Comments on: USPS Still a Loser

By: Paul Hoffmann

Paul Hoffmann — Wed, 21 Aug 2013 13:22:31 +0000

How can the USPS “lose” $740 million or any money? If they run a deficit, where the does the extra money come from?

By: Antonio Germano

Antonio Germano — Tue, 20 Aug 2013 16:55:26 +0000

The two mailman posters seem to be, as Rush Limbaugh would term them if they called into a radio show, seminar callers, or seminar posters, in this case. I have heard these same arguments from my brother and an acquaintance on Facebook recently.

The gist is that there is nothing wrong with the USPS, but what about losses before this supposed doomsday law to pre-fund pensions? That law wasn’t responsible for previous mismanagement, was it? You can’t have your cake and eat it, too.

Sawtooth46 has it right. Profit is defined as what’s left over after all operating expenses have been satisfied. I would think that the unions and the Statists would be happy that the retirees are going to get what they were promised, rather than being stiffed like so many others are and will be. I guess when it comes down to a choice between two sacred cows, one of them has to be sacrificed. It’s fun watching the USPS’s supporters tap-dance around this issue.

By: Realist

Realist — Tue, 20 Aug 2013 05:05:29 +0000

Sawtooth46 and Billingsley are right, ND Mailman and Art are wrong. The federal government provides huge subsidies to the USPS by providing below-market interest rates on billions of dollars of loans. This is a subsidy, just in kind of a sneaky form. Check the facts. Thanks very much. In addition, the government shelters the USPS from competition from more efficient rivals. There’s no dollar payout involved, but this protection is equivalent to a huge subsidy from customers who are hurt by their lack of choice.

By: Art the mailman

Art the mailman — Sat, 17 Aug 2013 21:53:47 +0000

K. Lloyd Billingsley has it wrong. Sawtooth46 has it wrong. Thankfully, ND Mailman has it correct. Postal finances are improving as the economy improves. Operating revenue grew by 3.6% in the third quarter compared to the same period last year, and expenses were down. Shipping and package delivery revenue is increasing dramatically, up 8.8% this quarter compared to the same period last year, and up 7.5% on a YTD basis. Revenue from shipping and package delivery has steadily increased over the past three years. If not for pre-funding, USPS would have reported a $660 milion profit through the third quarter this year. The solution is obvious -– eliminate mandatory pre-funding of $5.5 billion per year. Source: Please ignore the drivel posted by K. Lloyd Billingsley and by Sawtooth46. And check the facts. Thanks very much.