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Anti-Free Market Republicans Want to Kill the USPS to Create a Monopoly for UPS and FedEx
Anyone who operates a business understands that maintaining funds for employees to keep their enterprise running smoothly is as important as providing a quality product. If a business is fortunate enough to cover employee expenses for an entire year, they could most likely weather any storm whether it is a slowdown in sales or increased costs for materials, utilities, and supplies. However, there is no operation that could survive if they were required to keep employee funds in reserve for 75 years, and any sane business owner would know that unrealistic expectation would be tantamount to deliberately destroying even the most profitable business. Unfortunately, Republicans imposed such a requirement on the United States Postal Service (USPS), and their goal of destroying one of the most successful government programs since the nation’s founding is nearing fruition.
Republicans have long sought to dismantle government to hand it over to privatization and enrich their corporate donors, as well as to advance the notion that government services are failures and cannot succeed unless they function under the private control of free market capitalists. What rankles Republicans more than anything are government programs that are popular, successful, and self-sustaining, and it explains their decades-long assault on the Social Security Trust, Medicare, and recently, the Postal Service. In 2006, the Republican-controlled Congress passed a law, the Postal Accountability and Enhancement Act (PAEA) that forced the USPS to “prefund its future health care benefit payments to retirees for the next 75 years in a ten-year time span” that meant it had to set aside billions of dollars in reserve yearly to pay health benefits for employees it has not hired, or not even born yet. No other government program, such as the Defense Department, or private corporation for that matter, is required to do anything like PAEA because it would bankrupt them within a decade if not sooner, and it is precisely Republicans’ goal for the USPS.
The Postal Service is a constitutionally mandated agency and although the corporate-controlled media and politicians push the “postal service crisis” meme without pause, it is a “manufactured crisis” to annihilate some of the GOP’s favorite targets; public employees, unions, decent wages, healthcare, retirement, and of course, a popular and efficient government agency. One of the biggest drivers (85%) of the deliberately created Postal Service budget deficit originates with the PAEA pre-funding mandate regardless that “the pension is over-funded and reserves for retiree health care are far higher than the federal government as a whole” according to the post office Inspector General. The USPS is also “required to break even” unlike any other department or agency, including the Defense Department, so the GOP cannot refute the claim their sole purpose in PAEA is breaking the Postal Service within ten years. Without the PAEA, the USPS would not have “a net deficiency of nearly $20 billion, but instead be in the black by at least $1.5 billion,” and it would destroy the Republican myth that all government operations break the nation and require dismantling and tendering to corporations.
One of the reasons Republicans drool to end the USPS is that it delivers millions of parcels reliably every single day, and at a low cost that keeps private carriers’ (FedEx and U.P.S.) prices in check, and its efficiency and low cost are why local post offices are so busy; their service and cost cannot be matched by private companies. Because corporate carriers cannot compete, Republicans saddled the USPS with PAEA to break it, dismantle it, eliminate government jobs, destroy unions, and give FedEx and U.P.S. a monopoly on deliveries and free rein to raise rates without competition.
Not surprising is that the Koch brothers’ think tank, Cato Institute, with FedEx Chairman and CEO on Cato’s Board of Directors, has driven the effort to “privatize the Postal Service since 1996. Cato claims it is crucial to “free the mail from the government’s grip” to “hand over its public assets to private enterprise.” The Koch brothers are also out to eliminate the largest remaining public union in the nation and directed Cato to pen an anti-union screed, “The Postal Service Can’t Afford Unions” where they assert “A big drag on the USPS’s bottom line is the pesky union, and with 85% of that workforce protected by collective bargaining agreements, employees are a giant anchor on a sinking ship.” It is no secret the Koch brothers want drive good paying jobs into poverty level wages, end retirement benefits, and distribute what is left of the Postal Service to their friends at FedEx and U.P.S. The result will be rate increases, minimum wage jobs, and seized assets like public buildings and means of transport to control the frequency, availability, and flow of correspondence to areas of the country convenient to private industry, and all because it is another successful public service that proves government works for the people.
The Postal Service takes no taxpayer dollars, funds itself with services and products, with union help reduced its workforce by 110,000 employees, supports a trillion dollar industry and more than 8 million jobs, and has a workforce of 40% women, 40% minorities, and 20% veterans, many of them disabled. It also handles, at a low cost, more than 40% of the world’s mail more efficiently than any carrier, and it accomplishes it all under Republican prohibitions on raising rates, requirement to break even, pre-funded retiree health benefits for 75 years, and still serve every man, woman, and child daily in all areas of the country. For a party that abhors government regulations, Republicans put debilitating controls on the USPS informing that what they really hate are successful government programs, jobs, and unions, as well as women and minorities that make up 80% of the Postal Service workforce.
The Postal Service provides a necessary, highly efficient, and extremely popular public service, and its civic mandate has proven priceless to American society, business, and the idea that government is successful, popular, provides decent jobs, and still be cost effective. In 1899, the Postmaster General labeled the USPS “the greatest business concern in the world,” but it is supposed to be a crucial public service, and if the GOP were not determined to break it and allowed it to operate under their so-called “free market capitalism” paradigm, it would be both the greatest business concern in the world and a precious public service; a combination Republicans cannot abide.
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robyn ryan
Feb. 15th, 2013 at 6:39 pm
The Post Office is critical for freedom. You need an independent way for the people and the government to communicate.
Lost check? Too bad. sue.
Lost documents. Too bad. Sue.
Lost absentee ballots? Too bad. Sue.
Nefer
Feb. 15th, 2013 at 7:12 pm
Where did all the comments go?
Trevor Duncan
Feb. 16th, 2013 at 4:29 am
I am a small business owner, and I ONLY use USPS for all of my shipping needs. I would encourage others to consider doing the same. This is one organization that we cannot do without. This is a disturbing article, glad I came across it.
Ron
Feb. 16th, 2013 at 1:01 pm
The author fails to realize that the USPS is anything but free-market, and absolutely hinders free-market capitalism by relying on government subsidies. This makes it difficult for non-subsidized FedEx and UPS to have competitive prices since their primary competitor does not even have to turn a profit. Ending the USPS (which I think is a terrible idea) is actually a whole lot closer to creating a free-market scenario, instead of one where FedEx and UPS have to compete with a company (USPS) that is perpetually in the red.
djchefron(Moderator)
Feb. 16th, 2013 at 1:09 pm
Article I, Section 8, Clause 7 of the United States Constitution, known as the Postal Clause or the Postal Power, empowers Congress “To establish Post Offices and post Roads”.
Next
CSET
Feb. 16th, 2013 at 8:23 pm
In 1840 many private companies delivered mail in large cities and ignored small towns. These companies charged such high prices that congress stepped in and gave the Post Office a monopoly on mail. This reduced mail prices for everyone!
I have a friend at UPS who is a manager. He recently attended a class where he was told when the Postal Service is privatized, UPS plans to raise rates 20%.
Those that do not study history are doomed to make the same mistakes!
Shiva(Moderator)
Feb. 16th, 2013 at 8:27 pm
Of course. Someone at the top has to get rich.
The best we can do is do everything online(statements, bills etc) and let them perish
Nik DeWitt
Feb. 16th, 2013 at 8:18 pm
This article should not be news to anyone. I have been saying this for a long time. The U.S.P.S is one of the last forms of “private” communication left to the average citizen, not to mention the most affrdable way to transfer goods from one point to another. It should come as no surprise that corporations are doing every thing they can to not only put it out of business, but to take over it’s infrastructure. They managed to pull it off with the telephone industry and just look how well that worked out for service and costs to the average user. The Koch brothers and their ilk will turn the U.S. into a third world nation unless we fight to stop them.
val nostdahl
Feb. 17th, 2013 at 3:29 pm
Thank you for telling the truth on the postal crisis, having lost a spouse as a letter carrier who recieved orders for having first paid in extra to his retirement in 2000, 2001, under the 1997 budget reconcilatio act then recieved orders because 2 retirement systems were overfunded and overpaid, so a 3rd profit robbing retirement escrow account could be taken from the profits he had helped earned, be worked in to the ground by denying his fair labor standards act for replacement workers, due to retirement and injury in the office and have him also denied a supreme court memorandum and work with the illigal removal of staff just so other can take a icon like the United States post office which was formed to win the american revolution and predates the constitution and the forming of the nation and congress, is indeed a travesity for a former USMC and patriot working for the USPS, and because of corporations wanting it for more greed and profit of their own he is deceased because of that action. few have read the full story or comphrend the actions carried out to destroy the USPS or how it has changed , many will not even bother to read how it helps democracy and freedom to have the United State Postal Service as in the book online to buy at barns and nobels or amazon. com or free to read parts of it on google.books .com, the Post Office, its past record, it present condition and it potential relation to the new world era, Daniel Calhoun Roper, 1913-1917.
nor will they check the links that have brought this situation about , from www.AWPU 3800, first area triounty local PA library, stress in the workplace artical, how the ongoing violation of the guiding principles of the USPS are creating a toxic work environment, or www.billburrasjounral.org... misc elevator page, ‘ phoney excuses for diverting USPS revenues, or myths versus facts, or ALEC/Koch cabal the privitization of the USPS for Ups and FedEx, by bob sloan, vltp, net. april 2012, or michigan american postal workers union, the truth about the postal crisis, or even www.savethepostoffice.com , than you for your support against this evil action, and may it help bring comphresion for the remaing postal workers who want to get out alive and retire.
Sixto Gallardo
Feb. 18th, 2013 at 12:48 am
Save the United States Postal Service!!
Save Saturday Delivery! Save American jobs for Veterans, for minorities, for Union workers, for American workers!