Can the Post Office Survive?

[Optimus Prime]

WASHINGTON (AP) - The U.S. Postal Service is bracing for a first-ever default on billions in payments due to the Treasury, adding to widening uncertainty about the mail agency's solvency as first-class letters plummet and Congress deadlocks on ways to stem the red ink.

With cash running perilously low, two legally required payments for future postal retirees' health benefits — $5.5 billion due Wednesday, and another $5.6 billion due in September — will be left unpaid, the mail agency said Monday. Postal officials said they also are studying whether they may need to delay other obligations. In the coming months, a $1.5 billion payment is due to the Labor Department for workers compensation, which for now it expects to make, as well as millions in interest payments to the Treasury.

The defaults won't stir any kind of catastrophe in day-to-day mail service. Post offices will stay open, mail trucks will run, employees will get paid, current retirees will get health benefits..........

Post office nears historic default on $5B payment: Associated Press Business News - MSN Money

[BIG E]

This is the idiots in the Senates fault pure and simple. They should have switched to a 5 day delivery or less years ago. They should also go ahead with plans to shut down some post offices and distribution centers not to mention they need to restructure their pension system. The Senate will wait until they are completely bankrupt to try and act.

[geauxboy]

A feeble attempt made to incorporate with FedEx and UPS was only a bandaid.

[atceagle]

Can anybody tell me why they are having to pay for future health benefits now and does any other agency do this?

[Cosmic201]

Originally Posted by atceagle

Can anybody tell me why they are having to pay for future health benefits now and does any other agency do this?

No other agency does it.

They have to pay those benefits because the Senate passed this back in 2001/2002ish because it made the federal balance sheets look better.
The ****ed up thing is? Those billions of dollars are not even going into a specific fund set up just to pay the benefits down the road, it just goes into the general fund.

They need to cut down to 5 days mail. I would say cut a Tuesday or Wednesday to prevent having 2 days in a row without mail service.
They need to close all of those post offices that simply lose money by the bucket load.

[dtc]

Originally Posted by Cosmic201

No other agency does it.

They have to pay those benefits because the Senate passed this back in 2001/2002ish because it made the federal balance sheets look better.
The ****ed up thing is? Those billions of dollars are not even going into a specific fund set up just to pay the benefits down the road, it just goes into the general fund.

They need to cut down to 5 days mail. I would say cut a Tuesday or Wednesday to prevent having 2 days in a row without mail service.
They need to close all of those post offices that simply lose money by the bucket load.

Maybe they could consider the out of the box notion of charging a realistic price for delivery. Rather, perhaps the idiots in Congress will reform the USPS so it can run without Congress meddling.

[SeminoleMarine]

Originally Posted by Cosmic201

They need to cut down to 5 days mail. I would say cut a Tuesday or Wednesday to prevent having 2 days in a row without mail service.
They need to close all of those post offices that simply lose money by the bucket load.

I think they could get by with 4 day delivery. Mon, Wed, Fri & Sat. Never more than one day between deliveries. Close the underachieving offices (as you said) and get rid of the dead weight. No reason to have two or three people standing around the post office doing nothing but staring at the customers while one person waits on everyone. Close the offices on delivery days except Sat. Open them on Tues. & Thurs. from 7:00am-7:00pm. and Sat. from 8:00am-4:00pm instead of noon. That way everyone has a chance to get to the post office on the days they are open. Make the stamps .50 already instead of upping it .01 every other year.

[Jackavelli]

Just like the gov, everyone knows how to fix it but nobody will for fear of losing votes

[iron error]

Just go to $1 for first class.

If that seems high, realize that it costs $.20 to $.25 per mile to drive anywhere, just for gas.

So delivering something important hundreds of miles seems worth it for $1.00.

[purvis_guy]

And just think what will happen when the gubmint is in charge of our healthcare.

[BHM]

I honestly can not remember the last time I put something in our mailbox.

[Yeti]

Wallstreet= bailout.
Car makers= bailout.
Airlines= bailout.

United States Postal Service= ???

[Sarcastic]

Originally Posted by Yeti

Wallstreet= bailout.
Car makers= bailout.
Airlines= bailout.

United States Postal Service= ???

I'm not saying you're wrong. But to be fair, we need banks, cars, and airplanes.

[BIG E]

Originally Posted by Yeti

Wallstreet= bailout.
Car makers= bailout.
Airlines= bailout.

United States Postal Service= ???

They don't need a bailout. They need the shackles cut off so they can do what needs to be done.

[krushing]

Start by cutting back rural delivery to 3 or 4 days a week. Get rid of the separate cadallac health insurance system for postal workers. Use Saturday's as a sort only day. No delivery.