Skip to comments.The Bailout Of The US Postal Service Begins: Cost To Taxpayers - $110,000 Per Union Vote
Posted on 04/26/2012 8:49:05 AM PDT by mojito
A week ago, when reading between the lines of what had heretofore been considered an inevitable USPS episode of austerity in which hundreds of thousands of labor union workers would lose their jobs but in the process would streamline a thoroughly outdated and inefficient US Postal Office bureaucracy, we asked if a US Postal Service bailout was imminent, focusing on the following: "Enter Ron Bloom, Lazard, and the very same crew that ended up getting a taxpayer funded bailout for GM. From the WSJ: "The Postal Service's proposal to close thousands of post offices and cut back on the number of days that mail is delivered "won't work" and would accelerate the agency's decline, according to the six-page report by Ron Bloom, President Barack Obama's former auto czar, and investment bank Lazard Ltd., LAZ who were hired by the union in October." That's right: after all the huffing and puffing about "sacrifice" and austerity, the labor union took one long look at the only option... and asked what other option is there." The other option, it turns out courtesy of news from AP, is the first of many incremental bail outs of the US Postal Office, better known in pre-election circles as hundreds of thousands of unionized votes up for the taking, and which could be bought for the low low price of $11 billion in taxpayer money, or $110,000 per vote! And so the latest bailout of yet another terminally inefficient and outdated government entity begins.
(Excerpt) Read more at zerohedge.com ...
Incredible! What other industry would increase cost to the public when they have a downturn in demand for services. Private sector would lay off unneeded workers instead of keeping the unneeded workers and increasing taxpayer demands.
Calling it a service is a misnomer. It’s a welfare, healthcare and pension program that also delivers packages.
Here is the REAL reason that the post office is in trouble financially. This is what they need to change:
Postal unions want the American public to know that their employer is profitable. While mail volume has dropped by 22 percent since 2006, the agency made $226 million in the first quarter of this year, funded entirely through stamps, not taxpayer money.
The reason for the deficit, they say, is a 2006 mandate that the postal service pre-fund 75-years of pension in a 10-year window, at a rate of $5.5 billion annually. Two independent actuaries have said that the post office has overpaid $50 billion into this fund.
I remember in 1976 wanting to coordinate my job as a Meter Reader, for lights and water to coincide with the walking route of the postal carrier. The idea would be that when the monthly bill came out of the machines, they would all be sorted according to the route of postal carriers. The Union of the Postal Carriers crapped on the idea, it would take job hours away from them sorting these water bills, light bills and put them in the right bag.
Costs always go up if it’s gov operated.
The dems are moving on this just to get the postal UNION vote.
Dunno. I still think its pretty remarkable that $.45 delivers a letter anywhere in the US pretty quickly. Can any private operation match that service?
They’re delivering mail to the US Department of Buggy Whip Auditors.
Do you want the government to be flush with lots of money to spend, or do you want government to be broke?
just FLUSH GubMint—PERIOD !!!!!!!!!!
>I would suggest that the USPS should either be partially subsidized to pay for the perks demanded by local congressmen, or that it be given free reign to make the cut backs they need to do.
I agree with cutting them free of the stupid requests. It reminds me of Amtrak, which might be able to actually turn a profit if they only focused on the routes which are popular. Instead, there’s also someone congresscritter with their pet lines.
Mind you, in both cases privatization would solve the issue, since it is an issue of pull, which is endemic to all government run organizations.
but these postal workers have glorious benefits and retirement compared to similar workers...lets face it...you don't need to be a rocket engineer to deliver mail...
govt workers have never taken any cutbacks when the economy is bad...
while the rest of us take our lumps and told to be happy we have a job, the govt workers in general just keep on collecting and getting more....
UPS and fedex