ShaklesOfBigGov
Restore the Republic
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
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
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