Reveron is correct: the problem started years ago when our great congress charged the postal service for the cost of living raises for their retirees, witch is now part of the cost you pay for a letter.
The USPS is wholly self-sufficient, and have no effect on the budget. The problem a. the Republicans made them fund 75 years worth of pensions over the next 10 years (which is making them seriously in the red) and b. the USPS cannot (because of federal regulations) have competitive postage rates. Look at what it costs to use UPS or FedEx to mail a simple document…it’s a hell of a lot more than 45 cents.-The USPS was running well-within budget until they had to salt away a crapload of pension fund money.
^Salaries plus benefits: FedEx doesn’t provide benefits, except to the CEO.
<br.BTW, letter to New Zealand USPS $0.78. It IS indeed Congress restricting USPS fees then demanding paying 70 years of “benefits” in advance. They should do this to FedEx.
I looked up some facts and then did a little calculating; It turns out that “on paper”, the USPS lost $15.9 billion last year, but $11 billion of it was not actually “lost”. It was the 75-year forward retirement financing that Congress forced upon them. Of course, that still is a loss of $4.9 billion in 2012.*That comes out to about $15 per US resident per year.*At $2.50 per letter or small package, FedEx and UPS would cost the typical US resident far more than $15 per year. Any company, utility or gov’t entity that mails bills would have to add a 6-times increase in postage to their overhead, so prices and taxes would go up. Any medical insurance company or HMO that send prescriptions by mail (as mine does) would have to add $2 or so to each shipment, which would cost me $24 per year.*It is fair to say that at some time in the future, there should be no more hard-copy communications from businesses, utilities and the gov’t. But that’s not where we are today. When that time comes, I’ll support a roll-back of USPS. But in the meantime, they save us more money than they cost us. And if adding another nickel to the cost of postage wipes out the $4.9 billion loss, so be it.
the set-aside for pensions was $5 Billion each year for 10 years. the “deficit” for 2012 was $16 Billion.with standard math, the pension cost is not what you should blame, IMO.Competition in the private sector would create better service without deficits….and it wasn’t the GOP that gave USPS its monopoly!
How come the USPS is a government-protected monopoly? Any private company who attempts to deliver letters will receive an injunction, or possibly be penalized for violating the postal monopoly. From what is understood, people dislike monopolies on account of being able to stay in business even if they do badly because there is no competition.
“No other entity in America could survive if forced to do that.”
You are correct, no other GOVERNMENT agency even bothers to pretend to fund future retirement benefits. That is why we in the US have $75Trillion of unfunded liabilities.
On the other hand every private company by law must fund on an annual basis pensions and retirement benefits for its employees. You must be shocked that any private company can survive obeying the law.
All that was asked of the post office, a semi-private entity, was that it too do what every other company must do.
M Ster said, about 14 hours ago@disgustedtaxpayer “I couldn’t confirm your $5 billion per year statement”…..-MSter, my info is from http://cnsnews.com….date 2/6/13 which is an AP story, by Pauline Jelinek….dateline D.C.and printed 2 pages.Paragraph 16 at top of page 2: “The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 Billion in an account to cover future medical costs for retirees. The idea was to put $5.5 Billion a year into the account for 10 years. That’s $5.5 Billion the post office doesn’t have.”
rockngolfer about 11 years ago
Thank you. I am usually the one who points out it is CONgress’ fault for most of the USPS problems.
retpost about 11 years ago
Reveron is correct: the problem started years ago when our great congress charged the postal service for the cost of living raises for their retirees, witch is now part of the cost you pay for a letter.
Stormrider2112 about 11 years ago
The USPS is wholly self-sufficient, and have no effect on the budget. The problem a. the Republicans made them fund 75 years worth of pensions over the next 10 years (which is making them seriously in the red) and b. the USPS cannot (because of federal regulations) have competitive postage rates. Look at what it costs to use UPS or FedEx to mail a simple document…it’s a hell of a lot more than 45 cents.-The USPS was running well-within budget until they had to salt away a crapload of pension fund money.
josefw about 11 years ago
I heard this on the radio last week so the numbers are not to the penny. Employee cost per hour.
$32.?? USPS$28.?? UPS$17.?? FedEx
Dtroutma about 11 years ago
^Salaries plus benefits: FedEx doesn’t provide benefits, except to the CEO.
<br.BTW, letter to New Zealand USPS $0.78. It IS indeed Congress restricting USPS fees then demanding paying 70 years of “benefits” in advance. They should do this to FedEx.
Marty Z about 11 years ago
I looked up some facts and then did a little calculating; It turns out that “on paper”, the USPS lost $15.9 billion last year, but $11 billion of it was not actually “lost”. It was the 75-year forward retirement financing that Congress forced upon them. Of course, that still is a loss of $4.9 billion in 2012.*That comes out to about $15 per US resident per year.*At $2.50 per letter or small package, FedEx and UPS would cost the typical US resident far more than $15 per year. Any company, utility or gov’t entity that mails bills would have to add a 6-times increase in postage to their overhead, so prices and taxes would go up. Any medical insurance company or HMO that send prescriptions by mail (as mine does) would have to add $2 or so to each shipment, which would cost me $24 per year.*It is fair to say that at some time in the future, there should be no more hard-copy communications from businesses, utilities and the gov’t. But that’s not where we are today. When that time comes, I’ll support a roll-back of USPS. But in the meantime, they save us more money than they cost us. And if adding another nickel to the cost of postage wipes out the $4.9 billion loss, so be it.
Uncle Joe Premium Member about 11 years ago
Let’s see how fast FedEx & UPS go out of business if we require them to delivery daily mail to every rural address in the U.S.
pirate227 about 11 years ago
The problem is CONgressional interference.
disgustedtaxpayer about 11 years ago
the set-aside for pensions was $5 Billion each year for 10 years. the “deficit” for 2012 was $16 Billion.with standard math, the pension cost is not what you should blame, IMO.Competition in the private sector would create better service without deficits….and it wasn’t the GOP that gave USPS its monopoly!
Uncle Joe Premium Member about 11 years ago
More of “The Greatest Hits of Stupid”, brought to you by Michael Ramirez:
USN1977 about 11 years ago
How come the USPS is a government-protected monopoly? Any private company who attempts to deliver letters will receive an injunction, or possibly be penalized for violating the postal monopoly. From what is understood, people dislike monopolies on account of being able to stay in business even if they do badly because there is no competition.
Libertarian1 about 11 years ago
“No other entity in America could survive if forced to do that.”
You are correct, no other GOVERNMENT agency even bothers to pretend to fund future retirement benefits. That is why we in the US have $75Trillion of unfunded liabilities.
On the other hand every private company by law must fund on an annual basis pensions and retirement benefits for its employees. You must be shocked that any private company can survive obeying the law.
All that was asked of the post office, a semi-private entity, was that it too do what every other company must do.
josefw about 11 years ago
Fine, give me your numbers then.
disgustedtaxpayer about 11 years ago
M Ster said, about 14 hours ago@disgustedtaxpayer “I couldn’t confirm your $5 billion per year statement”…..-MSter, my info is from http://cnsnews.com….date 2/6/13 which is an AP story, by Pauline Jelinek….dateline D.C.and printed 2 pages.Paragraph 16 at top of page 2: “The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 Billion in an account to cover future medical costs for retirees. The idea was to put $5.5 Billion a year into the account for 10 years. That’s $5.5 Billion the post office doesn’t have.”