Wednesday, August 10, 2011

USPS "Bankruptcy" - The Next Flash Point

For years, Congress has constrained the Postal Service that they theoretically made 'independent' in the early 1980s from making the changes to be financially viable. Forecasters now believe it will run out of money in late September.

Congressional Republicans backed by the Tea Party will drive to close thousands of redundant post offices and seek to abrogate the union contract which results in 600,000 - the largest single employer in the country - postal workers being paid significantly more than private sector workers.

They will use the need of the USPS for unbudgeted - note, not unexpected - funding to try to finally corral this bottomless pit.

Look for significant post office closings, significant reductions in featherbedding and significant service reductions.

All are the right thing to do in an information intensive economy.

If they had any sense at all in the post office or Congress, they would seek to create secure email boxes to which governmental and private communications equivalent to letters could be delivered securely in the same way that Congress maintains the monopoly - enforced at law - on delivery of letters to post boxes marked US Mail at residences and offices.


  1. They've been implementing tons of changes to avert bankruptcy, it's latest is by cutting $3billion in their services, meaning that people will have to wait as their mails will take a little longer to arrive.
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  2. As they continue to increase and decrease the prices of stamps, it is quite unfortunate how the USPS wasn't able to recover from the loss. Last I heard is that they are coming up with a solution to deliver mails and packages without having to spend more.

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  3. As more advancements in technology comes, these post offices are hanging on the cliff. It is sad that they have to lessen services. However, I think post offices would not die, at least some offices would stay somehow. Financial planner perth