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> The core problem is Congress and the requirement they put is the USPS that they prefund 75 years of pensions. A requirement placed on no other institutions in
by mieseratte 9y ago
> The core problem is Congress and the requirement they put is the USPS that they prefund 75 years of pensions. A requirement placed on no other institutions in the US.
Why is this? Did the USPS have some kind of retirement funding scandal, or was someone trying to smother it?
- Spooky23 9y agoTwo reasons... it’s tranfers postal revenues to federal cash flow via bonds, and key GOP lawmakers want to make the service unsustainable to enable privatization.
- coldcode 9y agoPrivatization is a key goal here. By making USPS appear to struggle to make money it improves the argument that UPS, Fedex and anyone else who could make more money would be "better" at delivery. But the requirement that all Americans have access to daily (6) deliveries which is a core requirement for the Post Office is in the way of privatization as no one can honor this requirement for so little money as a stamp and make public company profits. So this can be buried in this "review" by proposing doing away with daily or even direct to home deliveries of mail. Interestingly enough by eliminating the daily delivery of mail also kills the DMA business, which while everyone hates spam mail, is still a vital business tool for small and local businesses. Fedex will not deliver mail to your house that costs a nickel.
- Spooky23 9y agoRemember that saving money isn’t usually a privatization factor. FedEx will deliver mail for a nickel when they get a dollar from the government to do so.
- mcbits 9y agoProbably because it forces them to buy and hold long-term US debt.