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Blog Sharing 10/01/2012 – Post Office Defense

I am sharing my response with a person on G+ who has (hopefully had) a misunderstanding of the reasons for the Post Office fiscal challenges.

The post office is a service and not a profit motivated entity much like police departments, military, and other government services. The complaint about the government requiring the Post Office to come up with the pensions for their current and future employees for the next 75 years is a burden that is fiscally laughable. I would dare you to name a company or government entity that has this kind of onerous requirement. We are talking about funding the pensions for employees that are not even born yet much less working for the Post Office. It is unheard of and a political/fiscal poison pill that was foisted on them by the Republicons, see http://www.govtrack.us/congress/bills/109/hr6407#.

You need to understand that not one dime of federal money goes to Post Office, see http://tinyw.in/aaGL  and under paragraph (d) of Title 39, Section 101.1, “Postal rates shall be established to apportion the costs of all postal operations to all users of the mail on a fair and equitable basis.”. They are dependent on the revenue that they generate in the sale of its services. If you look at the fact that they do not receive government or tax payer money you should ask then why are they at the management mercy of Congress? To answer that question you will have to read about the history of the Post Office, In order to restructure their fiscal structure in any way, the Post Office must get the approval from Congress. I am talking about raising the price of services, what services they are allowed to offer, what routes they or times that they are allowed to run, and any and all fiscal adjustments that they could make in order to meet the ridiculous 75 funding of pensions.
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