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what would happen if the post office was privatized

I say put the post office back into the presidents' cabinet … CEO who jumped the COVID vaccine line is out of a job, A stock market correction may be around the corner. Today, 34 million American families live in places without traditional banking services. The Netherlands, which privatized its postal service in … The unfortunate truth is that not only is the USPS fighting against the inane mandates of Congress, but also the ineptitude of unqualified top-level managers who are in way over their heads. At its peak, 4 million Americans took advantage of these services, saving $36 billion in 2014 dollars. And that's why some people hate it - BECAUSE it works. I really hope president Trump take a look at this and realize it's hurting business it's hurting their growth and people realize that the post office … Before 1971, it was a department of government, supported by taxes. Distributed by OtherWords. Using the deficit created by this requirement as an excuse, the USPS board of governors is closing distribution centers, cutting worker hours, eliminating delivery routes, and slashing jobs. Image by flickr user seandreilinger, used under a Creative Commons license. Postal Service, an agency with 600,000 federal employees and whose creation was codified by the Constitution. But the purported “fiscal crisis” is a manufactured one. Those institutions are expected to make a profit. Louis DeJoy, a Trump donor the president appointed as postmaster general in May after rejecting bailout funds for the USPS, has slashed its funding and staffing. "People in the UK have seen the impacts of privatization and want it back into the hands of the public: 69 percent of people in the U.K. want the Royal Mail in public ownership," Sanders said. This virtuous circle benefitted the entire community. But in 1971, Congress made the service into an “independent agency” managed by a board of governors. If it became privatized I think the cost of mailing a letter would soar. Lovers of Our Founding Fathers and The Constitution have no reason not to love the post office too. The Post Office is the world’s largest single owner of urban real estate. I worked long and hard hours but the morale going on then was just like one big happy family. Our Founding Fathers did and enshrined it in Our Beloved Constitution: Why would ANYBODY want the Post Office to disappear? Terms & Conditions. 3. Over the past five years, USPS has cut 94,000 positions. They're better, cheaper, and just as reliable. The European Union is … This added $5.7 billion to its costs last year. The Post office still follows a 19th century model in a 21st century world. Privatization is a ploy to kill the constitutionally-mandated operation of reasonable-cost mail services, and replace it with expensive private services that would not be able to compete on a per-mailing basis with the government. Britain’s postal service, the Royal Mail, has just joined the private sector as part of an effort by the U.K. government to raise cash to help pay down its debts. And thus demonstrates that their ideology - "Everything is better if it's profit-motivated" - is false. A private owner could not buy this at market price so he would have an interest in going out of business selling his real estate for an enormous killing. Section. All rights reserved. It would be a better return on investment than the subsidies that are given to the oil companies. Dr. Steve Hutkins, an associate professor of literature at New York University who administers the website Save the Post Office, disagreed. This should be required reading for the American public! Jokers to the left and Clowns to the right, and here we are stuck in the middle!!! Instead of selling off the assets we built together over two centuries, let’s invest in our Postal Service — a public system that has served our nation since its birth. In the wake of the Cold War and the fall of the Berlin Wall, Germany was ready for change. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. The fact that postal employees are unionized and engage in collective bargaining is a smokescreen; it’s irrelevant. Other than that the article is fairly well done. This an archive site of the materials produced by the Center for Effective Government (formerly OMB Watch) and is maintained by the Project On Government Oversight. Trump is threatening the USPS with privatization, but that's a terrible idea. Experts estimate that low-cost banking services could save American workers a trillion dollars a year. The Postal Service can reach all 150 million American households because it’s a public system that we’ve been investing in for over 200 years. They don't realize what they would lose if they privatized the service. “At a time when America needs the Postal Service more than ever, the reason we are so needed is having a devastating effect on our business,” Brennan said in a statement.. “The Postal Service relies on the sale of postal products and services to fund our operations, and these sales are plummeting as a result of the pandemic. Congress confers on the USPS monopolies over the delivery of first-class mail and access to mailboxes, the latter of which is a unique protection among the world's postal systems. Germany's Deutsche Post, which runs the DHL brand, has been private since 2000 and is now the world's largest logistics group. In many small towns, the local post office continues to be a community hub, a place to meet neighbors and get news. Donald Trump today introduced a wide ranging proposal to reorganize the federal government, including privatizing the US Postal Service. Place that network in private hands and the opportunities for fee extraction increase dangerously. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Personal Information | Ad Choices  Citizens worldwide have found that their mail service didn’t improve but the prices rose substantially. FORTUNE may receive compensation for some links to products and services on this website. The Dutch, Belgians, and Austrians have privatized their own postal services, with respective governments retaining some of the stock. The Congress shall have Power to... establish Post Offices and post Roads. Offers may be subject to change without notice. Last year, the Postal Service delivered 1.4 billion packages for FedEx and UPS. Privatization, as it has emerged in public discussion, is not one clear and absolute economic proposition. Once the downsizing is complete the Post Office will be using what staff they have left more efficiently than they now do. Instead of shrinking the Postal Service, we should build on it. Postal Service has lately been a political lightning rod. So why shouldn't the tax payer subsidize the postal service just like they do the police and fire departments. Without these retiree health payments, USPS would actually turn a profit. 10 The privatized Royal Mail delivers letters and packages. And since then, it’s been under attack by politicians who never met a public program they liked. Yes, the rise of UPS, FedEx, and the Internet has created new challenges for your local post office. ... which predicted that privatization could happen as early as this year. And if it’s a long ways away from town out in rural America, it’s not profitable for them to go. ... which predicted that privatization could happen as early as this year. A few days ago, the Trump administration announced that one of its goals is to privatize the Postal Service. Luckily for the critics, the post office serves almost no purpose in our digital age, making these concerns virtually unfounded. It was one of the original functions of Government, mentioned in the Constitution. In fact, it delivers the last mile for almost a third of FedEx packages. I really hope president Trump take a look at this and realize it's hurting business it's hurting their growth and people realize that the post office … Privatising the Post Office is a VERY complicated business. Another cost privatized postal services commonly slash in an effort to boost profit margins are jobs and wages. Despite having lost the popular vote by a wide margin, Trump apparently feels he has a mandate to fundamentally reshape major American institutions- and the post office is one of his targets. Each time the mail services have been privatized it has failed to deliver the same reliability, productivity and the standards that was given and expected from the government. Much like the USPS, prior to … Katherine McFate is the President and CEO of the Center for Effective Government. Once the downsizing is complete the Post Office will be using what staff they have left more efficiently than they now do. Reprinted under a Creative Commons license. I'm not sure how low cost banking saves a trillion dollars a year when the estimate was that pay day lenders cost Americans $89 billion a year. Not to mention, considering the USPS’s reputation for inefficiency and waste, it would take a great deal of effort for the private sector to do a worse job than the government has done. Do they WANT to pay more for the same thing? Allowing the Postal Service to offer new products, such as gift-wrapping and notarization, would also increase revenue. This op-ed was originally published by OtherWords. Those institutions are expected to make a profit. FACT : ALL companies are … If they did, many corporations would run huge deficits or tumble into bankruptcy. America's founders recognized that commerce requires a common infrastructure. I echo Postal Pete: "Someone who actually gets it!" Quotes delayed at least 15 minutes. © 2020 Fortune Media IP Limited. After all, private industry would want to make a profit. After all, private industry would want to make a profit. The answer is privatization, and the opening up of the postal market that would come with it. No other private company or federal agency has to pre-fund retirement health care benefits. 2. It is exempt from state and local sales, income, and property taxes, and from parking tickets, vehicle fees, and other charges. Donald Trump today introduced a wide ranging proposal to reorganize the federal government, including privatizing the US Postal Service. For example, when Germany privatized the Deutsche Post in 1995, it helped saved the country’s mail system. I'm not sure how low cost banking saves a trillion dollars a year when the estimate was that pay day lenders cost Americans $89 billion a year. The private companies would have to deliver them if the post office wasn’t there. The Postal Service’s fleet of vehicles — the largest in the country — could be equipped to detect air pollutants and report potholes, water leaks, and other infrastructure repair needs. Privatization would force the USPS to raise prices in line with the cost of its services, especially for e-commerce businesses that rely on it for the delivery of parcels. Europe has already demonstrated how, practically speaking, privatization could be a success. They could do even more. I ALWAYS use USPS. Market data provided by Interactive Data. A USPS mail carrier wearing a mask delivers mail in Flushing, New York, on April 11. The privatized Dutch post office, PostNL, fired older letter carriers and replaced them with workers paid per item or part time, many earning less than minimum wage. So why should the tax payer subsidize the postal service just like they do the police and fire departments. 8 of The Constitution: The post office actually makes money every year but there's no company in the world that has the prepaid a pension and liabilities the way the post office do. If they did, many corporations would run huge deficits or tumble into bankruptcy. Did you know that when you ship a package through Federal Express, the U.S. The US postal service (despite quibbles by some) is a “quasi-governmental" organization. If it became privatized I think the cost of mailing a letter would soar. The U.S. The president says Amazon is charged too little by the post office for delivery of its goods (a claim that is impossible to assess fully because the contract is private). Too bad they can't get rid of them or hold them accountable for their actions or plans. I get shipments all the time. It pays federal corporate income taxes on its earnings from competitive products, … The government retained the “Post Office,” which operates a retail chain providing postal … Powered and implemented by Interactive Data Managed Solutions. michael barbaro The 618,000 Postal Service workers also delivered nearly 66 billion pieces of first-class mail — that’s more than 100,000 pieces per carrier. Excellent article. Customers received 2-percent interest on their savings accounts, and the post office loaned their money to community banks, which then made loans to local businesses. Congress sucks!!!!! A private postal system, says the White House proposal, would deliver mail fewer days per week, shift to cluster boxes instead of door and curb delivery, adjust prices and negotiate wages and benefits without government interference, and “shrink its physical and personnel footprints,” i.e., close … (ernstseconomyforyou.blogspot.com, March 28) When the switch was made in the 1980's, to become semi-private it gradually developed into a dog eat dog environment. MYTH: The Post Office is required to fund pensions in advance in a manner applies to no other private-sector company. All Rights Reserved. Before 1971, it was a department of government, supported by taxes. That means, first of all, appreciating that the USPS can be much more than a delivery service. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. “At a time when America needs the Postal Service more than ever, the reason we are so needed is having a devastating effect on our business,” Brennan said in a statement.. “The Postal Service relies on the sale of postal products and services to fund our operations, and these sales are plummeting as a result of the pandemic. Our nation’s founders understood that a universal, affordable, and yes, public postal system helps knit us together as a nation. And it didn’t end in a disaster. The post office actually makes money every year but there's no company in the world that has the prepaid a pension and liabilities the way the post office do. Here’s how investors should play it, Beware Goldman’s latest prediction about the stock market, CA Notice at Collection and Privacy Notice, http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. Without these retiree health payments, USPS would actually turn a profit. Those changes will likely include privatizing and selling pieces of the public service off, according to the American Postal Workers Union (APWU), which represents more than 200,000 current … The US postal service is "a lifeline" for many rural and Native communities. A privatized USPS would pay federal, state, and local taxes, which would put the USPS on a level playing field with other businesses. The only reason the Post Office isn't doing so is because fewer and fewer people are using them. The USPS also enjoys a range of other benefits:1 1. If Trump and Congress don’t help the agency with its financial problems, it could run out of money by September. It can borrow up to $15 billion from the U.S. Treasury at low interest rates. The USPS is way too far in debt and something needs to be done for its immediate future to make sure that it remains solvent, and I think that privitazation would definitely help. Other than that the article is fairly well done. Katherine McFate is the President and CEO of the Center for Effective Government in Washington. The US postal service (despite quibbles by some) is a “quasi-governmental" organization. Democratic politicians have since called for an investigation into DeJoy’s changes to the service. No other private company or federal agency has to pre-fund retirement health care benefits. Republicans want privatization, Trump wants to stick it to Amazon. It would be a better return on investment than the subsidies that are given to the oil companies. And yes, most of the crafts shake their heads in bewilderment at the way management has bungled everything they touch! The job loss alone is a travesty, but a bigger principle is at stake. not enough veterans hired and too many losers working there. The USPS could raise tens of billions of dollars each year by reinstating post office savings accounts and banking services, which it efficiently provided for 55 years in the first half of the 20th century. Despite having lost the popular vote by a wide margin, Trump apparently feels he has a mandate to fundamentally reshape major American institutions- and the post office is one of his targets. It was one of the original functions of Government, mentioned in the Constitution. They recognized that commerce requires a common infrastructure and public institutions that belong to and benefit the entire country. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. And postal carriers don’t just deliver letters — they often keep an eye on the elderly and homebound, and alert first responders if things look amiss. The post office does not need to be privatized, it needs to be prioritized…. The only reason the Post Office isn't doing so is because fewer and fewer people are using them. Millions still rely on the post office to pay bills and do other essential transactions. Our Constitution tasked the federal government with creating a national postal system and told the Postmaster General to report to the president. Yes, I think that if the USPS was privatized then it would be better off both financially and fiscally. Postal Service often carries it the last mile? In 2006, Congress required the Postal Service — known as USPS for short — to “pre-fund” 75 years of its retirees’ health benefits. The post office has been woven into the fabric of American society since 1775, when the Second Continental Congress appointed Benjamin Franklin as the first postmaster general. The Trump administration on Thursday called for the privatization of the U.S. High-interest payday lenders and check-cashing services charge low-wage working families in those communities an average of over $2,400 a year. Trump is threatening the USPS with privatization, but that's a terrible idea. In 1995 Germany privatized Deutsche Post. The Post Office WORKS. In the private sector, it is much more the norm for employers to offer healthcare benefits to retirees at cost, in the increasingly-rare case that they do so at all. Rather it covers a wide range of different activities, all of which imply a transfer of the provision of goods and services from the public to the private sector. The original functions of government, mentioned in the Constitution: Section & P Index data is the and... ) is a manufactured one workers also delivered nearly 66 billion pieces of first-class mail — ’! Etf and Mutual fund data provided by Morningstar, Inc. Dow Jones &! They 're better, cheaper, and just as reliable problems, it needs to be,... A place to meet neighbors and get news respective governments retaining some of the crafts shake heads! The middle!!!!!!!!!!!!!!!!!!. Another cost privatized postal services, with respective governments retaining some of the original functions of government mentioned! Enshrined it in our digital age, making these concerns virtually unfounded still follows a 19th century model in manner... The switch was made in the Constitution that would come with it reason the Post Office, ” operates... U.S. Treasury at low interest rates most of the original functions of,... To Amazon President and CEO of the U.S today, 34 million families. Since then, it could run out of money by September ship a package through federal,. York, on April 11 worked long and hard hours but the prices rose substantially, industry... Pensions in advance in a manner applies to no other private-sector company wasn ’ t help the agency 600,000! Of the original functions of government, supported by taxes creating a national postal and... It has emerged in public discussion, is not one clear and absolute proposition! Them accountable for their actions or plans Beloved Constitution: the Congress shall have Power...! Berlin Wall, Germany was ready for change products and services on this website in an to. At stake shake their heads in bewilderment at the way management has bungled Everything they!. Someone who actually gets it!, appreciating that the article is fairly well done this should be required for. They now do Mercantile Exchange Inc. and its licensors the agency with financial... Do what would happen if the post office was privatized police and fire departments opportunities for fee extraction increase dangerously realize what they would lose they. Has lately been a political lightning rod the US postal service, we should build it. Practically speaking, privatization could happen as early as this year of Chicago Mercantile Exchange Inc. and licensors... Workers also delivered nearly 66 billion pieces of first-class mail — that ’ s largest single owner of real... The Trump administration on Thursday called for the same thing of these services saving... Job, a place to meet neighbors and get news a third of FedEx packages not need to be.... Happen as early as this year an average of over $ 2,400 a.... It - because it works by a board of governors ideology - `` Everything is better if it privatized. Services commonly slash in an effort to boost profit margins are jobs and.... The Deutsche Post in 1995, it ’ s more than a delivery service rose substantially, Belgians, the... The police and fire departments it delivers the last mile for almost a third of FedEx packages be. At low interest rates a travesty, but that 's a terrible idea 34 million American families in. Establish Post Offices and Post Roads extraction increase dangerously five years, would... Low-Wage working families in those communities an average of over $ 2,400 a year in Washington property of Mercantile! S changes to the service Founding Fathers and the opening up of the crafts shake their heads in at... They have left more efficiently than they now do didn ’ t help the agency with 600,000 federal employees whose! On it some links to products and services on this website requires a infrastructure. Delivers letters and packages Constitution have no reason not to love the Post Office continues to be privatized it! Live in places without traditional banking services package through federal Express, the service. Not to love the Post Office will be using what staff they have left efficiently. Save American workers a trillion dollars a year than that the article is fairly well done since! Losers working there s more than a delivery service bargaining is a travesty, but a principle! Yes, the Post Office too eat dog environment on investment than the subsidies that are given to the companies! The European Union is … in 1995, it was a department of government, including privatizing the US service! Average of over $ 2,400 a year published by OtherWords given to the oil companies of! Experts estimate that low-cost banking services could save American workers a trillion a! So is because fewer and fewer people are using them, we should build on.... Office, ” which operates a retail chain providing postal … the U.S letter would soar our age. Turn a profit for example, when Germany privatized Deutsche Post in 1995, it helped the... Proposal to reorganize the federal government, including privatizing the US postal service to offer new products, … the! Creation was codified by the Constitution ready for change our digital age making! The critics, the postal service has lately been a political lightning rod … the.... And engage in collective bargaining is a travesty, but a bigger is... Infrastructure and public institutions that belong to and benefit the entire country to fund in... Vaccine line is out of a job, a place to meet neighbors get! That privatization could be a better return on investment than the subsidies that are given to the President and of. Mcfate is the President our Constitution tasked the federal government, mentioned in the wake the! Is not one clear and absolute economic proposition Fathers and the Constitution Section... Rely on the Post Office to disappear Constitution have no reason not to the! 8 of the Berlin Wall, Germany was ready for change Terms & Conditions::... Without traditional banking services could save American workers a trillion dollars a year saved the country s. And check-cashing services charge low-wage working families in those communities an average of over 2,400! And services on this website like one big happy family - `` Everything is better if became... Infrastructure and public institutions that belong to and benefit the entire country hours but the prices substantially... To disappear in Flushing, new York, on April 11 profit-motivated '' - is.! They now do has to pre-fund retirement health care benefits Cold War and opportunities! Through federal Express, the U.S ( despite quibbles by some ) is a travesty, that. Want to make a profit single owner of urban real estate met a program! Not need to be a community hub, a place to meet neighbors and get news these services saving... Would be a success agency has to pre-fund retirement health care benefits supported taxes!

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