Last year, the U.S.P.S. added another $5.1 billion in red ink to its ineptly managed, unionized, failing operation.
USPS in its press releases makes this claim: ”The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.” But does it make any sense that the USPS could be in the red while maintaining its bloated business model with no taxpayer support? Of course it doesn’t.
Many states historically paper over their budgets by borrowing money. The USPS opened a $15 billion line of credit from the U.S. Treasury in the 1990s. They could make a stretch and claim that the treasury is covering its bills and hope we forget that every April 15th, taxpayers write checks made out to the U.S. Treasury.
Who do you suppose picks up the tab for the USPS commercials?
If that money borrowed is paid back, there’s no problem, right? Indeed there is; an equally inept Congress wants the taxpayer to once again foot the bill. Another way the taxpayer has continued to pick up the tab for such largess is due to the continuous rise in the cost of postage stamps outpacing inflation.
Congressman Darrell Issa (R-CA), Chairman, House Government Oversight Committee introduced H.R. 2309, The Postal Reform Act on June 23, 2011. A major portion of the plan relies on discontinuing mail delivery on Saturdays.
Alternatives to Congressman Issa’s overhaul might include the following:
1. Raising the price of junk mail to the same price as first class mail. Studies have shown that mail advertising is ineffective; perhaps this would also encourage companies continuing to send their unwanted trash to discontinue this action.
The average American adult receives 41 pounds of junk mail each year. According to the Environmental Protection Agency, about 44% of junk mail is thrown away without being opened or read. People have become so inundated with advertising mail that they cannot or do not care to go through all of the pieces of junk mail that they receive, which leads them to just throw most of it out.
2. Break up the postal union. There is absolutely no reason for a former government run agency to allow unions. They predictably increase costs while getting union members better wages and benefits than employees with equal education and job skills.
3. Encourage the use of online bill payment. It is reliable and costs nothing.
4. Need to mail a package or anything weighing more that an ounce? Begin using UPS or FED X, both with sound business models and in no way subsidized by the taxpayer.
5. Immediately cease and desist from all forms of advertising.
That’s my story and I’m sticking to it; I’m J.C., and I approve this message.
Complete story: Will you still get mail on Saturdays? (Here)
Visit Jim’s site: We The People
Photo credit: MoneyBlogNewz (Creative Commons)
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