserve a little frustration for the agencies that do not pay pensions and expect later generations to fund them.
If you're scared of your govt then you need to further restrict its powers
Vote 3rd Party in 2016 and beyond
The pre-funded pension is only one part of the problem (also, accounting does not work as simply as you seem to think). The problem is threefold (at least):
1. The pension mandate (from Congress), as already mentioned;
2. The USPS is forced by Congress to run unprofitable postal offices and routes;
3. The USPS cannot set its own rates (they are set by, surprise surprise, Congress).
Either the USPS is a public service, in which case it should be reintegrated into the government and divorced of the need to make a profit, or else it is a business and it should be able to set its own rates and terms for doing so.
You cannot have it both ways and get everything you want, which is exactly what Congress has done to them.