A misfit of sorts

Permalink The Reality of the Future If nothing is done, the USPS will run out of money by August or September of 2012 and absent Congressional action the USPS will default on mandate of $5.5 billion payment The plan is to cut 50% of current infrastructure by 2020 Walmart/convenience stores = new post office Postmaster General promises if excused from annual healthcare prepayment and allowed to make changes in system it will wring out profit  6 to 5 days, will save $3 billion Get rid of 20% of headcount through “attrition”, government prohibits layoffs Federal stricture forbids the closing of post offices solely for economic reasons May be easier to fix this system then say Medicare or Social Security Junk mail up 7.1% last quarter of 2010 Richard R. Geddes, an associate professor of policy analysis and management at Cornell University said, “I really believe that the USPS is going to get to a point where, regardless of what it does with the prefunding (of retiree health care), it is going to implode. It is either going to default on those obligations to its retirees or we are going to have to give it a direct bailout from the United States taxpayers.” “The implosion could happen this year because of the stalemate in D.C. Maybe that’s what it will take for Americans to get a modern mail service. Even Donahoe, who advocates something less, sounds as if he would welcome it because there’s no other way out. “Some people say if you crash the system,” he says, “then people will pay attention to you.”” A different proposal than Obama’s to help the system: http://www.youtube.com/watch?v=kg4fe9rkpnI
Permalink The Sentiments “Foundation piece of democracy being treated like a business.” Donahoe when asked what Ben Franklin would say about current situation, “Don’t be penny-wise and pound foolish.” Save the postal system! and offices Many individuals on the road doing research to try and help, hand out information Websites set up Rallies, people refuse to use internet, etc. Wouldn’t YOU miss that handwritten letter from gran?  A college student with a strong connection to our postal system: http://colossus-of-roads.blogspot.com/
Permalink In Congress and the Blue/Red Debate Democrats receive support by postal workers’ unions Proposed a bill to give PS access to $75 billion it claims to have overpaid the Federal retirement system in order to get out of red People argue will do nothing to help rising deficit, and won’t fix real problems Republicans oppose anything of a bailout Want to make deep budget cuts such as 2 offices closed per every congressional district As of 9/6/11 the White House planned to prevent a financial rescue plan for the USPS with the $1.5 trillion deficit reduction package Obama asked Congress to give USPS a 90-day extensive to pay mandate annual retirement payment Capitol Hill debate primarily about money In 2006, $27 billion relieved of pension liabilities of military background postal workers See President Obama’s plan to help the USPS: http://www.whitehouse.gov/blog/2011/09/19/president-s-plan-economic-growth-and-deficit-reduction-0
Permalink The Comparison In the late ‘80’s the European Union created a single party market and decided it would rest in the hands of 3rd parties Did well by closures, new business line through technology  At first public was skeptical, but warmed up The Union had to stick to plan and take part fully US doesn’t have the time as it was a slow migration to make profit “The privatization of service is supposed to be universal but doesn’t sync with market’s guiding hand.” See how other contries are doing OK: http://www.msnbc.msn.com/id/43259512/ns/business-us_business/t/postal-service-running-out-options/
Permalink The Problems and Questions Electronic communications Email is free, convenient, and no stamp taste! Yahoo! $5 cost to receive notice from US Senate Credit Union Decline in junk mail Fed. Regulators disallowing certain cuts such as cutting Saturday services and raising stamp prices Recession Pressures to close thousands of rural locations to restructure system Does distance matter, to ship back if undelivered? Slow to react to industry shifts Private companies without daily service, unions Operate largest system in world when 80% lose $? Possible to create system for internet users to correspond? Population growth with continued raising of employers salaries and benefits Post offices being considered for closure: http://www.savethepostoffice.com/amp-map
Permalink The Service 90% of mail is advertisements/broadcasting Use of USPS website to stop delivery, track shipping, and print labels through a secure system Wanted to do banking, insurance, sell cell phones, but NO! because of mass locations and unfair advantage for government entity An independent agency so still has to answer to Congress Relies on first class mail for funds, and in 2005 fell below junk mail Takes 3 pieces of junk mail to equal the cost of a stamp letter  Unions set up to protect themselves from cuts and many contracts renewed providing unease for the public, in a time of deficit, we’re giving raises? Ideas for greater profit: such as to expand, terrorist sensors USPS online services: http://about.usps.com/news/electronic-press-kits/expandedaccess/welcome.htm
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Permalink The History Created during 2nd continental Congress Was a means of communication and now is mainly a broadcasting system against great competition Many postal buildings are historic, marking establishment of a community or revival after a disaster With the Postal Reorganization Act back during the Nixon presidency the name was changed and service did too, for the good although the saying “going postal” came from this time period By middle of 20th century problems arose with cracks in the foundation and close to collapse ‘90’s talk of reforms and there was an implosion to get the modern mail system although nothing happened Starting in 2006, Congress passed a law requiring annual prepayment to start prefunding retiree accounts with an annual payment of 5.5 million/10 years when year went well, thought to be planning for the future, but soon economy collapse The Mandate of universal mail access almost ensured it would go in red Had no plan for future, in case of emergency, etc. See the definition of going postal: http://www.urbandictionary.com/define.php?term=going%20postal
Permalink The Numbers Total mail volume has decreased by 20-26% from just 4 years ago Since 2007 unable to cover annual budget 64% of Americans opposed closing branches in a March 2010 poll As of January 2011, the USPS had: 532,800 employees 32,000 locations with half of them operating at a deficit In 2011: 2-3,000 branches and stations were to close to save a supposed $500         million The 200,000-220,000 layoffs will save only 2% admits Postmaster               General Borrowed $12 billion from treasury, statutory debt limit reach this year, insolvency  Statistics from USPS’s website: http://about.usps.com/who-we-are/postal-history/rates-historical-statistics.htm 
Permalink The Facts of the United States Postal System USPS is the country’s 2nd largest civilian employer after Walmart Operates 31,871 offices, more than combined domestic retail outlets of Walmart, Starbucks, and McDonald’s If the USPS was a private company, it would be No. 29 on Fortune 500 Largest public-sector employer in the US, and is included in the Constitution Handles 40% of the world’s total mail volume Postal Services in the rest of the world are thriving To see where USPS would fit in with other major companies: http://money.cnn.com/magazines/fortune/fortune500/2011/full_list/