Hey Dude, where's my post office?

[Idunn]

"People say you can adjust, you can do this, you can do that. But we depend on this post office. It really is the hub of this community," she said. "It's crazy that it has come to this. Someone needs their butt kicking." [1]



According to this article, although the USPS seems set on closing 3,200 post offices come May, the fuller number soon may be more like 15,000, or half the existing network.

Figures I recently ran across indicated that even though mail volumes have dropped to 1980 levels, still far higher than through most of Post Office Department history since 1775, when Benjamin Franklin was the first postmaster general. With far less volume, and revenue, historically, our postal system has managed to exist until now.

Although not helped at all by the privatization of the Postal Reorganization Act of 1970, which replaced the Post Office Department with the U.S. Postal Service. Existing since then as a theoretically independent entity, it still answers to Congress, and receives subsidies as well.

Current fiscal problems of the USPS would not exist save for the requirement to pre-fund its pension plan. Although, one might consider, this only a prudent and sound practice which all businesses should adhere to. Since most do not, witness all the many pensioners in this country that have been, and are being, left high and dry by corporations finding they cannot pay the obligations they are legally contracted to, because they never bothered to fund them to any degree during many years of profitable operation.

The truth of this is that the people determining the fate of the USPS probably consider their access to it secure, as living in an urban environment. But if happening to send a letter or package to someone in, say, Ward, CO, then effectively asking them to make a long journey (in near future) to retrieve it.

1) 'Closure of US post offices threatens smalltown America,' The Guardian
Closure of US post offices threatens smalltown America | World news | The Guardian

[Idunn]

'Williams, whose organisation audits the USPS, described the set of financial constraints on the service as "murder – it wasn't premeditated, but it was murder." [1]


It appears that the 149 year-old U.S. Post Office service in Ward, CO is spared for now. Postal service in this and many other small communities in Colorado and other states was scheduled to end permanently in May. [2]

But they may not be out of the woods entirely, as not only Ward but the entire United States may soon lose all postal service. For the U.S. Postal Service will be out of business this year unless Congress decides to rescue it. The Post Office is presently many billions in debt, to the tune of $394bn to satisfy legal requirements towards its pension plan.

Being rather the rub, as the Post Office alone among other government agencies has the distinction and requirement to pre-fund its pension plans. This is a noble idea, putting the Post Office in the unique position as the only responsible agency vis a vis pensions. Only they cannot afford it, and as required to fund this in advance (as proper)—rather than like everyone else kicking this can of liability down the road (and then decades later pleading insolvency)—therefore in such immediate peril. Helped not at all by having to take on debt to try and fund this, so also interest payments. AND in the unenviable pickle of having to borrow this money from the same U.S. Treasury that it sends these pension payments to; so in effect placing their pre-funded pension money with precisely the type of guys who will blow it on needless wars and so forth—and at the end with nothing to show for it (sorry, we no longer have your money, a la MF Global).

So maybe soon we'll all be in the position of Ward and maybe no Post Office in town, but in even more trouble as there will not be one open anywhere. Wasn't a well functioning postal system always considered one of the hallmarks of a civilized society?

1) 'US Postal Service faces ruin without rescue from Congress, watchdog warns,' The Guardian
US Postal Service faces ruin without rescue from Congress, watchdog warns | Business | guardian.co.uk

2) 'Ward's post office may be spared after Postal Service drops plan to shutter outlets,' Boulder Daily Camera
Ward's post office may be spared after Postal Service drops plan to shutter outlets - Boulder Daily Camera

[reed303]

Surely the USPS has got to be one of those outfits that are "too big to fail", and will be bailed out like AIG, GM, Bank of America, etc etc ?? Or do the hard right conservatives hope it goes into bankruptcy so their friends in private industry can pick up the business for pennies on the dollar ??

[Mike from back east]

IIRC one of the reasons for the big pile of red ink is that Congress has required the USPS to prepay $5B/year for the FUTURE health care costs of its retirees for SEVENTY FIVE YEARS into the future! No corporation in the world could pay the health care costs of its retirees for 75 years in advance; hell, some of those "employees" aren't even born yet! Just another problem created by a congress that is simply goofy as hell.