Thursday, April 12, 2012

The Interesting History Of The USPS


The U. S. Post Office began in July of 1775 in the great city of Philadelphia,
Pennsylvania, and the first Postmaster General was Benjamin Franklin. The purpose
was to unite everyone in the country with a communication system that cost the same for
everyone in the country. The U.S. Constitution contains language mandating that this
continue. Obviously, modern times have changed communication but our Constitution
has not. And, as the country has evolved, Congress has passed legislation directing
the Postal Service on how to continue fulfilling its constitutional duty. One such law
changed the U.S. Post Office Department to the U.S. Postal Service (USPS). The law
also requires that USPS satisfy its constitutional mandate while breaking even using
only postage revenue (in other words, no tax payers’ dollars). USPS has been successful
doing this with only a 45 cent stamp. Great job, USPS!
Unfortunately, in 2006 Congress passed another law directing that USPS pay for postal
retirees 75 years in the future. No other federal agency or private company has this
obligation. Even though this law has nothing to do with the mandate in the Constitution,
USPS has paid $5.5 billion every year for future retirees. It is this 2006 law that is
causing the financial woes of the USPS. And, as a result, USPS has had to consider all
options to save money, including cuts in days of service, closing postal facilities, and
eliminating jobs.
The USPS employs over a half million people by itself, and is responsible for at least
that many more jobs in the private sector. PostalUniformXpress.com, a leading online
store for low priced postal uniforms and accessories, is one of the many organizations –
with dozens of employees – that relies on USPS. Can’t we keep Americans working?
Does the USPS need to pay for retirees that are not born yet? Should the 2006 law be
changed?

Tuesday, April 10, 2012

Letter carriers protest against new bill

Letter carriers nationwide are protesting before the doors of their Senators’ offices. This week, the
Senate is considering legislation, S 1789, which would end Saturday mail delivery as well as phase out mail delivery to the porches and doors of homes. Letter carriers claim S 1789 will be destructive to the
Postal Service.

Since 2006, the Postal Service has been in the “red” financially, due to legislation that requires it to
deposit $5.5 billion each year to prefund for retirees up to 75 years from now. Unfortunately, this
prefunded money has been taken away from the Postal Service and used by Congress to offset other parts of the budget that have nothing to do with the Postal Service.

Without the 2006 law, the Postal Service would operate in the “black,” making a profit based only on the postage collected for mail. Incredibly, the Postal Service receives no taxpayer dollars and is totally off budget. And, year after year, the Postal Service ranks as “highly trusted” by Americans, receiving a favorable rating of about 90%.

What do you think Congress should do? Does the 2006 law make sense? Should S 1789 be passed?