Hope & Change: Even Government-Run Agencies Are Going Out of Business
by Jason BradleyThe US Postal Service is planning to reduce payroll by 20 percent. That’s a nicer way of saying 20 percent will join the unemployment lines. The Postal Service is citing increasing costs from employees and declining mail volume.
Notably among the costs cited were retirement and healthcare. It was only in 2007 that Congress mandated it pay over $ 5 billion a year into its retiree funds.
ATTLE — The financially strapped U.S. Postal Service is proposing to cut its workforce by 20 percent and to withdraw from the federal health and retirement plans because it believes it could provide benefits at a lower cost.
The layoffs would be achieved in part by breaking labor agreements, a proposal that drew swift fire from postal unions. The plan would require congressional approval but, if successful, could be precedent-setting, with possible ripple effects throughout government. It would also deliver a major blow to the nation’s labor movement.
In a notice informing employees of its proposals — with the headline “Financial crisis calls for significant actions” — the Postal Service said, “We will be insolvent next month due to significant declines in mail volume and retiree health benefit pre-funding costs imposed by Congress.”
During the past four years, the service lost $20 billion, including $8.5 billion in fiscal 2010. Over that period, mail volume dropped by 20 percent.
The Postal Service is not directly financed by the government, and, therefore, must finance itself.
However, because of labor laws and government regulation, it is not allowed to set its own prices, wages, or even hours. So any reforms to allow it to operate efficiently has to be met and approved in Congress. Given that, it is no wonder that its private sector competitors provide a superior service and make a profit. The Postal Service is handcuffed and cannot direct its own internal policies for long term planning.
Hooray for Big Government!
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134 Comments
Shocker, a Govt Agency that's ineffective . What about that long list of "duplicate Agencies?" When will all that waste & fraud for them, be dismantled?
No problem, borrow a few trillion more from China or have the fed print more money… problem solved.
Gee I wonder why?
Total government control in microcosm. Imagine what would happen if the government controlled everything? Would that 20% be killed or sent off to labor camps?
"The Postal Service is not directly financed by the government, and, therefore, must finance itself."
Thank you……I have made similar comments. Just prepare yourself for all the people that will be telling you you're wrong.
No worries, Barry’s there, and he’ll save them with his personal stash.
"It was only in 2007 that Congress mandated it pay over $ 5 billion a year into its retiree funds."
Hmm, what else was happening in 2007? Oh yes, piglosi was starting to drain the swamp.
and the government has no more money to give to the Union demands,the post office is losing billions,looks like a receipt created in Hell's Kitchen!
The USPS would best behoove itself by cutting 80% of its management and paper pushers in DC for starters. And the no-brainer idea of getting non-federal, outside insurance and health care would save millions.
But there are other issues, good and bad, that the USPS has. FedEx, who is non-union, currently holds the USPS contract for moving most mail by both air and ground. The USPS loses a lot of money for the very rural areas and the private sector, namely FedEx and UPS, are not willing to add these unprofitable areas to their routes. USPS could save millions in gas, postal trucks and repairs if they went back to the good old "Postal Carriers on Foot" as well.
Mr. Bradley,
You really need to read "American Theocracy" by Kevin Phillips.
Where we are, is unsustainable.
Can you feel the tension building?
And the Left has called for a day of rage on Sept. 17th to oppose cuts. Anyone care to look into the crystal ball and make a stab on what is coming this fall?
Dismantle a business that employs over 7 million people (directly and indirectly) and is 1/7 of our GDP?
We should get congress and the unions out of the business, not dismantle the business.
You know the Union leadership will call for a walkout,no more Social security checks will be delivered will be the top story coming out of every democrat media outlet.
I wonder how all of those unions will react? After all they think that people are entitled to it and we have to pay for it.
Walter Hanson
Minneapolis, MN
"…approved by Congress…" Oh, thank God! Now I feel so much better. (sarc)
Well, we've had the Arab Spring, and another Recovery-less Summer.
How about an American Fall………….
If you want to see the epitome of inefficiency and waste, take a tour of the Merrifield, Virginia, post office (in the D.C. area) ! It is a living example of tragicomedy.
EVERYTHING the government puts it's dirty finger on, turns to sh!t!!!
True.
But continuing in that same vein, only the government could turn the sh!t business into a bankrupt entity.
Sad, true, and profound.
The nestmate and I had an honest discussion last night about moving to Alaska or Texas. We found out that Soros is closely tied to the environmentalists which illegally got our mining industry shut down here, which also inexorably links him to Gov. Moonbeam.
I have always been known to follow the laws of this land, to a T. But what does one do when the laws are illegal? The word which comes to my mind about all of the issues facing us today is………."fatiguing".
Here we go again. With numerous falsehoods about the USPS everywhere, I guess the only thing one can do is bad mouth it to death. That is easier than a little reading I guess.
"Postal Carriers on Foot"
That will save it money! Really?
"Effective May 1, 2011, applicants filing for Social Security and Supplemental Security Income (SSI) benefit payments must choose either direct deposit or the Direct Express® debit card. Currently entitled beneficiaries and recipients receiving payment by check will have until March 1, 2013 to switch to direct deposit or the Direct Express® debit card. As of March 2011, 85 percent of all Social Security and SSI beneficiaries received their benefits by direct deposit. For more information, please visit the Department of the Treasury’s Go Direct® website http://www.godirect.org"
Yeah.
I reckon we all have battle fatigue.
What one does, when the laws of the land are illegal, is become an outlaw. The basic description of that word, is one who lives outside the law. The Government(s) Federal, State, City, County, and local have legislated enough laws that each and every one of US commits probably at least a half dozen felonies a day, and not even realize it. That is their method of controlling US.
A long, long, time ago, I was as you describe. I followed the laws to a "T". The older I get, sadly, I follow only the ones that I deem appropriate. That is not good. That demonstrates a breakdown of the social compact, and a trend toward anarchy.
There are many more people like me.
"………The Postal Service is citing increasing costs from employees and declining mail volume……"
Why don't we still make typewriters….???????
The US Post Office died the day email was created. It just had a long jazz funeral.
Did you know that the Postal Service sponsored Lance Armstrong?
To the tune of about 37 MILLION dollars?
How many 37 cent stamps does that equate to?
SS is direct deposit now. No more checks in envelopes — BTW a major reason the USPS is a goner is that even most of us geezers do our banking online. We get practically no mail except ads and the odd personal letter or card. Post offices are waste lands, yet when one enters one on the nonce, it's empty of clerks and one waits until one deigns to come to the counter. Since most purchasing and gift giving we do is online too now, we don't have packages to schlep and things coming to us arrive by UPS or Fedex.
Works out well and now if we can only get the huge monkey of public union thuggery off our backs, you younguns can go back to work producing, inventing and kicking into the economy.
If the post office goes belly up and I don't get my electric bill do I still have to pay it?
Very true.
And Facebook and Twitter put the final nails in the USPS' coffin.
Exactly. Just as bank tellers' days were numbered the day the ATM was invented. But try to explain this obvious fact to Oblamer.
How's that neocon plan of exporting all our jobs going? Their "Free Trade" plan?
Why are we giving aid to that tiny, rich nation that attacked us when so many Americans are out of work (many Israelis go on year-long vacations, btw)? Why do we give them juicy contract when Americans are out of work? Why are we fighting their wars when Americans are out of work?
We need a candidate that will put AMERICA first. That is not the case with Crazy Eyes:
http://minnesotaindependent.com/55061/bachmann-am...
I have begun to seriously think about running for the Representative position. The county up here is completely fed up with the liberal they elected (she ran on false pretenses, imagine that). Last year, in a town hall meeting she stated "I want to close and gate all the roads up here, there is no reason people should be going into my woods". When confronted about "her woods" and that the public land is public land, she replied "no, it is mine to determine who should have access".
Now you know why all those gates she keeps putting up are mysteriously pulled out with winches.
Like me…that shooting a prowler at 2AM back on June 15, 2010…which got me on probation…because I "brought a gun to a fistfight" in my front yard, and the DIMocRAT judge wouldn't consider it self-defense…
The NM Government is trying to turn itself into a reasoned, intelligent Administration….
Martinez, when confronted with a State Senate unwilling to do what the Voters DEMANDED on licenses for illegals, (despite voluminous, constant, and egregious evidence that an illegal cottage industry has sprung up in obtaining NM Licenses for "less than palpable" individuals), has issued an Executive Order…
10,000 letters went out to random individuals of the some 85,000 estimated licenses of individuals considered foreign to the US…to make an appointment and report in person within 30 days of the letter, to provide proof of their residency in New Mexico at a State-run DMV office…or have the license revoked…
Of the 10,000, only about 1000 responded to set up appointments…of those, almost all of the appointments were NOT kept…
This issue will be re-visited in the special session coming up…
Martinez should just keep sending letters…and revoking those licenses…
And this adds to the discussion how?
Unions, Email, Govt regulations, All part of the demise of the USPS. Not to mention that the USPS is as about as efficient as a Rube Goldberg machine in getting a task done, point in case, I can sent a package 500 miles away UPS and send one to a neighboring city 40 miles away and the UPS one arrives first, plus I can track every hop the UPS package makes, not so with the USPS. Now how is it I can send a package via UPS or Fed ex for less money and a faster delivery time?? Oh wait I answered that in the first four words of my post…
I do make some use of the USPS for eBay…but the business model is outdated, inefficient, and doomed…
Email is SO much faster…
Or buggy whips, for that matter…
I vomited typing this.
Because that is a great way to stay in business. Force people to figure out how to do ALL their mail transactions via the Internet. Perhaps if they do walk out, FedEx and UPS will be allowed to deliver mail so the USPS can see how it SHOULD be done.
Agreed. My post was referring to the dismantling of the long list of "Duplicate Govt Agencies" that suck up our tax money. Remember that list?
They're using the Post Office as a pawn to make their point. The Obama Admin always punishes innocent people in public for their own socialistic ends. The Post Office is a prime example of that. They cannot regulate their own Policies.
Plus Infinity to everyone. I passes out the candy. It's Sunday the 14teth of Augst. Muh Birthday. Getting younger every day. Oh ya Da Heck with the USSA Postal Orifice. Shut em down!
I had an experience with the USPS that made me use UPS instead. I had a package to send and I went to the nearest Post Office. There were about 10 people in line and you have 3 guesses as to how many clerks working (if you said 1, you win). I waited about 5 min. and one person was served in that time. Finally, I got fed up and went to the UPS store across the street. One person in line and 2 clerks. I waited one minute before I was served and then my package was on the way and it was only $1 more than the USPS.
I did make one snide remark while in line at the USPS, I said, "And people want the gov't to run their HEALTHCARE!?!?. Not me.
Is that your Al Sharpton impression?
The Federal Buggy Whip Agency,….
if only we had one,…..there still would be buggies.
The USPS union are playing radio commercials in San Diego about how they cost nothing to the taxpayer because they charge for their service……. never mind that they lose billions every year and the taxpayer is picking up the tab for that loss.
What a pathetic organization……
Sent off to labor camps and worked to death.
Yeah… it's all kinds of retard in that pic. (and so I changes it now… )
First, taxpayers fund everything government does. Government pays for nothing, taxpayers get the bill for everything.
Now, the Constitution commands the government establish post offices and establish post roads. It does not command it, much less allow it, to operate and police either, much less fleece money from taxpayers to pay for policing or operation of either.
That the USPS is not funded by taxpayer's dollars is a GOOD THING, it is one of the few things government is actually doing properly. It should not be funded by taxpayers beyond establishment of the offices and the roads.
Enumerated powers folks, putting government itself back into that box is the answer to the troubles we are experiencing today. USPS is going to downsize like any other private sector business. As we hold government to within its box, especially the executive branch, much of it will downsize as well. Government only has the authority to tax and spend on enumerated powers. This line we must expose clearly and daily in order to see it respected.
Too late…. China downgraded the USA and stopped lending. They think we are unsustainable too.. http://news.goldseek.com/GoldSeek/1313006700.php
The Postal Service should have been privatized long ago. The government needs to be out of the business of running anything. The biggest exception in national security and areas where private industry will not invest because of the size and scope of a particular project, such as a dam, an interstate highway or a port. Government can supervise, regulate the actions of a company working on a government contract with regard to that contract alone. But, Amtrak needs to go. The government does own and manage public lands – national forests – wildlife refuges, and this needs to continue as well, however where there are significant resources this country needs, these resources need to be extracted for the good of the country with a minimal disruption of the environment. But, the policy of just buying land to take it away from mining and drilling interests is government overkill.
I have long thought the Post Office should be privatized. It obviously doesn't compete well with UPS or FedEx as a government agency, and their existence clearly doesn't need to be provided by government.
Gotta love how technology screws up government memes.
That raises the question of where does the eight billion dollars that they lost last year come from?
That's between you and the electric company, but if you are in the 85% of all SS and SSI recipients, you'll still get your directly deposited benefits.
That was my point CL!
Happy Birthday to You! Happy Birthday to You! You're a good friend to haa-ave. Happy Birthday InfidelCzar!
Have fun today!
Right. Now if only we can revoke all the toxic Policies that the Fed Govt has overlaying everything, we'll do better.
Come on to TX. It's a great place to live excepting a few urban areas like Austin.
I read and hear more and more that the coming troubles won't occur here.I think they will, but will quickly be put down by regular people. Castle Doctrine.
There are going to be two Americas. Or I should say America, and Amerika.
Yes I did. And so did 2 billion other people.
84,090,909.09 stamps @ 0.44 ea. They will sell those Monday….before noon.
Seriously though Cowboy…..Surly you're not implying the USPS shouldn’t spend money on advertising and marketing? They need to do more than shave their logo on the back of some kick boxers head.
Actually, we would just have the buggy whips…with government mandated special mounts in our cars that cost in the neighborhood of $1500.00 USD each…
Yes….I made a leap. I just needed to say what I said. Sorry and thanks.
As for it being a pawn…..exactly! That is why PMG Donohue just through down the default gauntlet.
If congress does not act by next month, he may get all he wants (by default): The rescinding of all current union contracts (with the coveted no layoff provision), the immediate layoff of 200,000, 5 day delivery, closing of 34,000 unproductive offices, and the ability to renegotiate all other contracts from transportation to the crony capitalistic postal rates negotiated with the big shippers like Time that put hundreds of smaller papers, mags and printers out of business.
The PM General just said….”Congress, don’t call my bluff.”
You are correct. Only thing is, the "bank" they turn to for their financing is the US Government who has "lent" them virtually the entire $20 billion noted in the article. And who is the US Government? The taxpayers (and the portion we must borrow from others like China) since "we" don't have enough to pay our bills.
I noticed the Boy-king hasn't done anything about that…
Now tell me again…WHY did you elect him…??
Shut up, Herr Hitler…you had your chance, and you blew your brains out when you lost…
I'd like to see them reduce pay & benefits by 20% and keep their labor force . . . until the economy improves and there are jobs people can go to. Laying off 20% simply means they shift to unemployment wich will cost us a lot while the recipients get less than is they took the 20% pay cut.
The very best thing that could happen is that the domestic agencies go out of business. EPA, IRS, DOE, HHS, Interior, and a host of others.
The EPA, DOE and HHS can be shut down tomorrow, with no reason for lag time and huge savings for the taxpayers.
Interior can be shut down after returning ALL "federal" land to the states. Leave it to the people in each state to handle their resources as THEY see fit.
Turn all FBI resources over to the states- only one office is needed to keep stats and interstate criminal information, which it is well past time they shared with the states.
The IRS can be reduced to one office and a couple of clerks once we have the Fair Tax and/or a small national sales tax.
Abolish the ATF, DEA and other assorted "policing" alphabets. They haven't seen a situation that they can't make a LOT worse, and they cost too much.
Privatize the postal service.
Re-task NASA to devise ways in which we, and our allies, can better protect ourselves against our REAL enemies. One thing they can do- now that the Russians pretty well have charge of the space station (that WE paid for- thanks BO!), we need a way to prepare for when the ugly expensive mess comes crashing down…and it will.
Any agency or government "corporation" handing out "grants" for "research" needs to be investigated and we need to find out exactly WHY some "genius" thought we needed "research" involving shrimps on treadmills- if only that were the ONLY abuse the taxpayers had suffered…
so much to do…so much to do…
Were the U.S Postal Service set free and allowed to operate as a private company, I believe it could make a spectacular comeback. Consider for less than a buck you can be assured document delivery to any corner of the U.S.A., That's remarkable.
I elected him?
Just as the auto industry, the USPS should have gone through bankruptcy reorganization. However, the first goal and mistake of government is to protect unions before all else is even considered.
If the USPS needs a bailout, the fault lies with congress.
I used the figure of 37 cents, because that was the one on the cartoon here at the top of the thread. You use the figure of 44 cents. Now you gave me curious.
I honestly do not know the price of a stamp.
Now I'm really thinking.
I honestly do not remember when the last time was I was at the post office. I know I haven't been there this year, and I don't think I was there last year either.
Pretty bad, eh?
The USPS has a 5 billion dollar a year congressionally mandated FERS pre-funding payment started in 2005. That 8 billion accounts for the billions in pre-funding that the PMG says he can't pay. If he does pay it, that forces next month's default. The ball is in congress' court.
Clockwise, don't you know by now that just about every blog site takes a really dim view of sockpuppets?
TY pnipni.
It's amazing that the USPS, a legally protected monopoly, can't even TURN A PROFIT!
And with no legal protections from competition, Federal Express, Flying Tigers, UPS, DHL, etc., THRIVE!
"Neocon" says it all…a DIMocRAT "code word"…
Means everyone not getting with the Boy-king's program…whatever that is at this particular moment…
Nice try to absolve yourself for what you have done…
Neocon is what everyone uses to describe those vipers we have all come to hate. It is what unites Americans.
The Holy Grail of advertising is having something in a person’s hand. And yet the USPS priced many mailers to the internet. They also dropped the ball at being a one stop spot to pay all your bills on-line.
However, the medical marijuana community can legally ship their herb to customers despite it being a federally illegal narcotic. "Mailman dude…Where’s my package….oh yeah….are ya hiring bro?"
So says the MSM, who invented the term, and the meme…
Tool much…?
The USPS has talked about going to delivery 3 times a week – and I have no problem with that. I pay all my bills electronically and most days I open my mailbox and think, "Geez I walked over here for this?"
I drove by my future 'Re-Education' facility last week … just checking out the perimeter, lay of the land, vegetative cover, number of security fences, general size, distance to roads, how many roads, etc etc.
I encourage everyone else to do so as well, and soon !
About time he pulls in that evil capitalist PMG, hand him his head and appoint his own magician to wave a magic wand and report back "everything is okay."
If Congress canceled its money-laundering scheme (er got its grubbies out along with the union) the USPS could survive, probably scaled down and revamped. There are a lot of decent people working for USPS, though probably more than are needed, and they still do a pretty decent job of delivering things. But yes, the union ads are insulting to us yokels.
Hate to be really filthy here, but that's NOT the government's finger…
boy mr. bradley you are on a roll with good articles- keep up the good work.
Sure with a bit of duct tape, band-aides, a head transplant and maybe a heart bypass, the patient just might survive.
It's not the people. It's the system. When you judge success by how many you serve and how big your budget is, then we are destined to get what we see at the USPS, Food Stamps, Welfare, or any other government program, or department this is what we get.
The other day during conversation I mentioned that I really can't blame people who try to hide assets because of onerous and unjust taxation. We had just discussed the "tax the rich" mentality being propogandized by the current admin. Just a few years ago such words would have never come out of my mouth. I appreciate the honest comment and the wisdom shewn in recognizing it is not a good trend even if justifiable.
Suppose for a moment…just suppose…that every non-military branch of the government, every department across the board, cut their payroll by 20%. With non-military payrolls at 2.1 million employees, 20% means about 400,000 people.
That's about one month's average new job claims, if you look at Obama's record since he took office. So it's not as enormous as you think.
And, continuing our walk down Fantasy Lane, suppose the average federal compensation is $123,000 per year, which is an actual number. Do the math. That's $49.2 Billion per year. But let's don't stop there, now that we have a full blown psychotic break going. Consolidate the office space these 400,000 people require. Get rid of their fleet vehicles. Eliminate all of the inter-agency "liaison" positions, the money spent on (cough cough) "budgeting" and "strategic planning" and regulations and human resources.
(Take meds here and sit down until you calm down and can stand without nausea. Feel better now?)
Never frickin' happen. Not during golf season.
The location of Anchorage , Alaska is a perfect spot for such a camp. Mountains on one side, the inlet on the other, one road in and one road out . Easily controlled. Those with boats and airplanes may escape the military nearby, those without those modes of transport must find a way over the mountains or across the inlet or fight our way out the two main roads.
A few years ago, I also, would never have had those thoughts.
Now I'm like Seargent Schults on the old Hogans Heroes show.
I know nuthing……..
I'm from Texas.
I left there in the mid 90's, because there were getting to be few folks like me.
You forgot to mention the quick sand and mud in Cook Inlet.
Just go to any (pick-a-place) Post Office.
I really feel sorry for the clerks and carriers, they are just trying to make a living. They should have gone to UPS or Fed Ex.
GunWalker.
I dont see it, considering all the 3rd and 4rth class crap that gets jammed in the box every day.
Indeed pnipni, the fact of the matter is that the vast majority of federal EXECUTIVE regulations hold no true authority. Congress in not empowered to delegate law making to either the judiciary or the executive. All created within both of those branches is unlawful, unconstitutional and unjust.
We as a nation must come to terms with the difference between legal and lawful. It comes right back to commerce and the errant "case law" (aside from the foolishness that is "case law".
A good hard HONEST look and a couple congressional binding resolutions regarding the 14th Amendment would set this country free from the corruption cancer plaguing it and go a long way toward completing Reconstruction as it was intended.
That and the fact that if you are fortunate enough to have escaped, you need to actually have to have wilderness survival skills. City people with no such training are toast. And I would also mention that you can't just "disappear " into a large populace here, and you would be easy to track using conventional modern modes of travel, because we have a lack of roads.
Are you kidding me? Is it a park or state forest? What county?
How widespread is the knowledge that about her "her woods" speech.
I wish I was kidding. No, it's not a park or State forest. It is National forest and BLM land.
It was buried by the media.
Didn't know the county government could do that to federal land. I assume they didn't fence it away from the roads? If they did, how did they afford it?
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