Good  morning.......

Last night we left off with these thoughts: I do not believe there is any way to continue with the Post Office as we know it. However it is still a necessary element in the country. We will make our recommendations tomorrow.

Well today has arrived: What is today's post office, a business or agency of the government?

Because of the Postal Reorganization Act of 1970, the U.S. Postal Service functions as a regular, tax-supported, agency of the federal government. According to the laws under which it now operates, the U.S. Postal Service is a semi-independent federal agency, mandated to be revenue-neutral. That is, it is supposed to break even, not make a profit. Whoever created this nonsense should be horsewhipped.

The foundation of the modern post office is bureaucratic double speak --- nonsense. In 1982, U.S. postage stamps became "postal products," rather than a form of taxation. Since then, the bulk of the cost of operating the postal system has been paid for by customers through the sale of "postal products" and services rather than taxes. A skunk by any other name stinks as much.

Each class of mail is also expected to cover its share of the costs, a requirement that cause the percentage rate adjustments to vary in different classes of mail, according the costs associated with the processing and delivery characteristics of each class (oh my gosh there we go again, pure oomgalagala).

U.S. Postal Service rates are set by the Postal Regulatory Commission according to the recommendations of the Postal Board of Governors.

 

The USPS gets its authority as a government agency under Title 39, Sec101.1 of the United States Code which states, in part:

"(a) The United States Postal Service shall be operated as a basic and fundamental service provided to the people by the Government of the United States, authorized by the Constitution, created by Act of Congress, and supported by the people. The Postal Service shall have as its basic function the obligation to provide postal services to bind the Nation together through the personal, educational, literary, and business correspondence of the people. It shall provide prompt, reliable, and efficient services to patrons in all areas and shall render postal services to all communities. The costs of establishing and maintaining the Postal Service shall not be apportioned to impair the overall value of such service to the people."

Under paragraph (d) "Postal rates shall be established to apportion the costs of all postal operations to all users of the mail on a fair and equitable basis."

Then again there's another curve ball created in a manner only the US Congress can do.

No, the USPS is a Business!

The Postal Service takes on some several very non-governmental attributes via the powers granted to it under Title 39, Sec 401 in part states: 

--- power to sue (and be sued) under its own name;
--- power to adopt, amend and repeal its own regulations;

--- power to "enter into and perform contracts, execute instruments, and determine the character of, and necessity for, its expenditures";

--- power to buy, sell and lease private property; and,
--- power to build, operate, lease and maintain buildings and facilities.

All of these are typical functions of a private business. However, unlike other private businesses, the Postal Service is exempt from paying federal taxes. USPS can borrow money at discounted rates, and can condemn and acquire private property under governmental rights of eminent domain.

The USPS does get some taxpayer support. It receives round $96 million budgeted annually by Congress for the "Postal Service Fund." These funds are used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas. A portion of the funds also pays USPS for providing address information to state and local child support enforcement agencies.

Under federal law, only the Postal Service can handle or charge postage for handling letters. Despite this virtual monopoly worth some $45 billion a year, the law does not require that the Postal Service make a profit -- only break even. Still, the US Postal Service has averaged a profit of over $1 billion per year in each of the last five years. Yet, Postal Service officials argue that they must continue to raise postage at regular intervals in order make up for the increased use of email.

Under paragraph (d) of  Title 39, Sec 401, "Postal rates shall be established to apportion the costs of all postal operations to all users of the mail on a fair and equitable basis."

No, the USPS is a Business! The Postal Service takes on some several very non-governmental attributes via the powers granted to it under  Title 39, Sec 401, which include:

--- power to sue (and be sued) under its own name;

--- power to adopt, amend and repeal its own regulations;

--- power to "enter into and perform contracts, execute instruments, and determine the character of, and necessity for, its expenditures";

--- power to buy, sell and lease private property; and,

--- power to build, operate, lease and maintain buildings and facilities.

All of which are typical functions of a private business. However, unlike other private businesses, the Postal Service is exempt from paying federal taxes. USPS can borrow money at discounted rates, and can condemn and acquire private property under governmental rights of eminent domain.

The USPS does get some taxpayer support. Around $96 million is budgeted annually by Congress for the "Postal Service Fund." These funds are used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas. A portion of the funds also pays USPS for providing address information to state and local child support enforcement agencies.

Under federal law, only the Postal Service can handle or charge postage for handling letters. Despite this virtual monopoly worth some $45 billion a year, the law does not require that the Postal Service make a profit -- only break even. Still, the US Postal Service has averaged a profit of over $1 billion per year in each of the last five years. Yet, Postal Service officials argue that they must continue to raise postage at regular intervals in order make up for the increased use of email.

What began as a simple review of what the post office is today I found we needed to know how we got here.

I'll skip the fluff and get down to the brass facts. They will be in no particular order of importance. Let us keep in mind there is a strong desire to reduce the size and power of our government. I found it very compelling to pull the plug on what some believe is an anachronism. Than would be overly simplistic, a mistake. Here are the Issues of the Day position:

Getting out of the business of delivering mail is no small undertaking. Congress would need to set a time certain for the transition from the postal service we are familiar with today and make it more functional and restrict its services to those which are not reasonable to expect from a private service such as UPS or FedEx.  Getting the post office out of many of its current functions such as parcel post would encourage many private ventures to fill the void.

My first reaction to the above suggestion is what to do with the workers displaced in such an arrangement. What to do with the facilities? Well, there is still a substantial amount of work needed to be done. First class mail, second class and parcel post will always have a role in society. On the one hand there will always be a need for mail distribution and collection. The is true for special delivery and registered mail. There are numerous functions the post office fills which we may prefer to keep as a public function.

Buildings --  Many of our older post offices such as fall River and New Redford Massachusetts could become dual purpose with parts of each converted to commercial enterprises, apartments, business offices, etc. Most are centrally located in their respective communities. Lease back arrangements could be made between the new owners to meet the 'new' post office needs. It does not seem wise to eliminate one monopoly and merely create another. Most post offices are located in central areas of commercial activity. Some could be converted to meeting some of our school building needs, public medical facilities, etc.

There are numerous other functions the current postal real estate could be used for.

How to transition over to a slimmed down post office and convert the various properties and business functions to private industry. For starters the current postal workers union is manned with tens of thousands of mail delivery and pick up specialists. I recommend we convert the postal workers unions to reorganize into local companies for the purpose of filling the new needs for operation and delivery of the millions of pieces and parcels. If it sounds like an ISOP you're very perceptive.

The above would allow for a seamless transition from many government functions to private  industry. while at the same time utilizing the best assets of those already trained and working in the postal industry.

It is not easy to find people to replace thre tens of thousands of people necessary to transition away from public to private enterprise.

Besides all else, what would we be able to do with the millions of mail boxes  currently on our street corners and on our properties.

My Lady Fair has just informed me it has been an hour since she told me lunch is ready and I told her "just a couple more minutes." I've just about run out of my couple of minutes.

I'd love to hear your thoughts on what to do with the post office. mvl270@yahoo.com

Ciao.......Moe