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Uncle Joe

(58,355 posts)
Fri Apr 27, 2012, 11:45 AM Apr 2012

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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k/r marmar Apr 2012 #1
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
K&R for the goddamn truth. Brickbat Apr 2012 #2
Thanks for the thread, Uncle Joe. Nt xchrom Apr 2012 #3
And they put the pre-paid funds into the general treasury where it is spent like everything else. dkf Apr 2012 #4
messed up 108vcd Apr 2012 #5
Voter Suppression. earthside Apr 2012 #6
actually oldhippydude Apr 2012 #10
Will the deal include the pre-funded health plan seleff Apr 2012 #52
Thank you. +1. This is another part of the greatest robbery in history. K&R. n/t Egalitarian Thug Apr 2012 #7
Exactly! obxhead Apr 2012 #8
So the USPS just began losing money in 2006? nt Snake Alchemist Apr 2012 #9
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
2011 is after 2006 nadinbrzezinski Apr 2012 #17
And your point is? nt Snake Alchemist Apr 2012 #20
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
FedEx, UPS and DHL druidity33 Apr 2012 #34
And urban too nadinbrzezinski Apr 2012 #44
they didn't pre-fund the pensions from June to November of last year? How did they get around that? yodermon Apr 2012 #24
Link Snake Alchemist Apr 2012 #26
You are confusing pension issues with healthcare pre-funding issues. hay rick Apr 2012 #38
Excellent point. Infrastructure rarely makes a profit directly. Nor should it. RufusTFirefly Apr 2012 #29
According to Thom Hartmann, yes Mister Ed Apr 2012 #40
K&R G_j Apr 2012 #11
One more thing Uncle Joe malaise Apr 2012 #13
K&R Bigredhunk Apr 2012 #15
True story. sudopod Apr 2012 #16
that's one of the most accurate picture of the relationship between business and government ever yurbud Apr 2012 #19
That's what Grover Norquist truly means Uncle Joe Apr 2012 #21
Is Grover Norquist part of a sleeper cell? summerintx Apr 2012 #50
K&R - Truth SalviaBlue Apr 2012 #18
So let me see if I understand this... KansDem Apr 2012 #22
Defunding is much, much cheaper than prefunding. hay rick Apr 2012 #39
Thanks for the post, Uncle Joe RainDog Apr 2012 #23
k&r Starry Messenger Apr 2012 #25
Enthusiastic K and R!! RufusTFirefly Apr 2012 #28
Thanks for the thread, Uncle Joe Samantha Apr 2012 #30
Thanks to everyone that read, posted, recced, Uncle Joe Apr 2012 #31
Wow! I didnt know about this Vehl Apr 2012 #32
And it's the internet. n/t zappaman Apr 2012 #33
Thanks, Uncle Joe. Zorra Apr 2012 #35
Here's another little know fact BobbyBoring Apr 2012 #36
Ok so why haven't Democrats done.. sendero Apr 2012 #37
Because it wouldn't be triangulation nt MannyGoldstein Apr 2012 #43
When the Democrats took over control of the House and Senate in 2007, they had other priorities. Selatius Apr 2012 #55
I keep arguing this same point Curmudgeoness Apr 2012 #41
I have a question for those of you with the stomach to still watch senseandsensibility Apr 2012 #42
The post office should offer email & broadband, w/ privacy protections grahamhgreen Apr 2012 #45
Bigtime K&R! Bozita Apr 2012 #46
That can't be right Orrex Apr 2012 #47
Not for nothing but... hay rick Apr 2012 #48
Gaah! LASlibinSC Apr 2012 #51
I pay a couple of bills online monthly Iwillnevergiveup Apr 2012 #53
Is this seriously new news to people? harmonicon Apr 2012 #54
How can exposing the calculation to destroy the post office further the lie that Uncle Joe Apr 2012 #58
Sorry - I should have been more clear. harmonicon Apr 2012 #59
One of the ironic things about this is the fact that the rural areas, at least in my state, which libinnyandia Apr 2012 #56
Yell it from the mountain tops! tooeyeten Apr 2012 #57
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