Thursday, September 15, 2011

How Congress Bankrupted the Postal Service in 3 Easy Steps

With all the confusion in the news media about the U.S. Postal Service's financial problems, finally one writer nails it on the head.

In Next Washington Debacle: The Broke Postal Service at Seeking Alpha, usnews.com columnist Rick Newman succinctly summarizes "how Congress has made the mail service a national embarrassment":

1) Hamstringing its finances: "The postal service faces unusual limits on its ability to manage costs, such as an obligation imposed by a 2006 law to 'prefund' a large portion of its retiree healthcare plan, instead of a more typical pay-as-you-go arrangement." Newman doesn't mention that the prefunding is an accounting trick used to understate the size of the federal budget deficit.

2) Making it obsolete: "Congress has ... micromanaged the postal service through a strict set of rules governing what it can and can't do while fulfilling its mandate of universal mail service."

3) Waiting until disaster is near: "The USPS has been seeking sounder finances and greater independence for several years, yet Congress has sat on its hands to the point that default seems likely and insolvency is even possible."

Newman concludes that postal reform "won't happen unless Congress relinquishes its own prerogative to interfere. Don't stand by the mailbox waiting for deliverance."

Other recent articles about the Postal Service's financial problems and cost-cutting efforts:

7 comments:

Anonymous said...

Congress could screw up a 1 car funeral

pelicandope said...

if congress was put in charge of the sahara desert they would run out of sand in a week, these baloon heads are killing this country they are no longer for the people but themselfs bicking with each other o im right no im right screw all of you s

Anonymous said...

Mail Volume is down. Reduce The 11 Board of Governors of the United States Postal Service.

Anonymous said...

they need to revise their marketing campaign to Buy American, use the United states Postal service. If every company switched a small percentage of their current shipping to the usps there would not be a problem. Of course I prefer the service from UPS but.......

Michele said...

For a deeper discussion of this, go to this link - http://politicalirony.com/2011/09/15/the-war-on-the-postal-service/
Very informative.

Anonymous said...

Congress is killing the postal service with the mandated 5 Billion yearly prefund payment. USPS is the second largest employer in the USA. When hundreds of thousands of Postal workers are unemployed and can't pay taxes, how will Congress be funded, oh yea their rich cronies that they helped get rich over the last decade plus. Good Luck with that!!!!

Anonymous said...

The Post Office is planning on consolidating 252 processing plants. If this happens, not only will there be local job loss but a local letter will take 2-3 days to get to the destination. Save Americas Postal Service without using tax payer dollars. Print the Petition at http://www.saveamericaspostalservice.com and have your friends, family, & co-workers sign it. Then send all the signatures you collect to your congressman. To find your congressman’s address, visit House.gov. You can also email you congressman. Just goto House.gov, type in your zipcode, and then email your representative. Ask them to support the Bill HR 1351.