Post Office is a Canary in the Swamp

Posted by $ Thoritsu 5 years, 7 months ago to Politics
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The response to the mess created by the Post Office financial failure has been interesting and will be a predictor of other socialist responses and failures.
Couple of interesting points:
Prefunding retirement is unlike any other federal service - but precisely like ALL private companies. That was a great requirement, and a silly point...lets hide the cost for future generations to cover.
In the UK the cost of the service increased 30-40% when it was privatized. - Well then, that is the real cost, and always was, duh
SOURCE URL: https://www.federaltimes.com/management/2019/04/30/how-to-solve-the-usps-financial-death-spiral/


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  • Posted by mminnick 5 years, 7 months ago
    For a good portion of the life of the U>S> Post office it turned a profit and that was became part of the General Operating Fund of the U.S. Government.
    This changed when the Post Office was made a Semi-Private venture. Part of the problem is several of the restrictions that made sense while they were a federal department and had a monopoly on the mail business don't make sense now . Like they cannot change the postal rates to balance the budget except by "Act of Congress". (Not really but there is a huge process they must go through). They also must carry all items submitted. It competitors do not have to do this. There are some days all I receive in the mail is advertizements and junk mail. The PO's competitors don't have to carry the stuff and don't.
    In effect the Post Office is subsidizing it's competitors. A really stupid thing to do.
    The fundamental operating rules for the Post Office need to be reviewed and revised to let them operate as any business wold. That would cause a rate increase I'm sure but keeping the Post Office , IMHO is worth it.
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    • Posted by $ 5 years, 7 months ago
      I bet it changed before the Post Office was made semi-private.
      How are they subsidizing their competitors?
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      • Posted by mminnick 5 years, 7 months ago
        The competition is mot mandated by law to accept any article of mail brought to them. FedEx, UPS etc. do not have to carry business advertising, 3rd class mails ect. Given the load of material in those categories the post office caries (including advertising for those competitors leaving the more lucative ares open to them. Granted this is an indirect subsidy it is still a form of subsidy.
        If I have to shovel snow for everybody on the block and you don't who gets the better shoveling contracts because they don't have to spend time on the small stuff? I subsidize your work effort by removing the "ash and trash" you would have to do. Bad example I know but I think you get the picture of what I was trying to say.
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