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Trump Wants Postal Service To Charge 'Much More' For Amazon Shipments (reuters.com)
President Donald Trump said the U.S. Postal Service should charge Amazon more to deliver packages, the latest in a series of public criticisms of the online retailer and its billionaire founder. From a report: "Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!" Trump wrote on Twitter. The president's tweet drew fresh attention to the fragile finances of the postal service at a time when tens of millions of parcels have been shipped all over the country for the holiday season. The U.S. Postal Service, which runs at a big loss, is an independent agency within the federal government and does not receive tax dollars for operating expenses, according to its website. The U.S. president does not determine postal rates. They are set by the Postal Regulatory Commission, an independent government agency with commissioners selected by the president from both political parties. That panel raised prices on packages by almost 2 percent in November.
Bezo's owns the Washington Post, which has been dogging the Russia and obstruction of justice investigations.
In fact, you can predict when a new Post story is about to break some news, because Trump will attack the Post or Bezos or Amazon about ten minutes prior to release.
postal service can stop pre-funding pensions for 75 years later.
The post office operates in the black. It is the pension rules, or maybe somebody's misinterpretation of them, that fuck things up.
“He’s not deformed, he’s just drunk!”
When did Bezos buy the Times? I know he owns the Washington Post...
#DeleteChrome
I believe that the USPS is charging Amazon a "market determined rate" which is competitive with UPS and FedEx. Where I live, most Amazon packages are delivered by UPS since I presume it is cheaper. Sometimes it will be FedEx or USPS or some independent guy in a beat up old truck. I assume Amazon has sophisticated shipping cost software which chooses the best rate. If the USPS charged more, Amazon would just switch to UPS, etc.
This is the free market in all of it's raw glory.
I don't read your sig. Why are you reading mine?
They aren't losing money on the shipping for Amazon, it was determined months ago when this first came out (as "revealed" by a hedge fund manager with ties to FedEx) that the USPS was still making a profit from Amazon, but realistically unless you are charging high dollar amounts, delivering to Rosebud, Nebraska is not going to be profitable.
However, even then they were profitable... up until the GOP required them to pay into pension funds for employees who do not even exist yet.
Actually, Amazon uses a mix of carriers, and has been making aggressive investments to build its own delivery capacity. The largest carrier by number of packages that Amazon uses is UPS. It also uses FedEx and OnTrac more than USPS based on its financials and its public statements.
USPS is primarily used for non-time sensitive shipping (read: free super saver whatever).
Still, in recent years, they have been making investments in the US and Europe to have a greater stake in regional carriers and to build intra-network shipping capability, as well as true "to the door" capability in major metros which drive high delivery volume.
Amazon is running several jets in both Europe and the US.
https://www.usatoday.com/story...
Amazon has acquired stakes in france and the UK
https://www.usatoday.com/story...
Amazon Flex - where Amazon is running its own "Uber" to deliver packages
https://flex.amazon.com/
So fuck the government employees, eh? How about the ones at the FDA that keeps poisons out of your food and drug supply. How about fucking them and see what happens to you? Maybe you'd like to fuck the NTSB people, they won't mind if your ass gets whacked in the next airline disaster because you fucked them out of job. And while you are at it, fuck the people at the SSA, Grandma would like to come and live with you. Save your pennies, her meds are expensive. And you can fuck the people at EPA, the ones who haven't already quit in disgust over that overgrown asshole in the White House. Those chemicals in your drinking water will be good for you.
Jesus, you are a stupid fuck.
The USPS using accounting standards no other group (corporation or government agency) meets with regard to its pension. If it calculated its pensions costs using normal methods, its profitable.
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USPS uses FedEx, UPS, and DHL for their logistics networks. They're the backbone of the USPS.
Source: I worked for DHL. We carried a lot of mail for USPS.
They only can't compete because Congress forces them to pre-fund their employees retirement for some ridiculous number of decades - something no other business in the country does.
Additionally, the USPS's charge is to connect every person in America no matter how remote and unprofitable. The point is to have a service to connect far away Alaska villages that have no profit motive for FedEx etc. to connect. It's the same with public transit - the point isn't to make money, it's to enable and improve our lives in a worthwhile way.
Without subsidy the USPS will need to scale down massively, they can't compete in a free market environment.
The USPS is not subsidized by the US government/taxpayers. Their rates are set by the government, but they operate entirely on the funds that they generate directly.
Even then, they'll always run losses because the international treaties rapes every western postal service. If Trump wants to do something useful he should unilaterally get the US out of the treaty of Bern.
The USPS is profitable. The reported shortfall in their budget was due to congress passing a new requirement (which only applied to the USPS) that they pre-fund their retirement account fully within five years. Meaning that the full retirement package for every postal service employee is fully paid. If every employee retired now (even if they were just hired and thus are not eligible for retirement benefits...) the full amount of their retirement pension is covered.
It is not a bad thing, but it was done in such a way as to make the USPS look bad.
"You want to know how to help your kids? Leave them the fuck alone." -George Carlin
What the postal service was doing, and is supposed to stop doing, is the kind of accounting that sent Enron executives to prison. If anyone but the postal service was hiding a $120 billion liability, it would be called "fraud".
What they were doing is saying to employees "work for us today, and we'll not only pay you today, we'll keep paying you after you retire, until you die." Someone can retire from USPS at the age of 56, so their retirement payments may be almost as much as their salary, or even more. Over the course of 30 years of retirement, the worker might be owed $840,000. So they had workers doing the work in say 1995, promised to pay them hundreds of thousands of dollars "later", but never set aside any money to be able to make good on those promises.
They owe about $120 billion - for work already done, and hadn't set anything aside to pay it. Most "every other business in the country" funds your 401K or other retirement by sending their contribution to a third-party investment bank every time you get a paycheck. You work this month, they pay for it this month, including the retirement part. State retirement plans work the same way, at least where I'm from in Texas - whichever agency you work for, when they pay for this year's work, they also pay whatever retirement they'll owe for this year's work. They don't have you work today and say "we'll worry about how to pay for it 20 years from now".
In 2006 they were given fifteen years to get caught up on the retirement they owed. They haven't come come close, because they are losing money. Any "profit" has to go toward funding the retirement promises they've made, but the "profit" hasn't been nearly enough and the number of letters they carry has fallen 30% over the last ten years, so it's unlikely they'll ever be able to pay for the retirement they are promising today's employees. They'll need the taxpayers to bail them out.
https://www.cnbc.com/id/450184...
https://www.govtrack.us/congre...
> that they pre-fund their retirement account fully within five years.
False. The five-year requirement is that every five years they have to calculate how far in the hole they are. (How much they owe to workers who have already worked, or are working on today, and whom they've promised decades of retirement pay to, without funding that promise.)
> If every employee retired now (even if they were just hired and thus are not eligible for retirement benefits...) the full amount of their retirement pension is covered.
Laughably false. They owe over $120 billion to workers who have already done the work and been promised retirement payments, but that the USPS has no way to pay for. In other words, they are $120 billion in the hole, to pay workers who have already done the work.
> that they pre-fund their retirement account fully within five years
The five-year requirement in the act is that every five years they have to figure out how much debt they have (retirement payments earned by workers) and compare it to how much they have set aside to make those payments. That's it - they just have to figure out how bad it is and issue report every five years.
What the postal service was doing, and is supposed to stop doing, is the kind of accounting that sent Enron executives to prison. If anyone but the postal service was hiding a $120 billion liability, it would be called "fraud".
What they were doing is saying to employees "work for us today, and we'll not only pay you today, we'll keep paying you after you retire, until you die." Someone can retire from USPS at the age of 56, so their retirement payments may be almost as much as their salary, or even more. Over the course of 30 years of retirement, the worker might be owed $840,000. So they had workers doing the work in say 1995, promised to pay them hundreds of thousands of dollars "later", but never set aside any money to be able to make good on those promises.
They owe about $120 billion - for work already done, and hadn't set anything aside to pay it. Most "every other business in the country" funds your 401K or other retirement by sending their contribution to a third-party investment bank every time you get a paycheck. You work this month, they pay for it this month, including the retirement part. State retirement plans work the same way, at least where I'm from in Texas - whichever agency you work for, when they pay for this year's work, they also pay whatever retirement they'll owe for this year's work. They don't have you work today and say "we'll worry about how to pay for it 20 years from now".
In 2006 they were given fifteen years to get caught up on the retirement they owed. They haven't come come close, because they are losing money. Any "profit" has to go toward funding the retirement promises they've made, but the "profit" hasn't been nearly enough and the number of letters they carry has fallen 30% over the last ten years, so it's unlikely they'll ever be able to pay for the retirement they are promising today's employees. They'll need the taxpayers to bail them out.
https://www.cnbc.com/id/450184...
https://www.govtrack.us/congre...
I'm not talking about prepayment of pension funds. I'm talking about how, uniquely among federal agencies, when new information changes the funds needed for prepayments such that the USPS overpayed, it neither gets a refund nor even to count those overpayments in a previous year as towards the payments required in a current/future year. The account is just permentantly overpaid. In 2012, it was to the tune of 11.2 billion
Guessing from your claim that this is a lie, I assume you're pretty conservative. There are a lot of sources, but even the Heritage Foundation has supported these claims.
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