[78-L] who do these guys think they are? [fwd]

[Michael Biel]

On 2/1/2012 2:38 PM, Jeff Lichtman wrote:
>> . . . rather than be smart about it and raise the 1st class rate
>> to $1.00 (a stamp) and avoid bankruptcy they raise it a penny, jack up
>> the international shipping rates and still can't balance their budget.
>>
>> Mal on Maui
> A big part of the problem is that the U.S. Postal Service is a
> semi-private business. They are required to be self-supporting, but
> at the same time their rates and services are regulated by Congress.

The real problem is that a faction in Congress sabotaged them.  Back in 
the lame duck session at the end of 2006 they held a late night voice 
vote and inserted into a bill the stipulation that the Post Office had 
to pre-pay 75 years worth of future pension benefits in ten years.   No 
other entity has to do this.  The Post Office would be turning a healthy 
profit if not for this subtraction from their income.  They already have 
the next 40 years of pensions socked away -- ready to be stolen if we 
are not careful.  It was a plot to force the P.O. into bankruptcy and 
privatize it.  The P.O. could be turning a profit again if the remaining 
years of this unnecessary provision were rescinded.

Mike Biel  mbiel at mbiel.com
>
> For instance, they need permission from Congress to raise their rates
> faster than inflation. At this point the post office needs to
> thoroughly restructure their business, but they can't do it as long
> as Congress is in control.
>
> One solution would be to turn the post office back into a government
> service that isn't required to turn a profit. Another would be to cut
> it loose and let it operate as a completely private business. As it
> is now, the post office is required to fulfill a mandate but isn't
> given the flexibility or the funding to do so.
>
>
>                          -        Jeff Lichtman
>                                   jeff at swazoo.com
>