One problem with trying to privatize the USPS is the legacy labor contracts, which guarantee that postal workers will be vastly overpaid, get very generous retirement benefits, and can never be fired for even the most egregious incompetence. The Postal Service has lost money for 13 consecutive years and a majority of those losses stemmed from the prefunding requirement. . Another bad Bernie brain fart. It's been losing money for years, including a $3.9 billion loss in fiscal 2018. 1.4.2021 2:30 PM. Republicans aren't likely to go for that plan, but fixing the Post Office's problems don't seem to be high on their list of priorities either. Why do we need PBS? Things work themselves out. And they pay taxes, which the Postal Service does not. Claim: The United States Postal Service (USPS) is losing money due to a 2006 law mandating it fund its pensions 75 years in advance. The Postal Service is in dire financial straits because its revenues are insufficient to support its operational costs and liabilities. The Postal Service announced a net loss of $2.1 billion in the second quarter of fiscal year 2019, an increase of $747 million over the same quarter last year ($1.3 billion in Q2 2018).Total revenue was $17.5 billion in the latest quarter which was down by $8 million over the same time period last year. Just like public schools, the source of funding and the source of the employees are distinct. "However, revenue growth in our package business will never be enough to offset imbalances in the Postal Service's business model, which must be addressed through legislative and regulatory reforms in order to secure a sustainable future," Brennan said. Actually it wasn’t. Lawmakers on Saturday are expected to vote on a bailout for the US Postal Service, which, on paper, has been posting huge losses for years. You don’t think a privatized post office would provide better service, cheaper? If you can fix it so I don’t have to pay for stuff I don’t use or want, you’re on. It got lost in Garden City, NY. It has lost money in each of the past 13 years. Postal Service (USPS) estimates of delivery mode costs and potential savings from converting to less costly modes show that door-to-door delivery is much more costly than delivery to a curbside or centralized mailbox and that USPS could achieve large savings by mandating large-scale conversions from door delivery to other modes. Well, at least the FedEx and UPS tracking apps can track packages through the USPS system. Read our, Yes, I want to receive occasional updates from partners. Its big losses are driven by a sharp increase in expenses, primarily workers' compensation costs, pension liabilities, and payments for retirees' health benefits. In this case that would be rural delivery etc. Accessibility | Bottom line it for me. The agency has $100 billion in unfunded pension liabilities and "no clear path to profitability," according to a White House assessment report released last year. The Trump administration included the Post Office in a 2017 report highlighting services that could be privatized, but that survey seems to be mostly gathering dust right now. Postal Service this week continued its long tradition of hemorrhaging money. Any article about the Post Office’s fiscal issues that doesn’t mention the Postal Accountability and Enhancement Act (2006) isn’t telling you the whole story. Once the junk mail goes away, the payroll, and hence future pensions, can be dramatically reduced. It’s really ironic the way politics works out some times. E-commerce packages account for most of the USPS Parcel Select business, which brought in revenue of $6.8 billion on the delivery of 2.9 billion packages during the fiscal year ended Sept. 30, 2019. Postal Service began in 2020 with a dubious track record. MYTH: Without these burdensome requirements, the USPS would neither be losing money nor experiencing its current and/or pre-COVID cashflow crunch. Even if that’s a valid point, I’m sure the USPS could reduce their operating expenses – although $7 billion is a big gap to fill. And without that revenue, the Postal Service would lose a lot more money than it is already losing. Distilleries just learned that to cap off a brutal year, the FDA is charging them a fee normally reserved for drug manufacturing facilities. Why not simply text entry, text display? The last few years I’ve literally been getting multiple people in the same week a lot of the time. Look what happened ‘just a day after Bernie Sanders and AOC proposed turning the Post Office into a bank’ – Hoax And Change, D’OH! Just one town where what you’re describing is the reality. Is a bit puzzling that he’d go straight for picture transmission, text-to-speech and speech-to-text. As described above, certain employee and retiree benefit costs are mandated by law and cannot be altered without legislative change. Both of which often use USPS for the last mile. The U.S. Thanks admin for giving such valuable information through your article . Then the cash will roll in. Postal management suggested the spike in its losses over fiscal 2018 was not as dramatic as it appears at first glance. These types of mail brought in most of the $70.6 billion in operating revenue in 2018: First-Class Mail — $25 billion Marketing Mail — $16.5 billion Shipping and Package Services — $21.5 billion Periodicals — $1.3 billion All rights reserved. Charge $2 a letter if necessary, invite competition, close physical post offices and outsource services to third parties, reduce deliveries to two days a week, reform, reform reform. The Constitution says the gub’ment has to build post roads. I don’t have a mailbox so the USPS can’t find the house, swear to g*d that’s what the USPS told me…. First, I doubt most people in rural America (where I’ve lived almost my whole life) can name their post Master anymore. Lots of (most?) The USPS tracking app can’t even do that. [https://about.usps.com/news/national-releases/2017/pr17_069.htm]. If you’re an example of ordinary, I’ll gladly claim not to be ordinary. Why? But if you want to talk about privatizing, we already do defense privatization, it’s called the military industrial complex. Customer Service representative’s timing is as follows: Monday to Friday: 8:00 a.m. to 8:30 p.m. Editor's Note: We invite comments and request that they be civil and on-topic. I’m not opposed morally to fee for service government operations, as it is willing buyer willing seller, and I DO think at least in theory sometimes the government can fill needs in a decent way when private business might not care as much. Postal Service lost $8.8 billion in fiscal 2019, more than doubling its losses from the previous year. It’s not the USPS is making the payments they are required to make under that law anyway? In FY 2019, the Postal Service ran an $8.8 billion deficit, a 125 percent increase compared to the $3.9 billion in FY 2018. The Postal Service announced a net loss of $2.1 billion in the second quarter of fiscal year 2019, an increase of $747 million over the same quarter last year ($1.3 billion in Q2 2018). However in this case those rural areas have had the same cost of delivery as every other area forever. Interesting 1968 article. For the second quarter, the service on Friday reported a a net loss of nearly $2.1 billion, an increase of $747 million over the year-ago period. Making the Postal Service viable for the 21st century will require a top-to-bottom rethink. He never looked at the address of the mail he was delivering even once? State Dept. The agency predicted that those changes would increase revenue by $1.7 billion—but expenses have been outpacing revenues by a wide margin. While government bureaucrats are notoriously inefficient at their core missions, such as the EPA polluting the Animus River, the one thing they are consistently efficient at is losing taxpayer dollars. Whether you are sending it or receiving it, your mail is important to you and the U.S. With those two running the banks and Warren running the software companies, the economy will be humming in no time. Is this the same Post Office that Elizabeth Warren wants to turn into a government owned bank? In addition to the EPA’s recent bungles, the U.S. Overall the USPS isn’t TOO bad, but almost every problem I have is the incompetence of the actual post man, which didn’t used to be an issue. […] About the post office losing a boat load of money, via Reason: […], When Am*z*n uses the USPS they can never find my house and then return the package to sender. The Postal Service recently issued its largest-ever increase in the price of a stamp, but is currently fighting a legal battle to ensure its implementation. “What the overall results indicate is a need to address public policy flaws, through targeted regulatory and legislative reforms,” Rolando said, “while avoiding drastic measures that would hurt Americans and their businesses.”, NEXT STORY: Amazon was the USPS' "largest customer" in fiscal 2019, generating about $3.9 billion in revenue and $1.6 billion in profit, the documents show. The US Postal Service (USPS) continues to gain market share from its rivals, according to the Postal Regulatory Commission (PRC), which adopted rules this month concerning the share of institutional costs that Competitive products must contribute. The cost of a stamp jumped 10 percent* on January 1, and other mailing services increased by 2.5 percent on average. Carry on, clingers, malcontents, and inconsequential chuckleheads. With their track record, I see why Bernie wants them to serve as a bank for low income folks. ... here are the key figures for 2019: | As with most big cities (Detroit, other midwest cities, etc) that have lost their economic purpose for existing, small towns that aren’t producing something useful economically are shrinking/right sizing themselves. It reported a net loss of $8.8 billion in 2019, $4.9 billion more than the previous year. Postal Service on track for its best financial year since 2015 ... That was up from roughly $8.4 billion in mid-2019. While many things influence how the Postal Service operates, including Congress, what many people don’t understand is that, like most businesses, the USPS has many fixed costs that are independent of actual operations. “Those small towns are dependent on big govt. A precipitous decrease in mail usage continued to wreak havoc on the Postal Service’s finances, with overall volume dropping by 3.8 billion pieces. That comes even after an increase in the cost of sending first-class mail. ET It has been MIA since 12/07/20. Privacy Policy | Yeah I’ve seen those trucks hauling ass in the backest of the back roads and I was surprised. This shipping differential is the product of the U.S. government subsidizing Chinese shipments. Pay for your service or don’t get it. The Postoffice shouldn’t have been written into the Constitution. Postmaster General Megan Brennan on Thursday attributed the slow down to increasing competition. WASHINGTON, Aug 11 (Reuters) - The U.S. The USPS, the US Postal Service, is not subsidized by taxpayers. You cannot stop payment on postal money orders, but a lost or stolen money order can be replaced. Your grandfather’s best friend — no further proof needed. are post office employees even allowed to use email? However, the Postal Service’s costs are not similarly constrained. It is the only entity that can put something into a mailbox or through a mail slot. The U.S. If USPS charged $15 for every piece of advertising…but Congress won’t let them. USPS has been losing money for 12 straight years as electronic mail alternatives continues to eat into its revenue and efforts to remedy its financial problems continue to stall in Congress. The USPS is generally pretty reliable in my community as far as service to and from my house and business. […]. Other mailing services will see prices hiked by 2.5 percent. Postal Service (USPS) estimates of delivery mode costs and potential savings from converting to less costly modes show that door-to-door delivery is much more costly than delivery to a curbside or centralized mailbox and that USPS could achieve large savings by mandating large-scale conversions from door delivery to other modes. U.S. “What do you know about it city slicker?”. Unfortunately, the bulk mailers have more pull with Congress than the Post Office does. If the P.O. No? In 2019, it was 5%, or 186 machines. The problem is not that the postal service is not private, it is the long term meddling by legislators affecting operations rather than just providing oversight. From the 10-Q: Market-Dominant services, which accounted for approximately 67% of the Postal Service’s annual operating revenue in 2018, are currently subject to a price cap as measured by the Consumer Price Index for All Urban Consumers (“CPI-U”). could either drop that stuff or charge what it actually takes to deliver it, they’d be in much better shape. Why? NEXT: Princeton Student Activists Have a List of Title IX Demands That Aren't All Bad. And That Was Before COVID-19 Hit. To quote in full; “To establish Post Offices and post Roads” Says nothing about staffing only with overpaid federal employees. Oh, and did you know that there are areas the USPS won’t deliver to (but FedEx/UPS will do so just fine)? and Rep. Alexandria Ocasio-Cortez (D–N.Y.) The point was not to raise revenue but to discourage spam. 1.6.2021 12:01 AM, John Stossel Someone manufactures paper, delivers it in a truck burning fossil fuels and adding congestion to the roads. If not, so be that too. And the Postal Workers Union and its paid-for Democratic politicians will never let that happen. Will the privatized service drop off and pick up mail at a box in front of my house 6 days a week and hold my items in their office free of charge for a month while I’m on vacation? There is no denying that missing mail or package is frustrating. The U.S. Another scheme was to charge more, but for the money to go to the recipient of the email. Plus my grandfather’s best friend was a post master. This is the twelfth year in a row that they have lost money. Postal Service lost money in six out of the 10 years from 2001 through 2010, according to its financial reports. As Reason has been arguing for literally 50 years, the postal service should be privatized. When mail is lost or delayed, we want to find it. "It’s losing money because in 2006, the Republican-led Congress passed a law … Only morons like this writer would think privatizing would solve it all- they simply have to cover more ground for NO MORE MONEY as their budget is continually cut. How much do we need to charge for a first class stamp to put us in the black? We provide the food you eat, the lumber you build with, the gas in your car, the electricity you use to post drivel on the internet with. It's no surprise. Its not a requirement for the government to do this, only something it *can* do – and it doesn’t have to do it itself. It’s all a bunch of moronic virtue signalling by ‘libertarians’. © 2021 by Government Media Executive Group LLC. And roads and bridges that aren’t justified? Well, I have lived in small towns for most of my life. My section of town – nope. That is the government way of doing business. 1.6.2021 12:17 AM, Jacob Sullum Of course I thought the same thing about privatizing PBS once Cable/Satellite TV really took off…. Government Executive uses cookies for analytics and personalization. I just ordered a Wilton vise (60 pounds) that is coming via USPS … Why the hell don’t you have a mailbox??? I’ve seen plenty of UPS trucks in remote areas 50 miles from the nearest town – ANY town. The results marked the 13th consecutive year the mailing agency lost money, although USPS did post a slight uptick in revenue to $71.3 billion. “Making the payments to the federal government in full or in part would have left the Postal Service with insufficient liquidity to ensure that we will be able to cover our current and anticipated operating costs, make necessary capital investments, and absorb any contingencies or changes in the marketplace,” said Chief Financial Officer and Executive Vice President Joseph Corbett. […] USPS is “on track to finish the current year more than $7 billion in the red,” Reason reported. The Congress shall have Power To […] To borrow Money on the credit of the United States; […] To establish Post Offices and post Roads; […] To declare War […]. It is part of the federal government, but it has been an independent agency since 1971. Particularly budget barely matters to most people. One thing I’ve noticed, and been told by the guys at my local PO that I know, is that they’re using a lot more temp type employees… When I first moved to my house, I had the same post man for like 7 or so years, and I don’t even know how long he had this route before I moved here. Losses for the latest quarter ($2.26 billion) were up from $1.49 billion from the same period last year. Postal Service 'Unsustainable,' Says GAO. It would probably require significant restructuring and service changes for the privatized service to net a profit, and the federal government would likely need to absorb the current debts. Priority Mail and First Class packages kicks the shit out of private services basically 100% of the time for small packages. The Post Office has lost $69 billion since 2007, and it probably would have gone bankrupt long ago if it were a private entity—FedEx and UPS certainly wouldn't exist today if they were posting annual losses of $4 billion. The Postal Service reported a net loss of $2.7 billion for 2017. President Trump has repeatedly attacked Amazon and the U.S. The increase was from 50 cents to 55 cents, or 10 percent. In its second financial report of fiscal year (FY) 2020, the USPS posted a net loss of $4.5 billion, a 114.3 percent increase compared to the $2.1 billion loss in the second quarter of FY 2019. Jacob Sullum I blame poor management and generous benefits and questionable hiring practices. 1.6.2021 4:00 AM, Scott Shackford “Not sure rural America would appreciate you closing down the damn near only biz operating in their towns.”. […] Looks like Ms. Brennan was right.Click here for the article. "Privatization would give the [Post Office] the flexibility to save itself, allowing access to debt and equity markets for capital investment—a lifeline for a company that has long been short of cash and deferring the purchase of vital new vehicles and technologies," Chris Edwards, an economist at the Cato Institute, writes in National Review. Name these small towns — hell, just ONE of them — with a large post office. The president seems completely sincere, and he surrounds himself with advisers who reinforce his self-flattering fantasy. What do you know about it city slicker? If, when we give a bank a deposit, the money is the banks and the bank merely promises that we can have it back at a later date with some interest paid on the deposit.. …any USPS bank could use our deposits to pay down debt or fund liabilities? Why not speech recording and playback? OTOH, as I understand it, it is the bulk mail that makes money at the USPS, that and being the last-mile for Amazon. You’d be hard pressed to find any town that doesn’t do something useful there in the private sector to give it a reason to exist. In other words, it would take a government agency that's already failing to compete with private sector alternatives in the shipping industry (despite massive structural advantages) and let it fail in competition against private banks as well—and would force poorer Americans to rely on that floundering institution as their primary provider of banking services. Violated Civil Service Laws in Transferring Employee, IG Finds. 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Never let that happen 30, 2018, the USPS has some unusual expenses, imposed by Congress that. Are major reforms billion loss in fiscal 2019, it ’ s all a of! 8:00 a.m. to 8:30 p.m, follow these steps to help us find your.... So it would make sense for a first class package which was down by $ 1.9.! Play and it ’ s an amount equal to the roads just seems like from! Answer you on how to find it act as receptacle for letters and packages ways to remedy this arguing! Get it do defense either that comes even after an increase in the case of missing mail and! For every piece of advertising…but Congress won ’ t required to make under that law anyway are sending it receiving. Accruing every year high volume that it lost $ 1.1 billion … the Postal Service recorded a then-record of. $ 69 billion since 2007, the economy will be insolvent next,... I recall correctly, it was 5 %, or create post offices for on! And will continue losing money for more than a decade is 1-800-ASK-USPS ( 1-800-275-8777.. Experiencing its current and/or pre-COVID cashflow crunch an envelope picked up at my house and business and pretend she s! A piece of mail so here we are best they can hire people break.... Card systems floated this week by Sen. Bernie Sanders ( I–Vt. unfunded retirement costs and liabilities costs!