3 ms·

Not giving employees benefits does not necessarily lead to a better service

orev 6y ago
The USPS is uniquely shackled by a ridiculous requirement to prefund 75 years worth of pension and medical benefits, and is also barred from raising rates the help pay for it. There is no way any organization can operate that way.
- lotsofpulp 6y ago
  You are correct the problem is that they are now allowed to set prices, but incorrect in that USPS is not required to prefund 75 years of pension and medical benefits. It is required to save for accrued benefits. Which is how it should be. If you purchased, today, a $2,000 annuity starting when you are 65, wouldn’t you want the insurance company to start saving for it now? https://www.cnbc.com/2011/10/24/the-truth-about-the-post-offices-financial-mess.html https://www.cnbc.com/2011/10/24/the-truth-about-the-post-off... > Although accounting rules require the postal service to calculate future liabilities, including those for projected future employees, the law only requires pre-funding of obligations to actual current and past employees.
  - Ericson2314 6y ago
    No, it's still stupid. The government creates dollars. Asking individual agencies to save money for pensions just distorts monetary and fiscal policy. When will people understand fractional reserve banking...
    - lotsofpulp 6y ago
      The federal government creates dollars. Ask the taxpayers in IL, NJ, CT, KY, Chicago, Detroit how their money printing presses are doing and if fractional reserve banking is coming to their rescue. And it still results in devaluation of the dollar. You don’t get to pull resources from the future for free, especially if the expected economic growth doesn’t materialize.
      - Ericson2314 6y ago
        > Ask the taxpayers in IL, NJ, CT, KY, Chicago, Detroit... We're talking about federal agencies. > And it still results in devaluation of the dollar. We could probably use more inflation, to be honest.
- cure 6y ago
  Thank Susan Collins, Republican senator of Maine, for that one. She's up for re-election this year.

orev 6y ago

The USPS is uniquely shackled by a ridiculous requirement to prefund 75 years worth of pension and medical benefits, and is also barred from raising rates the help pay for it. There is no way any organization can operate that way.

lotsofpulp 6y ago
You are correct the problem is that they are now allowed to set prices, but incorrect in that USPS is not required to prefund 75 years of pension and medical benefits. It is required to save for accrued benefits. Which is how it should be. If you purchased, today, a $2,000 annuity starting when you are 65, wouldn’t you want the insurance company to start saving for it now? https://www.cnbc.com/2011/10/24/the-truth-about-the-post-offices-financial-mess.html https://www.cnbc.com/2011/10/24/the-truth-about-the-post-off... > Although accounting rules require the postal service to calculate future liabilities, including those for projected future employees, the law only requires pre-funding of obligations to actual current and past employees.
- Ericson2314 6y ago
  No, it's still stupid. The government creates dollars. Asking individual agencies to save money for pensions just distorts monetary and fiscal policy. When will people understand fractional reserve banking...
  - lotsofpulp 6y ago
    The federal government creates dollars. Ask the taxpayers in IL, NJ, CT, KY, Chicago, Detroit how their money printing presses are doing and if fractional reserve banking is coming to their rescue. And it still results in devaluation of the dollar. You don’t get to pull resources from the future for free, especially if the expected economic growth doesn’t materialize.
    - Ericson2314 6y ago
      > Ask the taxpayers in IL, NJ, CT, KY, Chicago, Detroit... We're talking about federal agencies. > And it still results in devaluation of the dollar. We could probably use more inflation, to be honest.
cure 6y ago
Thank Susan Collins, Republican senator of Maine, for that one. She's up for re-election this year.