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Postal Problems: the Role of Government Micromanagement

Phd3 Wrote: Apr 06, 2012 11:17 AM
End the insane pension prefunding requirements. Save the Post Office. The Postal Service is the second largest private employer, second only to Walmart. It provides good jobs, wages and benifits, all while making a healthy profit. End the insane pension prefunding and the PO is a billion dollars a year in the black.
Joseph64 Wrote: Apr 06, 2012 1:08 PM
And when the USPS pension fund goes into crisis mode because it is underfunded, what happens? Should we be forced to pay $3 for first class stamps to make up the difference?
Walter1776 Wrote: Apr 06, 2012 7:01 PM
He didn't say end pension prefunding requirements, only the insane requirements. The Postal Service is required to prefund retirement 75 years in the future. It's required to prepay for people who haven't even been born yet. Remove that insane requirement and the Postal Service is in the black without closing processing centers, without a workforce reduction and keeping 6 day delivery.

Postal expert Michael Schuyler has released a follow-up to his January paper that compared the recent financial performance of the U.S. Postal Service to foreign postal service providers. Not surprisingly, the USPS has fared relatively poorly in comparison to its foreign counterparts. In his new paper, Schuyler looks at the role government micromanagement plays and finds that “Foreign posts have much more flexibility than USPS to adjust operations to keep costs in line with revenue.”

The following are some key points:

  • Foreign governments intervene in their postal markets, but “foreign governments often temper their demands and...