General Discussion

hay rick

(9,737 posts)

68. The pre-funding mandate is the largest, but not the only problem facing the Postal Service.

Tue Mar 19, 2013, 08:31 PM

Mar 2013

Another problem is that they can not set their own rates. The cost of a first class letter here: $0.46. Great Britain: about $0.90 (currencies fluctuate in relative value, so postage in other countries should always be described as "about&quot ; Germany: $.075; France: $0.75.

If you walk into a post office lobby you will find no public copying machines, no fax machines, and very limited mailing supplies. The Postal Service is prevented from providing these obvious related auxiliary services.

In addition to the burden of having to pre-fund health care, the Postal Service also faces the additional burden of being restricted to investing those funds in government bonds. This restriction also applies to pension contributions. Thanks to this restriction, the Postal Service is forced to set aside much more to fund those benefits than an organization that doesn't face similar restrictions would.

Lifting any of these restrictions would be far more constructive in assuring the viability of the Postal Service than cancelling Saturday delivery. Saturday delivery is one of the few competitive advantages that congress has not taken away from the Postal Service. Removing that advantage would almost surely lead to reduced revenues in the long term.

More on the Postal Service as a business here:http://www.fool.com/investing/general/2013/03/04/how-the-postal-service-is-being-gutted.aspx

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Return to Sender: US Post Office actually has an operating PROFIT [View all] eridani Mar 2013 OP

Ben Franklin is smiling MannyGoldstein Mar 2013 #1

Navy postal clerk here madokie Mar 2013 #2

Me too! MannyGoldstein Mar 2013 #3

Excellent comeback! RC Mar 2013 #8

Awesome. mac56 Mar 2013 #25

Damned if that's not an epic smackdown! 11 Bravo Mar 2013 #39

"The $5 aspirin is to pay for all of the aspirins they give to uninsured deadbeats... MannyGoldstein Mar 2013 #43

+1 HiPointDem Mar 2013 #40

Manny.. sendero Mar 2013 #79

This whole "privatization" crap re: the post office REALLY makes me mad as hell. loudsue Mar 2013 #4

Amazing wyldwolf Mar 2013 #6

Thanks for considering that. loudsue Mar 2013 #9

What's more... wyldwolf Mar 2013 #12

True that. And, see, I hadn't thought of that! loudsue Mar 2013 #15

Don't throw 'em away. "no postage necessary..."gets mailed back to sender if it's from a hated corp. canoeist52 Mar 2013 #14

I do that on a regular basis. loudsue Mar 2013 #16

I'd like to again point out that you can get removed from their mailing lists They_Live Mar 2013 #21

No, you cannot. I have called, written, emailed, loudsue Mar 2013 #23

What? Credit card offers? They_Live Mar 2013 #80

not defending junk mail melm00se Mar 2013 #60

I am aware of that. And while that part makes sense economically, it does not loudsue Mar 2013 #61

Less work to do in the plants, fewer machines needed, Occulus Mar 2013 #78

MONEY mtasselin Mar 2013 #5

The Post Office DOES have competition from UPS and FedEx. RC Mar 2013 #11

The Post Office is truly something for us to be proud of. tecelote Mar 2013 #7

Kickin' this thread for more exposure. loudsue Mar 2013 #10

Without Congress forcing pre-funding of retiree benefits, Buns_of_Fire Mar 2013 #13

+ 1000 They_Live Mar 2013 #18

+1 daleanime Mar 2013 #19

Motley Fool recently did an evaluation of USPS as a business. hay rick Mar 2013 #17

It's the Republican discriminatory pension mandate: Bernardo de La Paz Mar 2013 #20

While it was a bad law, it was also completely bipartisan hack89 Mar 2013 #26

The Democrats thought they were helping the union. The Republicans knew they were stangling govt. nt Bernardo de La Paz Mar 2013 #27

So were the Dems fools, idiots or naive? nt hack89 Mar 2013 #29

Just a ploy to have a Private Equity Firm seize the USPS and plunder the pension fund. nt TheBlackAdder Mar 2013 #30

So the Dems were criminally complicit. I see. nt hack89 Mar 2013 #31

As usual, putting words in other people's mouths. TheBlackAdder Mar 2013 #32

Or perhaps you are completely wrong hack89 Mar 2013 #33

Even thought that's contrary to your Birther mentality, it's not surprising. TheBlackAdder Mar 2013 #34

I am the one rejecting a conspiracy hack89 Mar 2013 #35

Not to 'plunder', no sane person would telegraph that. But a PE privatization, definitely. TheBlackAdder Mar 2013 #38

you're naive. HiPointDem Mar 2013 #41

No - am not naive hack89 Mar 2013 #42

they may be stupid (though i think that's doubtful). the people who fund them are not. and HiPointDem Mar 2013 #45

Well, if it isn't hack89 -- lying about this issue yet again brentspeak Mar 2013 #56

So show me where Waxman was not a cosponsor hack89 Mar 2013 #59

Already explained to you numerous times brentspeak Mar 2013 #62

Here is the appropriate section from the House Bill as it was introduced on 7 Dec 2006 hack89 Mar 2013 #63

Yep, and that is why they want to destroy it. nt bemildred Mar 2013 #22

do any rightwingers use private postal services exclusively Buffalo Bull Mar 2013 #24

K&R Just another scheme to enhance corporate welfare at taxpayer expense. USPS gets no taxpayer Egalitarian Thug Mar 2013 #28

They do get taxpayer money. See next post. former9thward Mar 2013 #37

What HiPointDem said. I am consistently amazed at how many far right-wing distortions and Egalitarian Thug Mar 2013 #46

You said they do not take taxpayer money. They do. former9thward Mar 2013 #47

Just as I suspected, there is no point. You don't understand and don't want to understand. Egalitarian Thug Mar 2013 #50

Your grandmother had good reason to tell this to you. former9thward Mar 2013 #53

The Post Office DOES use taxpayer money. former9thward Mar 2013 #36

bullshit. the 'loss' was created deliberately by congress. HiPointDem Mar 2013 #44

Your link does not show any misinformation on my part. former9thward Mar 2013 #48

the link shows how the 'loss' was created by congress. but you'd have to read the article to HiPointDem Mar 2013 #49

The pension payment has not been paid. former9thward Mar 2013 #51

Postal Service pensions are OVERFUNDED. hay rick Mar 2013 #52

That has NOTHING to do with it. former9thward Mar 2013 #54

You might want to stop letting your dog use the computer. hay rick Mar 2013 #55

His dog probably reads better than he does. n/t brentspeak Mar 2013 #58

The loss was created by everyone on DU. former9thward Mar 2013 #65

as i said, you're a font of disinformation. and not only on this topic. HiPointDem Mar 2013 #67

Looks like I'm going to have to pull up old links on former9thward brentspeak Mar 2013 #57

The funding payment is $5.5 billion a year. former9thward Mar 2013 #64

Reading and reading comprehension are not your friends brentspeak Mar 2013 #69

Not only is math not your friend, it is your enemy. former9thward Mar 2013 #72

There are elementary school children with more brain power than you brentspeak Mar 2013 #73

No they are not. former9thward Mar 2013 #74

There are no gov't agencies or private co's which prepay for unhired future retiree health benefits brentspeak Mar 2013 #75

There was an accounting rule change in 1990 which caused companies to pre fund retiree benefits. former9thward Mar 2013 #76

Hey, Brainstem - I wasn't the OP brentspeak Mar 2013 #77

The pre-funded payments maybe the bulk, but according to Donohoe they still would have lost $3B tammywammy Mar 2013 #66

The pre-funding mandate is the largest, but not the only problem facing the Postal Service. hay rick Mar 2013 #68

K and R senseandsensibility Mar 2013 #70

Morning kick senseandsensibility Mar 2013 #71