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Showing Original Post only (View all)It's not the Internet: The real reason the post office is struggling [View all]
http://current.com/groups/news-blog/93753691_its-not-the-internet-the-real-reason-the-post-office-is-struggling.htm
While the postal service may be facing challenges due to the Internet, it's not the only reason the agency is feeling squeezed. In 2006 Congress passed the Postal Accountability and Enhancement Act, which requires that the Postal Service pre-fund 100 percent of its health benefits for 75 years. Not just that, but the USPS was given only 10 years to accomplish the task. That's something no other organization (public or private) is required to do. Prior to the 2006 act, USPS generated a profit; now, with the additional $5.5 billion a year it must pre-fund, it's facing a budget shortfall.
Not surprisingly, the 2006 legislation was favored by industry lobbyists who wanted to privatize the mail industry. Not only did the bill add the burden of pre-funding benefits, it also made it more difficult to make additional funds, prohibiting the USPS from branching out into non-postal services. Previously, the Postal Service had experimented with offering services like online bill pay, but abandoned those efforts under pressure from Congress. Private companies like FedEx have poured money into lobbying Washington, giving them influence over rules affecting the USPS as well as netting them government contracts.
The argument goes, however, that in the age of email the postal service is a relic, unused and losing money. But the communities hit hardest by closures are rural, where residents may live miles from the nearest town and rely on the postal service for deliveries. In addition, Reuters found that many of those who would be affected by closure live in areas with limited or no broadband Internet connectivity, something the Postal Service did not take into account when reviewing which offices to shutter.
Facing a budget gap, it's easy to understand why the Postal Service is putting the closure of post offices on the table. But the agency is facing a burden unmatched by private competitors. The move fits in with the GOP ideal of privatization but it could also leave millions of Americans with decreased access to mail service. The Senate may have bought some time on post office closures, but it's crucial that people speak out in support of this service that many Americans depend on.
Whether it's the post office, prisons, the military, water or mandates on "health" insurance, the privitization effort all boils down to a deliberate strategy of funneling the peoples' money to the most wealthy and powerful, a new Guilded Age when monopolies and trusts ruled with an iron hand.
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It's not the Internet: The real reason the post office is struggling [View all]
Uncle Joe
Apr 2012
OP
The post office is the largest company in America next to Walmart--and it's a UNIONIZED gov't agency
live love laugh
Apr 2012
#49
And they put the pre-paid funds into the general treasury where it is spent like everything else.
dkf
Apr 2012
#4
Thank you. +1. This is another part of the greatest robbery in history. K&R. n/t
Egalitarian Thug
Apr 2012
#7
Personally I don't believe it makes a difference whether they were making a profit or not,
Uncle Joe
Apr 2012
#12
Yes, but it's a littly silly to suggest that the pension is the main reason the USPS is losing money
Snake Alchemist
Apr 2012
#14
there is one key thing both of you seem to be overlooking for what might also be part of the loss.
cstanleytech
Apr 2012
#27
they didn't pre-fund the pensions from June to November of last year? How did they get around that?
yodermon
Apr 2012
#24
Excellent point. Infrastructure rarely makes a profit directly. Nor should it.
RufusTFirefly
Apr 2012
#29
that's one of the most accurate picture of the relationship between business and government ever
yurbud
Apr 2012
#19
When the Democrats took over control of the House and Senate in 2007, they had other priorities.
Selatius
Apr 2012
#55
How can exposing the calculation to destroy the post office further the lie that
Uncle Joe
Apr 2012
#58
One of the ironic things about this is the fact that the rural areas, at least in my state, which
libinnyandia
Apr 2012
#56