Tuesday, June 26, 2012

Post Office Hunger Strike and Time to Privatize Mail



Postal workers have now gone on a hunger strike to protest the cuts that will be made to the United States Post Service (USPS). Yesterday 10 postal workers stood outside in front of the U.S. Capitol to protest that Congress has done little to help the situation. Representative Dennis Kucinich help lead the rally of the so few. Kucinich made a statement that he would help try to strengthen the Post Office and do what he could to try not to privatize it.

The Post Office is expected to lose $14 billion this year. Last year the Post Office lost around $8.3 billion. With e-mail and texting becoming a common place fewer and fewer people are sending letters. In 2006, Congress required that USPS prefund their retirement health benefits (like most private companies already do) which cost $5.5 billion per year. In order to cover some of these costs the postmaster general Patrick Donahoe has mentioned getting rid of Saturday delivery. The Post Office has a history of threatening to cut Saturday delivery as mentioned in this article however only did it once in 1957.  This of course will help USPS lose less money however won’t put the post office in the black any time soon. As I mentioned in this post last year since the Post Office opened it has lost more than $13 trillion.

Free market solutions like letting FedEx, UPS, DHL and others take over will work wonders. People point out the jobs that will be lost at the USPS if we were to privatize mail. UPS and FedEx would be hiring the qualified workers from USPS to help them with the increase in business. People would save hundreds of hours every year for not having to deal with USPS. Also the increase in business for companies like UPS and FedEx would cause them to earn more money which would lead them to pay more in taxes. At the same time the taxpayers would be saving over $14 billion per year. Other countries like Germany, The Netherlands, and even the EU mentioned in 2008 that they wanted to eliminate national monopolies on the mail system by 2013. Let us let free markets work when it comes to mail.

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