The real story on the US Postal Service and Saturday delivery shut down

[the DRIZZLE]

So they are paying for future liabilities? As in paying for something that hasn't happened? As in pre-paying? Did you read what you wrote?

Again, there is nothing wrong with good planning but you don't kill yourself in order to do it.

No, they are paying the PRESENT value of FUTURE liabilities. This can be a bit confusing for those without finance or accounting backgrounds so let me give you a simple example.

Let's say they know they have to pay an employee $10,000 in 10 years, and that the pension fund is expected to earn a 5% return between now and then. They would have to put away $6,139 today to have the pension be fully funded.

In general, pensions are supposed to be fully funded so the pensioners do not have to rely on the institution having the extra cash laying around in the future to make good on their obligations. USPS does not currently meet this standard, and the law gave them 10 years to catch up and get fully funded, which they should have been in the first place. This will protect retirees and taxpayers should the USPS fall into financial distress in the future.

 

[Brainonska511]

Do people really care anymore about the USPS and their problems? I say good riddance. If I ran my business in the red just ONE year I'd be out of business. Yet, they haven't turned a profit in years and the taxpayers foot the bills for these morans...

Let free market prevail and kick these guys to the curb.

The USPS receives no taxpayer money.

The free market will screw over lots of people in what would be low-profit areas.

Why do government services have to turn a profit? The USPS provides a valuable service to the American people at very low costs.

We should kick the military to the side as well. They've never turned a profit either. We'll hire mercenaries for our military expeditions instead.

 

[1prophet]

The amazing thing is now the GOP is saying that the USPS needs to lay people off and close post offices because it's not making a profit. It's not making a profit because the GOP saddled them with a ridiculous money sink.

http://postalemployeenetwork.com/news/2011/08/post-office-makes-a-profit-congress-wont-let-it-keep/

Post office makes a profit Congress won’t let it keep

and the post office subsidizes Fed Ex and UPS a by transporting packages that they deem unprofitable which they routinely drop off by the truckload at the post office.

Yet all the brainwashed fools want to close the post office and rely on (unionized) UPS and Fed EX which don't and won't deliver to many locations.

 

[DaveSimmons]

From the article linked above:
http://redtape.nbcnews.com/_news/20...nt-accounting-behind-postal-service-woes?lite

It seems clear that Congress raided the USPS to make the deficit look a little smaller. Without that cash grab it would be in the black even without the $2 billion savings from ending Saturday letter delivery.

And yes, UPS and Fedex are using USPS to deliver some packages, even in urban areas. I got one yesterday from Land's End and I'm in the greater Seattle area.