Senator Jeanne Shaheen sent out a letter this week which begs rebuttal. “I wanted to take a moment to update you on my work to protect the U.S. Postal Service,” she says. This is a problem. It has been a problem as long as Senator Shaheen has been a Senator from New Hampshire.
It is a problem because the postal commission has requested to reform the USPS. New Hampshire’s senior senator works against recommendations for needed postal reform and that costs us our tax dollars. Shaheen refuses to fix United States Postal Service.
Why would we want to change the USPS?
As it turns out USPS lost $733 million dollars per month in 2019. That’s $8.8 billion dollars for 2019. That is a symptom of a problem. Do we want our tax dollars supporting an entity losing money at such a prolific rate? Does it make sense to support a system that even the postal board of governors wants to change?
So who benefits from the current situation?
Our senator says, “Americans of all walks of life depend on the Postal Service and that’s particularly true in New Hampshire, especially for our rural communities.”
- Well, maybe, and maybe not. These days most of us do our correspondence via SMS, email, and social media. This greatly reduces mail volumes. It is called change, progress.
- In fact, many of us do out banking and bill paying electronically. Perhaps the senator does not have to sully her hands with such things. Who knows why she sees such a pressing need to waste more of our money.
Unbundling the bloviating
The letter from the senator also says, “The COVID-19 crisis has further underscored the importance of the Postal Service as many Americans depend on their mail carriers for essential deliveries, including medications, stimulus checks and tax refunds.” So let’s unbundle that assertion.
- As it turns out the only people as yet paid stimulus checks are those who file electronically. Imagine that. Can you say out of touch?
- Now, let’s address medications. Do you get your meds from the pharmacy? Most of us probably do. If we don’t is there an alternative to the USPS? Why yes, yes there are several.
- Now, as to tax refunds. Again the majority of people file their taxes electronically and the proportion is growing not shrinking. What this tells us is the need is diminishing.
Again from Senator Shaheen’s letter, “I’m always grateful for our mail carriers but especially now as they faithfully work their routes despite the risks to their health and safety.”
- Yes, and we all love babies, puppies and kitties too. But we don’t spend $8.8 billion of tax money on them. Why does Senator Shaheen really support. Flushing $8.8 billion down the crapper. Shaheen refuses to fix USPS.
The Need assertion
The Senator goes on, “The Postal Service needs help to maintain service and protect workers, which is why I’m calling on Congress to deliver this financial support so that post offices and rural delivery services are maintained.” Shaheen refuses to fix USPS.
- Okay, it is time to call Male Bovine Excrement.
- What the senator is doing is supporting nationalized versus private business. She’s a socialist.
- What the senator is doing is pandering to organized labor, specifically the Postal Union.
- No credible threat to rural delivery availability exists.
- There was a proposal for consolidation of facilities.
- There was a proposal for changes in days of service.
The I hate Trump talking point… and the facts of the situation
Our senator says, “Unfortunately, President Trump is trying to force the Postal Service to quadruple its postage rates. Americans, especially seniors and small businesses, cannot afford these sudden increased costs, especially now. To make matters worse, the President has also threatened to privatize the government agency, which is a direct threat to rural delivery, and recently selected one of his political fundraisers to serve as Postmaster General to advance this agenda.”
So let’s unbundle that batch of political assertions.
- The president is in favor of raising postal rates. So is that a good thing or a bad thing?
- The total volume of mail and packages delivered during the year declined by 3.8 billion pieces or 2.6%
- This is driven largely by First-Class Mail declines of 1.8 billion pieces or 3.1%.
- Marketing Mail declines of 1.6 billion pieces.
- Package volume grew slightly at 16 million pieces.
- This is a continuation of a multi-year trend of declining mail volumes and increasing package volumes.
- Notably, package volume growth slowed considerably during 2019
- We know mail volumes are declining and that has been a long term trend not expected to change.
- The 2019 annual USPS report of fiscal results.
- Operating expenses for the year were $79.9 billion which is…
- an increase of $5.4 billion, or 7.3% year over year.
- This was driven by an increase in workers compensation expense of $3.5 billion.
- $3.4 billion was directly the result of changes in discount rates outside of management’s control.
- Compensation and benefits expenses increased by $994 million due to contractual wage increases.
- Retirement benefits expenses increased by $320 million
- This is due largely to the higher amortization costs of unfunded benefits.
- Transportation expenses increased by $323 million due to increases in fuel prices and highway contract rates.
- Controllable loss for the year was $3.4 billion, an increase of $1.5 billion compared to the prior year.
- The net loss for the year was $8.8 billion, an increase in net loss of $4.9 billion compared to 2018.
Stating the obvious
Clearly USPS is an organization with significant issues. There are only two ways to close the gap between revenues and costs. USPS can cut costs or it can raise revenues. USPS is in a market position where it is and has been experiencing declining volumes. The product it sells is less in demand each year.
What should that be telling us. USPS must change. It is a government monopoly. If it does not change its volumes will continue to decline and its costs will continue to rise. The only choices, if we refuse to allow USPS to change, are greater subsidy or privatization.
Senator Shaheen wrote, “I am going to fight this with everything I’ve got… Our nation’s founders intended for the Postal Service to service the entire nation equally and fairly – under no circumstances should the agency be radically restructured for political purposes.” That comes from a woman who has voted multiple time to change the first amendment to the constitution… She can’t see her way clear to supporting postal change… Shaheen refuses to fix USPS.
New Hampshire’s senior senator seems to be in favor of the do-nothing alternative. That will cost you tax dollars.
The senator wrote, “As the Senate negotiates the next COVID-19 relief bill, I am working across the aisle to ensure the Postal Service is able to continue to serve all Granite Staters. Americans need to know that their mail carriers will be there to deliver the essential items they rely on in the months and years ahead.”
- No one remember the last time Senator Shaheen worked on anything that did not benefit the Democrat National Party.
- The senator is one of the most completely and openly partisan senators in the institution.
- Not only does she hate Republicans for being Republican she also does not represent New Hampshire.
- If she represented New Hampshire she would represent all of the people not just the Democrats…