USPS loses $16 billion. Raises all around!

[Samson]

nope, it's illegal samson....no one can put anything in to your mailbox but the postal service.... you can't even put an invitation or thank you note in your neighbor's mailbox....that's breaking the law.

OK then you know why I called it a monopoly, which is not to say its a bad thing, except for the fact that it is operating much less efficiently than a monopoly is supposed to run.

The USPS claims this is because they are mandated to pay for the incredibly expensive Federal Health Care insurance plan for their employees and retirees costing $11B of the $16B deficite (still leaving $5B)

I counter this claim by wondering: Why not simply raise the price of USPS postage? As a monopoly, its not as if anyone has a choice other than to pay OR SIMPLY NOT USE THE SERVICE.

And this was my point in the beginning of the thread: If the USPS raises the price for its service, then more people will not use the USPS. People have many other less expensive alternatives they can choose other than the USPS.

This is the definition of obsolescence.

I'm afraid Ben Franklin would agree: Send a freakin' Email, Text, or pay for UPS/FedEx delivery.

For a lightweight package, USPS is 3 times less in price than UPS....as far as I am concerned, the post office can increase their prices 100% and I am still saving by going with the USPS.....
....

Could it be that you're individual investment in USPS's doubling of rates might be offset by the hoards of people that discontinue use?

Otherwise, please explain why USPS does not raise rates.

 

[candycorn]

...but there would have to be strict price controls involved.

Can you point to a single example of where central price controls have worked?

No.

Stated differently, when have central price controls produced better results than free people making voluntary decisions in a free market?

I don't think it has.

Lastly, who are you going to steal from to supplement the cost of delivering mail below the rate a free market would charge?

No one.

As we wind down the post office, we take the money we were spending on letter carriers, mail sorters, clerks, etc... and subsidize UPS or whomever.

Your statements make sense. However, unlike price controls on other products, the US Mail system has some legal restrictions. The proxy statements, for example, that I receive must be mailed by a certain day. I doubt you want to force a company like AT&T to spend $5 a piece to mail millions of proxy statements; then force the shareholders to spend $5 a piece to mail them back.

Legally, the rules would have to change to allow all of it to be done online but that is decades off in the future if it ever happens.

Me, personally, have rejected the urging of all of my creditors to go paperless. I like getting a bill in the mail to show when a payment is due. I have had my computer crash before and have been without internet for days at a time. When I lived in the South, we had hurricanes that did the same thing--eliminated electronic alternatives.

I would imagine that there would be a great many areas where UPS and FedEx would rather not go to for a flat rate which is what would be required anyway.

 

[candycorn]

nope, it's illegal samson....no one can put anything in to your mailbox but the postal service.... you can't even put an invitation or thank you note in your neighbor's mailbox....that's breaking the law.

OK then you know why I called it a monopoly, which is not to say its a bad thing, except for the fact that it is operating much less efficiently than a monopoly is supposed to run.

The USPS claims this is because they are mandated to pay for the incredibly expensive Federal Health Care insurance plan for their employees and retirees costing $11B of the $16B deficite (still leaving $5B)

I counter this claim by wondering: Why not simply raise the price of USPS postage? As a monopoly, its not as if anyone has a choice other than to pay OR SIMPLY NOT USE THE SERVICE.

And this was my point in the beginning of the thread: If the USPS raises the price for its service, then more people will not use the USPS. People have many other less expensive alternatives they can choose other than the USPS.

This is the definition of obsolescence.

I'm afraid Ben Franklin would agree: Send a freakin' Email, Text, or pay for UPS/FedEx delivery.

For a lightweight package, USPS is 3 times less in price than UPS....as far as I am concerned, the post office can increase their prices 100% and I am still saving by going with the USPS.....

USPS pays their CEO about a half a million with bonuses....UPS pays their one CEO $9.5 million....they gotta get that money to pay him from their customers...along with all the other multi million dollar salaries of those at the top....

small businesses would be hurt greatly if there were not a post office to deliver their packages at a reasonable rate and customers would be hurt as well with much higher prices for the products they buy or the shipping they pay....

The mail-order pharmacies that several of our patients rely upon would have to raise their prices. Patients already of fixed incomes will have even less money.

We still need to phase out the Post Office. It isn't built for the times we live in and there are other alternatives. At the same time, we do need to address the "lifeline" aspect of the USPS during the phase out.

 

[Staidhup]

So why not privatize the entire operation, license stamp printing, terminate the employees, lease the buildings and equipment, let the government bail out the pension plan and let the private sector have a shot at the monopoly, can't do any worse. Just think, now the same clowns in government will be running your healthcare system. Lets hope they do a better job.

 

[Care4all]

OK then you know why I called it a monopoly, which is not to say its a bad thing, except for the fact that it is operating much less efficiently than a monopoly is supposed to run.

The USPS claims this is because they are mandated to pay for the incredibly expensive Federal Health Care insurance plan for their employees and retirees costing $11B of the $16B deficite (still leaving $5B)

I counter this claim by wondering: Why not simply raise the price of USPS postage? As a monopoly, its not as if anyone has a choice other than to pay OR SIMPLY NOT USE THE SERVICE.

And this was my point in the beginning of the thread: If the USPS raises the price for its service, then more people will not use the USPS. People have many other less expensive alternatives they can choose other than the USPS.

This is the definition of obsolescence.

I'm afraid Ben Franklin would agree: Send a freakin' Email, Text, or pay for UPS/FedEx delivery.

For a lightweight package, USPS is 3 times less in price than UPS....as far as I am concerned, the post office can increase their prices 100% and I am still saving by going with the USPS.....
....

Could it be that you're individual investment in USPS's doubling of rates might be offset by the hoards of people that discontinue use?

Otherwise, please explain why USPS does not raise rates.

I don't think they should really raise rates 100%....my point was that if they did raise their rates on lightweight packages 100%, it would still be less in price than what UPS charges me for lightweight packages.

And yes, it could hurt small businesses greatly, at a time where online businesses mean more than ever, for the many that have been laid off and are trying to make ends meet through their online business and for the ones like me, who are trying their hand in owning a shop, while still being able to stay at home.

Sales could, and more than likely would, drop for everyone who ships light weight packages because people could not afford to pay the shipping prices. And this would cut back on sales for USPS as well.

By all means, I do not believe the USPS is perfect...I do believe we need more reform and their pricing could be a part of this reform....

One thing that they could do that would help all of us who sell online is to stop raising their prices once a year....it is very cumbersome and extremely unproductive for all the millions of online shop owners to have to spend the time to go through and raise their shipping costs listed online for each of the 150 to 500 items they carry once a year....it probably costs more for each of these small business owners in their hourly time spent on doing this than it does for the total shipping cost hike.... The Post office should just raise the price more in one sitting and allow those prices to stay for 2 years, instead of nickle and dime-ing it.

I don't believe the US Postal Service should be eliminated, but I do believe they could improve upon an already fantastic service. and even if I did not have an online business, (which is only a year old) I still believe USPS is necessary....

Changing it to the private sector would cost us tax payers much more and there would be no competition to bring the services down in price as others seem to think....6 separate boxes in front of one's house is not really ideal nor liked by most....it'll end up being only 1 carrier for 1 regional area at a time, with no competition...and from my experience that leads to higher prices and not lower prices....and price is key to this kind of public service....and I don't mind paying for it, I just don't want to pay for it plus pay for a $9.5 million dollar a year CEO and a company's profit.

And as candycorn, I have had major problems with the internet....shoot, we did not even get broadband to my region, and a very slow land line broadband at that, until a year and a half ago....my state is one the continental States in the continuous USA that still does not have Electric lines run to every town....in the northern part of the State they have to use generators, let alone them having internet service or even phone service via a land line. I've been a victim of internet theft and I pay NOTHING online....I like getting my bill in the mail and paying by check, at least until internet security becomes better....and I like the protection and security that USPS gives.

 

[candycorn]

So why not privatize the entire operation, license stamp printing, terminate the employees, lease the buildings and equipment, let the government bail out the pension plan and let the private sector have a shot at the monopoly, can't do any worse. Just think, now the same clowns in government will be running your healthcare system. Lets hope they do a better job.

The mail, unlike lets say UPS, is a lifeline for many who pay bills through the mail, get their meds that way, etc. Also, there are several regulations that force parties to communicate via the mail such as proxy statements, 10K's, etc... Strict privatization would drive the costs of these communications up substantially.

 

[Harry Dresden]

So why not privatize the entire operation, license stamp printing, terminate the employees, lease the buildings and equipment, let the government bail out the pension plan and let the private sector have a shot at the monopoly, can't do any worse. Just think, now the same clowns in government will be running your healthcare system. Lets hope they do a better job.

unless you are one.....right.....go **** yourself....