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US Postal Service calls for price increases amid record losses

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 Cinnamon    27,576

The US Postal Service has seen record losses as traditional mail is replaced by electronic means. Without enough money to pay for years of employee benefits, the agency is calling for legislation to enable them to raise their prices.

On Thursday, the USPS reported losses of $2.1 billion in the third fiscal quarter of 2017, compared to a $1.6 billion loss in the same quarter last year.

Over the past 10 years, the USPS has incurred a net loss of $63.3 billion and they project future losses without legislative and regulatory changes.

The agency also warned that it will likely have to default on $6.9 billion in payments for future retiree health benefits and pensions, according to the Associated Press. From 2012 to 2016, the USPS has defaulted on $33.9 billion in Postal Service Retiree Health Benefits Fund prefunding payments.

If their debt is not addressed soon, the American taxpayer will likely have to cover the costs when future employees retire and cash in on their benefits, to which they are legally entitled.


Pensions will do that... 

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 Dr. Evil    2,244

They're only making losses because Congress required them to start prefunding pensions about five years ago. And what other industry is required to do that? If you applied that even to the Fortune 500 half of them would go broke as well, let alone if you applied that requirement to the entire nation.

So the question is: why are they doing that?

And the probable answer is: because they want to sell it, but they want the buyer (e.g. UPS) not to have to pay terrifically much for it.

And so the US taxpayer loses a revered institution to a private corporation at fire-sale prices and after which said corporation will reduce service, fire tens of thousands of workers and pick up a huge amount of inner-city properties and facilities for next to nothing, which it will almost certainly immediately sell, which will pay for it's entire purchase.

Watch it happen.  

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 spooky2    89

The problem seems to be pensions. You can't retire someone at almost full pay, without something breaking. Look at how many union pensioners had their payments cut recently by over 1/2. AND that same union is still billions in the hole. Take a hard look at every US city that was strong union, their in extreme dire straights now. Detroit is a prime example. People seem to think pension money is stagnant, always ready to fund new retirees. It isn't, it gets invested, just like a hedge fund investment. City pensions are the same. Markets goes tits up, bam loss of investment. Municipalities and pensions are still in deep trouble from the 2008 crash. This is why I'm so anti union. Corruption and relinquishing control of your investments to "someone" else. No thanks.

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