Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/18/2014 (2 years ago)

Catholic Online (www.catholic.org)

If the USPS were a private business, they'd be out of business.

The U.S. Postal Service, beloved by some, loathed by others, is $99.8 billion in debt and it does not appear that without drastic action from Congress the troubled agency will ever be salvaged.

The Post Office has been upside-down with debt for decades. Now that debt is growing rapidly.

The Post Office has been upside-down with debt for decades. Now that debt is growing rapidly.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

3/18/2014 (2 years ago)

Published in Politics & Policy

Keywords: USPS, liability, funding, costs, price, solutions


LOS ANGELES, CA (Catholic Online) - CNSNews outlined the numbers earlier this week, breaking down the unfunded liabilities faced by the USPS as reported by the Government Accountability Office (GAO).

The Postal Service faces these liabilities:

$48.3 billion, retiree health care
$17.2 billion, workers' compensation
$19.8 billion, federal pension plan for workers hired before 1984
$500 million, federal pension plan for workers hired after 1984
$15 billion, outstanding debt

And those liabilities have increased by 62 percent since 2007.

CNSNews reports via the GAO that the USPS is "high risk" and continues to lose even more money that projected.

The USPS has borrowed all the money it can from the Treasury and cannot legally borrow any more, unless Congress changes the law to permit additional borrowing.

Have you heard of Catholic Team Global yet? Here's what it is...

The USPS says that a steady decline in first class mail which is expected to continue in the years to come, means the agency will make less and less money. The service says it may have to cut deliveries to save money. Already, the proposal to end Saturday service has been put forward by the Postal Service, but public backlash caused Congress to cut the proposal, despite the fact the cut would have saved billions of dollars.

There remains a debate over what to do next. Massachusetts senator Elizabeth Warren (D-MA), a favorite on the left, recently proposed one novel solution that could help. Warren proposed replacing payday lenders, which many accuse of being predatory, with a bank-USPS partnership.

Banks, she noted in her proposal, are sometimes difficult to access for the poorest Americans and large banks also tend to ignore the financial needs of these citizens. By cooperating with financial institutions and converting portions of USPS facilities to extend basic banking infrastructure to poor communities, the USPS may see an increase in revenues.

The USPS would not manage the money, but would essentially rent out part of their space to financial institutions. This plan may gain traction as the payday loan business suffers a hard crackdown by the Consumer Financial Protection Bureau.

Payday lenders, who often extend small cash loans and cash checks for fees may be regulated out of business or even outlawed in the coming years. At the least, it will end triple-digit interest rates, but it may also deprive poor communities of the only immediate resource they have for cashing checks and borrowing money.

Partnering with banks that agree to play fair could provide easier access to banking and financial services that the poor need. It could also help finance the Postal Service.
Projections suggest this would bring $9 billion in annual income to the USPS. However, this is less than 10 percent of the funds the USPS needs to remain solvent.

There are still other questions. How much of the postal service's paid staff could be replaced by automation? In recent decades improvements in technology have substantially reduced the workforce needs as well as speeding the pace of mail delivery. Are there further improvements that can be made?

The USPS is beloved by many Americans because it is still the least expensive way to communicate by letter. Private firms such as UPS and Federal Express charge a lot more for sending packages, although they do so more rapidly and generate profits while doing so. Still, no person wants to be charged several dollars to send a Christmas card. Therefore, we're looking at a future where taxpayers continue to subsidize the postal service-even if they never use it. That raises an issue of fairness, not to mention efficiently, if the money to find the service has to be filtered through the federal government first.

Ultimately, the USPS, as beloved as it might be, cannot finance its own operation. In the world of private business, it would be out of service.

A difficult choice must be made. We must either accept paying the true cost to mail a letter, which is likely several dollars per, or we need to reduce the staff and operation of the USPS to the point it can finance itself.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for June 2016
Universal:
Human Solidarity: That the aged, marginalized, and those who have no one may find-even within the huge cities of the world-opportunities for encounter and solidarity.
Evangelization: Seminarians and Novices: That seminarians and men and women entering religious life may have mentors who live the joy of the Gospel and prepare them wisely for their mission.



Comments


More Politics & Policy

Ted Cruz did WHAT at the Republican National Convention? Watch

Image of Ted Cruz was booed when the crowd realized he wouldn't be endorsing Donald Trump.

By Kenya Sinclair (CALIFORNIA NETWORK)

Ted Cruz was booed during the Republican National Convention Wednesday night when it became clear he wouldn't be endorsing Donald Trump. LOS ANGELES, CA (Catholic Online) - When the Texas senator took the stage Wednesday night, his 23-minute remarks began well.He ... continue reading


The people have won! Trump becomes official nominee Watch

Image of Donald Trump is the people's choice for president.

By David Drudge (CALIFORNIA NETWORK)

Donald Trump is the official Republican nominee for president. Last night, Trump was officially awarded 1,725 delegates to become the nominee.  The total is well above the 1,237 required by the party rules. LOS ANGELES, CA (California Network) - America has a ... continue reading


RNC convention opens with plagiarism accusation, Dems have worst record Watch

Image of The Republican National Convention opened last night with controversy over Melania Trump's speech.

By Marshall Connolly (CALIFORNIA NETWORK)

Republicans kicked off their convention in Cleveland last night with a list of speakers addressing the theme, "Make America Safe Again." The event conveyed low energy, possibly because of the subject matter involved, but it was topped with an appearance by Donald Trump ... continue reading


Making a Difference: A political platform for all the people Watch

Image of

By Tony Magliano

During this month of political conventions, when America's two major parties adopt platforms designed to further their particular goals, it is clear that neither party's goals reflect a genuine total commitment to God, all of God's people and all of God's creation. ... continue reading


Traitorous liar Paul Ryan tries to deceive voters after supporting Obama's radical agenda Watch

Image of Voting for Ryan is like voting for Obama.

By David Drudge (CALIFORNIA NETWORK)

Paul Ryan is asking voters to reelect him because he will stand up to Obama's open borders policy. The problem is, he's had 17 years to do this and all he's done is the opposite. LOS ANGELES, CA (California Network) - Paul Ryan, the treasonous, ineffective rat of a ... continue reading


Judge rules: Police need a warrant to track your phone Watch

Image of Police now need a warrant to track your phone.

By Marshall Connolly (CALIFORNIA NETWORK)

A federal judge has ordered that police cannot track cell phones without a warrant. The ruling may impact thousands of cases. LOS ANGELES, CA (California Network) - Police may not track phones without a warrant. This is the latest ruling in a narcotics case in a ... continue reading


Nancy Pelosi, Boasting of her Devout Catholic faith, is a Heretic Watch

Image of Congresswoman Nancy Pelosi

By Deacon Keith Fournier

It is time to take the verbal gloves off once again - especially, as the 2016 election campaign begins in the United States of America. It must be said that Nancy Pelosi is engaging in more than scandal. She is engaging in the "obstinate denial of truths which ... continue reading


Democrats freak out as Clinton drops in polls Watch

Image of Clinton is still confident of victory, but she shouldn't be. Trump has surprised people before and he could surprise Clinton. Democrats are worried.

By David Drudge (CALIFORNIA NETWORK)

Democrats are concerned over Hillary Clinton's poll numbers as Trump inches close to Clinton in battleground states. The polls suggest that Trump could win, despite Clinton's greater popularity. LOS ANGELES, CA (California Network) - A private meeting at the Capitol on ... continue reading


LEAK? Trump picks Pence as Clinton continues to collapse Watch

Image of Trump appears to have decided on Indiana Gov. Mike Pence as his running mate.

By David Drudge (CALIFORNIA NETWORK)

Donald Trump has picked Indiana Gov. Mike Pence as his running mate. A Republican insider has leaked the news a day early. Trump has a conference planned for tomorrow to make the formal announcement. Trump has not confirmed this information, so it remains speculative. ... continue reading


Liberal Liars: Why did the New York Times ignore major fraud involving Congress? Watch

Image of

By Abigail James (CALIFORNIA NETWORK)

An important member of Congress has been indicted with multiple charges of fraud involving a major charity scam. How is it that a major news publication like the New York Times could initially ignore fraudulent charges involving Congress? LOS ANGELES, CA (Catholic ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

Daily Readings

Reading 1, Jeremiah 7:1-11
1 The word that came to Jeremiah from Yahweh, saying,2 'Stand ... Read More

Psalm, Psalms 84:3, 4, 5-6, 8, 11
3 Even the sparrow has found a home, the swallow a nest to place its ... Read More

Gospel, Matthew 13:24-30
24 He put another parable before them, 'The kingdom of Heaven may be ... Read More

Saint of the Day

Saint of the Day for July 23rd, 2016 Image

St. Bridget of Sweden
July 23: Saint Birgitta was the daughter of Uppland's ... Read More