Need summary of USPS situation for dummies

[OneGrassRoot]

The dummy being me. :)

When those attacking the challenges the USPS is having as another government failure, I don't have the proper response.

I know they're union, and I know they are a separate agency in some way from the federal government -- and thus have the impression they operate as more of a private industry than government -- but I don't know the facts.

Can someone help me out?

:hi:

[AngryAmish]

1. THis thing you are using, it is called the Internet.

Invented by DARPA some years ago.

Anyway besides political message boards and midget porn, people use it to pay bills and communicate with each other without using the post. So fewer things must go through the post.

The USPS makes money by people using the post.

So the USPS costs are relatively fixed but the income has gone down. Since they get no tax money as things are they are running out of money.

They can't operate as a private business would because of statute.

The USPS is fucked (to use a colloquialism) and something must be done. Either cut people and service or allow them to go into other businesses.

[OneGrassRoot]

3. So it's a practical matter of the times, not a mismanagement issue.

Thanks. :)

[Occulus]

15. Read my post, too

He left out a couple real big issues.

[Occulus]

14. You left out the biggest factors: prefunding and the overpayments.

But for those, there would be no financial crisis. This is a manufactured problem intended to speed privatization and the breaking of the APWU, the NALC, and the mailhandler's union (I forget the acronym).

We're talking about tens of billions of dollars in overpayments alone and billions more for the prefunding.

[OneGrassRoot]

20. Thanks to you as well. :) n/t

[Shagbark Hickory]

2. One of the big problems is that companies like Fedex and UPS lobby for legislation that makes

the postal service less competitive and less able to stand on its own two feet.
They spend tens of millions in fact to do just this.

This is not the only problem but there are numerous consequences of this kind of corruption.

[OneGrassRoot]

4. Thanks. :) n/t

[Shagbark Hickory]

5. You may find this post interesting.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1680032

It's sort of a brainstorming of USPSs probs.

[OneGrassRoot]

6. Perfect, thanks so much. :) n/t

[JHB]

12. Another thread on the pension prepay problem for USPS:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1924885

[OneGrassRoot]

19. Thanks, JHB. :) n/t

[ThomWV]

7. There is nothing wrong with the USPS - the financial failure was caused by Congress

They are going broke because the Congress forced them, and them alone, to fully fund the entire retirement cost for all of their employees from day one. Its eating up their entire budget. So the "problem" has nothing to do with changing customers, or changing business climate, or changing product demand. Its all trumped up Republican-caused "failure".

[OneGrassRoot]

8. Thank you. :) n/t

[elleng]

13. Yes, Thom's #7 is THE issue.

[white_wolf]

9. Someone on another forum had a good idea for the USPS.

They should get into the money devilry business like Paypal, but charge people less. I know Paypal charges like 1.9% of the money sent, the USPS could do it for something like .5% and still be performing a valid public service.

[Shagbark Hickory]

10. +!.9

There are so many things the government can do to make money. This is yet another great idea.
The problem that has yet to be overcome with ideas like this is that in this example, Paypal would lobby congress to create laws and rules that make USPS uncompetitive.

If you ask me, it'll have to be the other way around. The government will have to put the restrictions on paypal!

USPS could be making money in the mail and parcel business too for that matter.

[OneGrassRoot]

11. Excellent point:

"The government will have to put the restrictions on paypal!"

[Occulus]

16. That's actually not a half-bad idea

and administering the system could create new jobs in the clerk craft. I bet management would go for making them 204-B or higher positions, perhaps even EAS, though, or call it 'data entry' and staff it all with TEs and PTFs.

[jberryhill]

18. Interestingly, a lot of post offices in other countries provide basic banking services /nt

[Eric J in MN]

17. The Post Office won't be broke if it's allowed to make these accounting changes

- Recover money it overpaid into its pension

- Be freed from a unique requirement to prepare for health care costs 75 years into the future

http://www.youtube.com/watch?v=Gl92Exgh9yI