By
C. Neuroticus Absolutus
Note here that the USPS is mandated to pay $5.5B for health
benefits for employees who haven’t even been hired or born yet. While a few
corporations are doing the same, none are paying ahead for future retirees’ employee
health benefits for such an extended time. As you might guess, the USPS
defaulted on the payment on the first due date and has run a deficit since that
time.
This past week, the postal service lowered the cost of a
single stamp by $.02. This was touted as a savings to the consumers of $2
billion annually. But with the current annual deficit, this is an additional
loss of $2 billion annually in revenue to the USPS.
Does that perk up your ears?
In a Republican controlled congress (for
over 7-years now) that wants to privatize the USPS services, increasing the
USPS deficit makes the postal service look like a financial drag on the
government (they conveniently ignore the fact that the mandate of the $5.5B
payout to the health fund is the cause of the rising deficit). What better proof
to support those calling for privatization of the USPS? Get that burden off the
government’s back!
Other tactics used by the congressional
privatization group have been calls for 1) service degradation (change from
6-day delivery schedules to 5 days, doing away with Saturday deliveries. 2) raising
postage costs to consumers to get their agreement that USPS services are getting
too expensive and the USPS is doing a bad job. Sending Christmas cards last
year for me cost $50 in postage and I’m certainly not happy about that. 3) The
closing of some regional offices (Roanoke, VA, for example) and moving the sorting
facilities farther away from the customers they serve. For USPS customers in
the 24018 zip code area, the sorting is now being done is Greensboro, NC,
causing a full day delay in delivery, even for addressees and addressers in the
same zip code, a certain degradation of service.
Consider that the cost of a postage
stamp before the congress mandated the $5.5B pay-forward health benefits for
employee retirement (2005) was $.37. Today it’s $.50, an increase of 35% in 10
years, which I dare say is higher than the inflation rate of the same period.
My question is: Why has Congress
mandated the fiscal failure of the USPS, especially when the USPS is already losing
revenues to the Internet and competitors like UPS and FedEx? And why hasn’t the
Congress relieved the USPS of this obvious burden by reducing the annual
payments?
Further, what guarantees do we have that
Congress will not “borrow” some (or all) of the billions accruing in the postal
employees’ future health benefit fund, just like they ripped off the Social
Security funds. Since they haven’t paid these loans back, they now say that
Social Security is going bankrupt and want to put it on a better footing by privatizing
it.
It’s obvious that any large pot of money just
sitting there awaiting future use is too much of a temptation for the
Republicans (Social Security and the USPS future employee retirement accounts
and who knows what else?) They would rather privatize it all and let their
banking cronies control our funds and charge us large fees for the privilege.