So the post office is thinking about ditching Saturday mail service to save money. Is this enough? How about delivering less than that? What is so urgent about anything arriving by snail mail?
Making USPS profitable
- Thread starter Seatacus
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Ms Tree
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- Jul 13, 2010
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I don't thinking so much a matter of 'importance' as it of the fact that UPS and FedEx do not have to serve all locations. USPS does. There are locations that only receive mail and packages via USPS. They are the ones who would have to do with out and this is the main reason why the USPS is not profitable.
southwind
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KCFlyer
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For all intents and purposes, it is. The USPS has not directly received taxpayer-dollars since the early 1980s with the minor exception of subsidies for costs associated with the disabled and overseas voters.
SparrowHawk
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- Nov 30, 2009
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Having dealt directly with the USPS they are a very well run organization. World Class in fact. There are two distinct issues that will ultimately destroy a fine service.
1. Is USPS is a political football. In MN where I have lived there are three post offices within a 3 mile radius. At least one and realistically two should/could be closed saving a bunch of money. Problem is nobody in Navarre or Spring Park wants a Mound, MN address and everytime you try to close them the towns erupt is righteous over losing their "identity". This is repeated across the USA and adds cost upon cost to the USPS.
2. Under funded pension liabilities. USPS is saddled with a massive under funded pension liability. This is true for much aof government and many private companies as well. The days of a defined benefit pension plan are numbered as even governments can no longer afford them.
If USPS is to survive as a vibrant, innovative organization the above two issues must be addressed. One idea I've seen is that the Feds "eat" the pension obligation and essentially sell off the USPS to a private company.. It's an OK idea except it doesn't address the overlap of locations. Unless when you sell it off you allow the private company to close and consolidate as they choose as they wouldn't be as exposed to the politics as much as the USPS is now.
The USPS can and should be saved. Privatization often looks good on paper but fizzles in the execution.
1. Is USPS is a political football. In MN where I have lived there are three post offices within a 3 mile radius. At least one and realistically two should/could be closed saving a bunch of money. Problem is nobody in Navarre or Spring Park wants a Mound, MN address and everytime you try to close them the towns erupt is righteous over losing their "identity". This is repeated across the USA and adds cost upon cost to the USPS.
2. Under funded pension liabilities. USPS is saddled with a massive under funded pension liability. This is true for much aof government and many private companies as well. The days of a defined benefit pension plan are numbered as even governments can no longer afford them.
If USPS is to survive as a vibrant, innovative organization the above two issues must be addressed. One idea I've seen is that the Feds "eat" the pension obligation and essentially sell off the USPS to a private company.. It's an OK idea except it doesn't address the overlap of locations. Unless when you sell it off you allow the private company to close and consolidate as they choose as they wouldn't be as exposed to the politics as much as the USPS is now.
The USPS can and should be saved. Privatization often looks good on paper but fizzles in the execution.
KCFlyer
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From what I have read, it's not underfunded pension liabilities...it's OVER funded pension liabilities
777 fixer
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Well we have privatized part of the prison system and look how well that has worked. Oh wait, it hasn't.
SparrowHawk
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I'm not sure but this article reads a bit differently regarding pension liabilities and we may b saying th same thing. Also as 777fixer points out. Privatation is neither a panacea or a Pandora's Box. It'smerely one tool to be used to save money.
777 fixer
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An industry whose buisness model depends on keeping people locked up. Sounds like a Pandora's Box to me.
delldude
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777 fixer
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Ms Tree
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The thing people forget witht he USPS is that it is not set up to be a profitable business. Fed Ex and UPS get to pickj and choose who to provide service to based on how profitable it is. The USPS is not able to do that. As far as I recall, it is in the charter of how they are set up. The USPS picks up and delivers mail to everyone know matter how remote or how few people there are in a given location. If the USPS had the ability to cut loose 'non-profitable' routes I am sure their bottom line would look much better. Also, try and get FedEx or UPS to deliver any where for $0.46, let me know what they tell you.
delldude
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KCFlyer
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UPD and Fed Ex also arent' delivering to every home in America every day either, which the USPS was mandated to do...by that very paper you need your AK47 to defend...the US Constitution. Don't tell me...the constitution needs to be changed to address that, but not your AR15...right?
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