If the Postal Service goes under…

Unless something changes, it is only a matter of time—maybe a very short time—before the U.S. Postal Service goes out of business.  The USPS has all the hallmarks of a failing business.  It is cutting back on service, letting employment fall by attrition, driving its remaining employees to work harder, and resorting to short-term expedients to keep going.

When and if the Postal Service fails, I predict the following things:

  • Winter-Weather-Ohio_Gree_20110201083920_640_480An uptick in the U.S. unemployment rate.  The U.S. Postal Service employed 528,458 people in 2012, the lowest number since 1978 and down from a peak of  797,795 in 1999.  For comparison, General Motors employed 91,000 before filing for bankruptcy.
  • Rate increases, service reductions or both from Federal Express or United Parcel Service.  Both companies rely on the USPS to fill gaps in their service.
  • A sell-off of the Postal Service’s assets—buildings, vehicles, computers and much else—at bargain rates.  The Postal Service doesn’t keep track of the market value of what it owns.  Its purchase cost for its land and buildings was $27 billion, but much of the its real estate holdings are in prime locations in the center of town, and undoubtedly worth many times the original price.

Postal CarrierMail delivery is one of the functions of government established by the U.S. Constitution.  There is no good reason why it can’t continue.  One problem is the mandate that the Postal Service fund the retirement benefits of employees 75 years in advance—some of whom may not be of working age before the USPS is defunct.  No private business would ever assume such a burden. While this mandate has been temporarily eased, the larger problem is that, although Congress in 1970 mandated that the Postal Service be self-supporting, it did not grant the Post Service’s managers the same authority that corporate managers have to set rates and determine what services to offer.  So it has a mandate to compete, but in handcuffs.

So-called conservative Republicans in Congress have along sought to abolish or privatize the Postal Service because they oppose public service on principle.   I give them credit for at least fighting for their principles, which is more than I can say for the majority of the so-called liberal Democrats, including President Obama, who do not stand up either for their principles or their core supporters.

Click on You Should Be Outraged By What Is Being Done to Our Postal Service for a fuller report by Dave Johnson for Alternet.

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