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De Omnibus Dubitandum - Lux Veritas

Monday, March 17, 2014

Postal Service Faces $100B in Debts and Unfunded Benefits

By Michael W. Chapman March 14, 2014

The U.S. Postal Service (USPS) currently owes $99.8 billion in benefit payments to its current and retired workers but does not have the money, and if Congress does not act to fix the problem, the Postal Service may have to “implement contingency plans to ensure that mail delivery continues,” according to a new report by the Government Accountability Office (GAO).  “At the end of fiscal year 2013,” said the GAO, “USPS had about $100 billion in unfunded liabilities: $85 billion in unfunded liabilities for benefits, including retiree-health, pension, and workers’ compensation liabilities, and $15 billion in outstanding debt to the U.S. Treasury—the statutory limit - See more at:

My Take – I don’t really know if this is true or not, but when I was in high school a teacher - who was a world traveler during his summers off –claimed at one time the French postal system (decades ago) was so efficient and effective that people used to order their groceries via the system and get them the same day.
 
While not delivering groceries any longer – if they ever did – it's still seen as an effective instrument of service to the French people, but it is also highly subsidized, as is about everything else in France, but at least it seems to work. This business about the U.S. Postal Service offering banking services made me laugh and shake my head, until I realized the French do it.
 
The thought I take away from this is one of concern. The Royal Mail is a financial disaster and had to be privatized. But who really knows what privatization means in a socialist society? It may mean as little as it does in the U.S. - we will still foot the bill in the end. The French service is effective but highly subsidized, as is the U.S. service, no matter how they frame it.
 
So do we get this - highly subsidized and financial disasters.  Even if they are effective in delivering the mail they're all financial failures. They're either running massive deficits or highly subsidized or both. The French seem to like the financial services offered by the post office, but what happens if all those subsidies end?
 
The U.S. post office now claims they should be doing banking, which is highly competitive, highly complicated, and the essence of capitalism, yet they can't deliver the mail with financial competence.  And I'm not even going to blame management for this because the way things are sturctured I doubt there's anyone in the world capable of fixing it.  One thing is for sure - if all these postal services ever wish to become financially solvent they have to rid themselves of these public employee unions. But they don't and won't- the govenment doesn't and won't - society doesn't care.  So let's stop whining and keep paying the bills until it all collapses.  After that we won't need to worry about mail delivery, because we won't have the money to pay the bills they deliver anyway. 
 
See - Problem solved!  Nuf Ced?

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