Why not allow States and the Postal Service the ability to declare bankrupcy?

[JEDI]

Postal Service: More financial loss as mail delivery slumps
https://wtop.com/government/2018/05/postal-service-more-financial-loss-as-mail-delivery-slumps/

The Postal Service’s report shows a net loss of $1.3 billion between January and March (2018), larger than a $562 million loss in the same period last year, due in part to rising fuel costs and added wage expenses.

They have 11 straight years of financial losses.


Cities are allowed to declare bankruptcy so why not allow the Postal Service and States to do the same?

 

[ivwshane]

Postal Service: More financial loss as mail delivery slumps
https://wtop.com/government/2018/05/postal-service-more-financial-loss-as-mail-delivery-slumps/

The Postal Service’s report shows a net loss of $1.3 billion between January and March (2018), larger than a $562 million loss in the same period last year, due in part to rising fuel costs and added wage expenses.

They have 11 straight years of financial losses.


Cities are allowed to declare bankruptcy so why not allow the Postal Service and States to do the same?

Two things; the post office is mandated by the constitution and the post office has been hamstrung, on purpose, by Republicans in Congress by mandating an unprecedented amount of their revenue to go to retirement plans.

 

[nickqt]

Postal Service: More financial loss as mail delivery slumps
https://wtop.com/government/2018/05/postal-service-more-financial-loss-as-mail-delivery-slumps/

The Postal Service’s report shows a net loss of $1.3 billion between January and March (2018), larger than a $562 million loss in the same period last year, due in part to rising fuel costs and added wage expenses.

They have 11 straight years of financial losses.


Cities are allowed to declare bankruptcy so why not allow the Postal Service and States to do the same?

Two things; the post office is mandated by the constitution and the post office has been hamstrung, on purpose, by Republicans in Congress by mandating an unprecedented amount of their revenue to go to retirement plans.

This.

The USPS was profitable until the Republican congress passed a poison pill law in 2006 as they were leaving their majority position in Congress, to force the USPS to fund its pension plan for the next 75 years, NOW.

Again, Republicans say the government doesn't work, and while in office, sabotage the government so it doesn't work. Over and over again.

 

[NostaSeronx]

This.

HR6407#109 => Two democrats and one republican.

Since the law passed the Senate on a unanimous consent vote, all 44 Democrats and the one independent in the Senate consented to the bill. What is even more compelling is the November 2006 election provided the Democrats with a majority in both the House and the Senate, so the Democrats could have filibustered the bill and had it reintroduced in the 110th Congress to prevent its passage. Additionally, two of the three co-sponsors for this bill were Democrats.

 

[Jhhnn]

Democrats apparently don't really mind running the post office at a loss. It's also basically impossible for them to oppose secure pensions for USPS employees.

 

[Greenman]

HR6407#109 => Two democrats and one republican.

Interesting how that became the republicans torpedoing the USPS. I guess everyone just says it all time and it becomes the "truth"?

Back on topic: Lots of people will take a very serious hit if this is allowed.

 

[pcgeek11]

Typical. If it is bad the republicans did it...

Same old bull from the same old people...

 

[who?]

The requirement is to fund retiree health benefits, The Federal employees retirement system has a very small pension supplemented by Social Security and the Thrift Savings Plan which is like a 401(k).

 

[theeedude]

USPS can run a profit by cutting deliveries to low density rural areas. But then Republicans are going to whine about it.

 

[boomerang]

Anyone truly interested in the topic as it relates to states might find this interesting reading.

Extending Bankruptcy Law to States: Is It Constitutional?

 

[13Gigatons]

The postal service is just that a service. It's not intended to run like a business. It's not intended to obsess over profits. I also don't want to pay $10 to send a first class letter so the CEO (postmaster general) can get paid $20 million a year. Truthfully if all that pension money was returned the postal service bottom line would look a lot better.

For those that still don't understand the postal service is like infrastructure (a road or bridge) that everyone gets to use. We make the profits and the USPS takes one for the Team America.

 

[sdifox]

Require USPS to fully fund pension, then declare bankruptcy to wipe out pension. Brilliant!

 

[Jaskalas]

If the country enacted a suitable Basic Income, and the tax necessary to pay for it, companies and governments would be off the hook for retirement and pension plans. Wouldn't be any of our business what people do with their finances and they'd have the (limited) means to take care of themselves. Without those pyramid schemed costs our nation's finances would be stable and... sustainable.

A budget and/or financial plan that depends on growth not to go bankrupt, should be unconstitutional. It directly causes these problems.

 

[glenn1]

If the country enacted a suitable Basic Income, and the tax necessary to pay for it, companies and governments would be off the hook for retirement and pension plans. Wouldn't be any of our business what people do with their finances and they'd have the (limited) means to take care of themselves. Without those pyramid schemed costs our nation's finances would be stable and... sustainable.

A budget and/or financial plan that depends on growth not to go bankrupt, should be unconstitutional. It directly causes these problems.

No I prefer that places like Chicago pay for their own retiree costs they’ve avoided saving for rather than offloading the costs onto the rest of us. If their city taxes have to go to 70 or 80% then so be it.

 

[ivwshane]

No I prefer that places like Chicago pay for their own retiree costs they’ve avoided saving for rather than offloading the costs onto the rest of us. If their city taxes have to go to 70 or 80% then so be it.

Well I guess they’re all good as dead then because it’s not like progressives here are going to reach into their pockets in charity to help. “Collective action problem” must now be the largest cause of mortality in this country.

So which is it? Deal with your own problems or its a collective action problem? You seem to be talking out of both sides of your mouth depending on how you are affected.

 

[HomerJS]

Typical. If it is bad the republicans did it...

Same old bull from the same old people...

If Republicans had left it alone in 2006 they would have been fine.

 

[ch33zw1z]

So which is it? Deal with your own problems or its a collective action problem? You seem to be talking out of both sides of your mouth depending on how you are affected.

"Seems to be" is putting Glenn's nonsense nicely

 

[pcgeek11]

If Republicans had left it alone in 2006 they would have been fine.

That is my point, it wasn't just the republicans.

Duh.

 

[who?]

In '69 or '70 there was an illegal strike by postal workers in NY because they were overworked and underpaid. A law was enacted that converted the Post Office department into the Postal Service. The employees were allowed unions and union contracts in exchange for the USPS being run like a business and breaking even with no taxpayer subsidy after 1981.

 

[frozentundra123456]

In '69 or '70 there was an illegal strike by postal workers in NY because they were overworked and underpaid. A law was enacted that converted the Post Office department into the Postal Service. The employees were allowed unions and union contracts in exchange for the USPS being run like a business and breaking even with no taxpayer subsidy after 1981.

And how did that work out?\=
Seems to me the postal service, even in these time of e-mail, etc is an essential service that should be funded by the government, not forced to run like a business. That said, I used to work for the federal government, and looked with longing every year at the health benefits and low premium costs of the USPS workers. I think the postal service should be integrated into the rest of the federal government agencies, and share health care and retirement systems. Contrary to what many people think, Federal employees have a mediocre at best (high premiums and poor coverage) health care system and the retirement system is nothing exceptional either. I think this would reduce costs considerably for the USPS.

 

[Thebobo]

Typical. If it is bad the republicans did it...

Same old bull from the same old people...

So it's not true? please provide some proof.

 

[Thebobo]

HR6407#109 => Two democrats and one republican.

*****(2 days after it was introduced it was passed by both senate and house-- That is Fast!)***

Last Action: Dec 20, 2006: Became Public Law No: 109-435.

Other Titles: -- Postal Civil Service Retirement and Health Benefits Funding Amendments of 2006
***
Votes: Dec 8, 2006: This bill passed in the House of Representatives by voice vote. A record of each representative’s position was not kept.
Dec 9, 2006: This bill passed in the Senate by Unanimous Consent. A record of each senator’s position was not kept
------------------------------------------------------------------------------------------------------------
How is that possible/legal? Some pretty shady stuff going on imo.

How the Postal Accountability and Enhancement Act was passed
Full info https://www.democraticunderground.com/10022335782

 

[who?]

Postal workers are in the same Federal Employees Retirement System as all other federal employees have been in since it was created during the Reagan administration. The civil service retirement system was eliminated as a choice for federal workers hired on or after Jan. 1 1987.

 

[Darwin333]

And how did that work out?\=
Seems to me the postal service, even in these time of e-mail, etc is an essential service that should be funded by the government, not forced to run like a business. That said, I used to work for the federal government, and looked with longing every year at the health benefits and low premium costs of the USPS workers. I think the postal service should be integrated into the rest of the federal government agencies, and share health care and retirement systems. Contrary to what many people think, Federal employees have a mediocre at best (high premiums and poor coverage) health care system and the retirement system is nothing exceptional either. I think this would reduce costs considerably for the USPS.

Yup, this is what happens when you guarantee to pay peoples healthcare for life which is sometimes a good bit longer than they were even employed.

 

[Thebobo]

Postal workers are in the same Federal Employees Retirement System as all other federal employees have been in since it was created during the Reagan administration. The civil service retirement system was eliminated as a choice for federal workers hired on or after Jan. 1 1987.

Yep I joined the feds in june 1987