Government Failure?

Discussion in 'Politics' started by ShaklesOfBigGov, Dec 7, 2011.

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Should the Federal Government look to "bail out" the United States Post Office?

  1. Yes. We need to do whatever we can to save it.

    3 vote(s)
    16.7%
  2. No.The Post Office needs to be seriously restructured first.

    6 vote(s)
    33.3%
  3. No. It's too costly. We need to disolve it, and allow the private sector to take over its role.

    9 vote(s)
    50.0%
  1. ShaklesOfBigGov
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    ShaklesOfBigGov Restore the Republic

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    There was a time in our nation's history where the post rider was the most familiar and best loved form of transporting mail. That personal touch and connection with the post rider would always remain on the hearts of those that anticipated their arrival. That was until the discovery of the locomotive, and America's new found opportunity to travel aboard the new transcontinential railroad. Now that familiar gallop through the streets that was a warm welcome to so many, was all but a distant memory. A period of time that was suddenly lost, a fallen victum to an evolving age.

    Today we are faced with another pivotal moment in history, where an unbelievable EIGHTY percent of the Post Offices in America are losing money. A mammoth organization whos reach is greater than that of the retail markets Walmart, Starbucks, and McDonalds combined. Yet with all the discussions surrounding government debt today, a key issue that seems to usually resurface on the minds of Americans and in Congress: Is the United States Post Office a government agency whos time has finally come? Is it merely the advancement in technology surrounding emails that's the issue behind the many problems it faces, or is it something more deeper and illusive? Are pensions and benefits the true achilles heel behind this government giant's demise?

    Back in 2006 Congress passed what is to be called the PAEA Act, which mandated pre-payment of Health Care be set aside for those Postal workers who would eventually reach retirement. With the years that followed the fiscal budget of 2007 revealed retired health benefits to be at a loss of $5.1 Billion. The following year saw only a moderate improvement in retirement costs with the loss of $2.8 Billion, only to plummet once again in 2009 and 2010 ($3.8 Billion and $8.5 Billion consecutively). To compound matters, the current Federal law forbids the closing of Post Offices solely for economic reasons. Even still, the problems that face this organization doesn't appear to end there.

    Total benefit and labor costs for a Government Postal Service makes up 80% of its total operating expenses, compare that to 53% and 35% for private sector companies UPS and Fed Ex respectfully. Also the private sector provides consumers with additional benefits, such as the ability of tracking their own packages, compared to The US Postal Service which includes such provisions for an additional cost. With the only hope for a solution resting in the form of increasing government stamps to try and generate revenue, over cutting costs, just how much "pension burden" is the Federal Governement willing to hold onto before the system collapses? President Obama took his own position by inserting a proposal into the 2012 budget, that would absolve the United States Post Office from its responsibilty of providing for its retirement pensions under the PAEA Act. That shortfall would be handed over to the American taxpayers towards an already growing national debt.

    Should we be waste taxpayer dollars, in an already bad economy, to try and save workers of the United States Post Office?



    SOURCES:
    11 Things You Should Know About The U.S. Postal Service Before It Goes Bankrupt
    Econbrowser: U.S. Postal Service pension funding
    And Now The U.S. Postal Service Is About To Go Belly Up
     
    Last edited: Dec 7, 2011
  2. Dragon
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    Dragon Senior Member

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    Electronic communication is replacing the mail, except for delivering packages. That explains all the stats.
     
  3. Baruch Menachem
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    Baruch Menachem '

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    All they deliver anymore are ads, catalogs and junk. It was a grand institution, but so was the horse cavalry.
     
  4. 8537
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    8537 Senior Member

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    The post office is merely a subsidy for bulk mail firms at this point. Sad to say it's probably time to begin phasing out its services.
     
  5. occupied
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    occupied Gold Member

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    Mail delivery is of such strategic importance that if the post office were ever dissolved there would have to be a mechanism in place to rapidly nationalize companies that delivered instead of the post office. The mail must go through no matter who is carrying it.
     
  6. BillyV
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    BillyV Antidisestablishmentarian

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    No, we should not try to save the workers of the US Post Office. However, the post office needs to continue to function because the US government has to have a way to send notifications to it's citizens; that's not something that can easily be shifted to the private sector. The USPS is somewhat of an anachronism, but it should continue at a greatly reduced size, and with many less delivery days. No Saturdays; what's the point? Maybe 5 days in profitable (read: urban) areas, less in rural areas. The problem is that the representatives from the affected jurisdictions will not easily give up these services that will reduce employment in their districts.
     
  7. eflatminor
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    eflatminor Classical Liberal

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    The Post Office is an enumerated power, so the Feds have a duty to provide for it. Nevertheless, I believe the Post Office has run its course. Technology has done away with the need for paper mail and we certainly have the infrastructural to allow the private market to deliver traditional mail, in whatever form it takes. I say Congress should amend the Constitution to do away with the institution.
     
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  8. BlindBoo
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    BlindBoo Gold Member

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    It's a subsidies relic of a bygone era. Time to phase it out.
     
  9. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Post office will always be there but needs serious restructuring of it's mission
     
  10. eflatminor
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    eflatminor Classical Liberal

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    Why not? Which Federal documents that must be sent to citizens could not be handled by private delivery companies?
     

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