The following is a guest post by Joseph Hall.
It’s Time to Restructure the US Postal Service.
With the UP Post Office on the verge of collapse, it’s time to seek the option that will provide the best chance for survival. Friends of mine in the Postal Service love the generous benefits but acknowledge the system is hopelessly wasteful and broke. The biggest culprit is the mandatory prepaid pension system, which saps enormous funds from the system, leaving very little money for the day to day operation of a top organization.
In a 2011 article, “11 Things You Should Know About The U.S. Postal Service Before It Goes Bankrupt,“ in Business Insider, writer Devin Leonard details the major struggles of the service. His review discusses very serious issues, such as: its huge debt, the pension plans provided and the volume of business within the postal service. In all, the management has failed to lead, allowing the postal union to make unsustainable demands, while borrowing over $12 billion from the Federal Reserve just to remain solvent. The only solutions appear to be bankruptcy or a privatization of the service.
Ultimately, it will be a huge fight for survival. The powerful postal union will demand to keep the pay and compensation system approved last March. The progressives have already fired up their propaganda machines, proposing that the postal service deserves to survive as is.
The president may choose to make this a reelection issue in an attempt to embarrass the Republican House.
In the communist Workers World, “Stop the destruction of the postal service,” the article makes the assertion that opponents of the postal service are painting a picture which is totally false in an attempt to shut down a fully functioning service. The writer proclaims,
““The spin is in full swing,” said Johnnie Stevens, coordinator of Community Labor United to Save Postal Jobs & Services, “to spread lies that the [U.S. Postal Service] is broke in order to justify layoffs, post office closings and union busting when the current moratorium expires May 15.”
“Any reporter spending two minutes to research the claim that USPS is broke should honestly report this is a lie,” said Anne Pruden, retired Service Employees 1199 member and coalition organizer. “Instead, they are parroting USPS lies. Raising stamps to 50 cents is meant to falsely convey that USPS has no money. Meanwhile, they are not raising the very low corporate [postal] rates.”
The labor movement is committed to save the gasping system by demanding someone else take the blame and move forward, expecting the postal service to be bailed out.
Taking the conservative view is Biggovernment.com writer, Jason Hart, in, “USPS: Neither Snow nor Rain, nor Bankruptcy,”
“Unfunded state pension liabilities contribute to an estimated $4 trillion in debt, and leftists blame the states for not hiking taxes to cover Big Labor’s demands. With that in mind, Sherrod Brown’s big idea is to stop requiring USPS to sock money away in advance? This is a Progressive solution through and through – we’re running out of cash, so stop saving and spend, spend, spend.
Not everyone agrees USPS could be “saved” by fudging accounting rules. Take, for instance, the Postmaster General:
He also said, “Roughly 25,000 out of our 32,000 Post Offices operate at a loss” and that thousands of post offices generate less than $20,000 in annual revenue yet cost more than $60,000 to operate, and many of these unprofitable locations are a few miles away from another post office. He bemoaned the response to even the slightest effort to close any Post Office, as well as interference in other proposals to address the USPS deficit.
Who has a better grip on USPS finances: the Postmaster General, or Sherrod Brown and Socialist Bernie Sanders?
The future of the US Postal Service will either result in restructuring through bankruptcy court, or another national bailout of a corrupt system of the federal government. The outcome could impact our future financial success.
Watch Fox News video: “U.S. Postal Service Near Default”
Contact your US Congressional representative, we do not need a bailout, we do need restructuring and privation of the insolvent postal service.
Submitted by: Joseph Hall, Daymar Institute, Health Care, Law, General Education