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  #1 (permalink)  
Old 11-23-2009
daddio's Avatar
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Member Since: Jun 2008
Location: the south
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United_States     Virginia

Bailout for the USPS ?

like we don't do thie every damn year ?

the only question I have is why they have not bothered to get their act together sooner ?

want to cut delivery days ? fine, have at it so long as it means you cut payroll.

the business model is long since dead, lets figure out what the new one is and get on with it.


Quote:
It's been an ugly few years for the United States Postal Service.

The quasi-government agency announced this week that it lost $3.8 billion in the most recent fiscal year, which ended September 30th. It also delivered less mail - 26 billion fewer pieces less, a nearly 13 percent drop from the previous year. The bad news follows losses totaling $7.8 billion in 2007 and 2008.

The Postal Service, as it is quick to point out, is legally prohibited from taking tax dollars. But in order to stay afloat, the agency has been actively borrowing from the U.S. Treasury: At last count, according to Postal Service spokeswoman Yvonne Yoerger, it owes the government $10.2 billion.

Federal law dictates that the Postal Service can borrow up to $3 billion per year - but the debt cannot grow beyond $15 billion. That means that while the agency, which had revenues of $68.1 billion last year, could potentially borrow another $3 billion in 2010, it will soon no longer be able to legally borrow billions from the government.

Meanwhile, the Postal Service is estimating that without significant changes, it will lose another $7.8 billion in the coming year - and deliver another 11 billion fewer pieces of mail.

Which raises the question: Could the Postal Service be doomed?
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  #2 (permalink)  
Old 11-23-2009
funthea's Avatar
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Member Since: Jul 2009
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re: Bailout for the USPS ?

It could in fact be doomed, if only we would let it. Think of all the cart-a-sort that would no longer show up in our mail boxes. How many trees would that save? And how about all those damn jeeps idling at every mail box. To get rid of them surely would be good for the environment.

Sadly, I don't think Obamer could resist another bailout though.
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  #3 (permalink)  
Old 11-23-2009
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re: Bailout for the USPS ?

It's kind of nice to be able to send a letter or a card for cheap.......but there's not much money in it or Fed Ex or UPS would do it.

I think we're always going to subsidize it to some degree. If they don't use tax dollars, but borrow it from the treasury, what's the difference?

I personally like the service for what it is except for all the junk mail. Charge more for junk mail or get rid of that overhead and don't sort/carry/deliver it.
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  #4 (permalink)  
Old 11-23-2009
Imperator's Avatar
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Re: Bailout for the USPS ?

Quote:
Originally Posted by TheLastBoyScout View Post
It's kind of nice to be able to send a letter or a card for cheap.......but there's not much money in it or Fed Ex or UPS would do it.

I think we're always going to subsidize it to some degree. If they don't use tax dollars, but borrow it from the treasury, what's the difference?

I personally like the service for what it is except for all the junk mail. Charge more for junk mail or get rid of that overhead and don't sort, carry, deliver it.
uhm what? why should I subsidize someone elses mail service?

Raise the cost.

If the market turns away, then pull then plug on it.....
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  #5 (permalink)  
Old 11-23-2009
iamwhatiseem's Avatar
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Re: Bailout for the USPS ?

Quote:
Originally Posted by funthea View Post
It could in fact be doomed, if only we would let it. Think of all the cart-a-sort that would no longer show up in our mail boxes. How many trees would that save? And how about all those damn jeeps idling at every mail box. To get rid of them surely would be good for the environment.

Sadly, I don't think Obamer could resist another bailout though.
It wouldn't save any trees at all.
A typical response from an unknowing public.
All major American/Canadian/European paper industries plant more trees than they harvest. Get rid of the mills, and there would actually be less trees.

Direct mail is a vital medium for many, many businesses. Without it, and new products, new businesses have a small chance of reaching the public.
Direct-targeted mail is by far the most successful advertising medium out there.
Bailing out the USPS would hurt less than the significant hurt it would impose on all other businesses.
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  #6 (permalink)  
Old 11-23-2009
JoMe's Avatar
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Location: San Jose, CA.
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United_States     California

Re: Bailout for the USPS ?

Once again another fine example of whatever the govt. touches turns to shit!
  • USPS is a quasi-government organization - broke and more or less dysfunctional!
  • Fannie Mae and Freddie Mac are also quasi-government organizations and helped get us into this financial mess and are also in trouble.

These are just two examples but there are plenty of other examples of government incompetence.

And some of you want the government to run our health care. God help us.
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  #7 (permalink)  
Old 11-23-2009
CSA's Avatar
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Re: Bailout for the USPS ?

They have a government mandated monopoly

btw.. Unions killed them a long time ago.. the money theya re losing is the money for retirement benifits.
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  #8 (permalink)  
Old 11-23-2009
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Re: Bailout for the USPS ?

Quote:
Originally Posted by Imperator View Post
uhm what? why should I subsidize someone elses mail service?
Did you opt out of mail delivery or something?

Quote:
Originally Posted by Imperator View Post
Raise the cost.

If the market turns away, then pull then plug on it.....
FedEx and UPS charge about $2.00 to mail a letter.

I would suppose that the USPS could raise the price to 60 cents or so...or maybe higher. But if the market didn't like it and we didn't let them borrow money, I guess we'd be sending $2 letters, $2 postcards, $2 to pay the bills we can't ebill..etc.

Oh well, fuck 'em. I can afford it and it would be worth it to see another government program go down.
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  #9 (permalink)  
Old 11-23-2009
JoMe's Avatar
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Re: Bailout for the USPS ?

Quote:
Originally Posted by CSA View Post
They have a government mandated monopoly

btw.. Unions killed them a long time ago.. the money theya re losing is the money for retirement benifits.
This is true. Just like the unions are killing the American auto industry.
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  #10 (permalink)  
Old 11-23-2009
Active Citizen

 
Member Since: Nov 2009
Location: New Jersey
Posts: 75

   
Re: Bailout for the USPS ?

Quote:
Originally Posted by iamwhatiseem View Post
It wouldn't save any trees at all.
A typical response from an unknowing public.
All major American/Canadian/European paper industries plant more trees than they harvest. Get rid of the mills, and there would actually be less trees.

Direct mail is a vital medium for many, many businesses. Without it, and new products, new businesses have a small chance of reaching the public.
Direct-targeted mail is by far the most successful advertising medium out there.
Bailing out the USPS would hurt less than the significant hurt it would impose on all other businesses.
I'm sorry but are you arguing paper mills are good for the environment? Trees are not the only thing they destroy but the habit of millions of animals are lost and it doesn't matter if new trees are planted. It will take years for the forest to become inhabtable again.
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  #11 (permalink)  
Old 11-23-2009
Steve's Avatar
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Location: San Diego
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Re: Bailout for the USPS ?

I dunno’.

How much is it to mail a letter right now? Forty-four cents? That’s pretty cheap. Compare that to what that FedEx or UPS would charge for that same letter. There’s quite a difference in price.

I think the USPS should raise their rates to where they’re competitive with other carriers. They could still be cheaper, make more (or lose less), and could, perhaps, avoid relying on a bailout.

The problem is that there’s always such a public outcry when the post office raises its’ rates.

I can remember when it cost eight cents for a first class stamp. It went up to a dime and people lost their minds. For whatever reason, people will always decry postal rate increases. Yet, when compared to the price of a gallon of gas, or a loaf of bread, or a gallon of milk, the price of a stamp hasn’t gone up that much at all.

People will still need to mail things. Not everything can be done through e-mail or on the internet. For this reason, I think we need to figure out a way to make the Postal Service viable.

A one pound package shipped overnight with USPS, from San Diego to Long Island, would be $25.15. That same package, shipped via UPS, would be $45.10, which is the same as FedEx. Nothing special is being done with the package by either UPS or FedEx, but they’re charging almost twice as much to get the same one pound package to the same residential address in Hauppauge, New York, in one day.

How about a simple letter?

Well, at the Post Office, we already know that costs forty four cents. The problem with the comparison is that UPS and FedEx don’t offer anything comparable to first class postage. Their letters are all “expedited” at FedEx. An overnight letter will set you back $64.77. Yikes. The Post Office? $21.20; less than one third the price of FedEx. UPS can get it there, next day, for $31.91, or roughly 50% more than the Post Office.

If you wanted to just “send a letter” with UPS, with no time constraints, you’ll spend a minimum of $9.61. I’ve gotten letters through the Post Office in that amount of time, from New York, for forty four cents.

Both FedEx and UPS seem to be going strong, so why not adopt their business model, raise the rates at the Post Office (say, from $25.00 for that package to $35.00), and see what happens. Instead of a first class stamp for .44, let’s make it $7.00. It’ll still be cheaper than UPS or FedEx, but the increase in revenue could negate any need for a bailout…
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  #12 (permalink)  
Old 11-23-2009
Secretary of Defense

 
Member Since: May 2009
Location: New England
Posts: 2,246

   
Re: Bailout for the USPS ?

Mailing a letter should cost 52 cents considering the price was raised in 1975 from 10 cents to 13 on account of inflationary pressures and adjusting that 13 cents to find the price today would make it 52 cents.
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  #13 (permalink)  
Old 11-23-2009
Sunshine's Avatar
Secretary of State
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United_States     Kentucky

Re: Bailout for the USPS ?

[QUOTE=daddio;1577393][URL="http://www.cbsnews.com/stories/2009/11/19/politics/main5711797.shtml"]like we don't do thie every damn year ?[QUOTE]

You said a mouthful... sugar!

Bailout shouldn't even be used here. The USPS is just like the VA and every other government organiaton that provides a tangible service. TheY don't have to make a profit. So the term 'bailout' is inappropriate. And funny!
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  #14 (permalink)  
Old 11-23-2009
Imperator's Avatar
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Re: Bailout for the USPS ?

Quote:
Originally Posted by TheLastBoyScout View Post
Did you opt out of mail delivery or something?
Not at all, as I said raise the price then. If the market bears it fine, if not well?

Frankly post office folks have the gov. to feed them whenever they fail, that’s got to stop or they will never get healthy, I don't call healthy losing billions a year.

We already are in affect subsidizing them....if everyone is to big to fail where does it end?

Quote:

FedEx and UPS charge about $2.00 to mail a letter.

I would suppose that the USPS could raise the price to 60 cents or so...or maybe higher. But if the market didn't like it and we didn't let them borrow money, I guess we'd be sending $2 letters, $2 postcards, $2 to pay the bills we can't ebill..etc.

Oh well, fuck 'em. I can afford it and it would be worth it to see another government program go down.
I don't want to fuc anyone, but as it stands we are getting fucked right now anyway.
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  #15 (permalink)  
Old 11-23-2009
Steve's Avatar
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Re: Bailout for the USPS ?

Quote:
Originally Posted by TheLastBoyScout View Post
FedEx and UPS charge about $2.00 to mail a letter.
I went through both of their websites pretty thoroughly, and I didn't see such a rate on either.

Could you point me to one?
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