Current Events > USPS on the verge of major collapse due to COVID and vendetta from Trump

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greencheek
04/11/20 12:23:48 PM
#1:


https://www.huffpost.com/entry/postal-service-funding_n_5e90ce94c5b672672149db2b

The U.S. Postal Service will run out of operational funds by the end of September unless Congress intervenes, Postmaster General Megan Brennan told members of the House Committee on Oversight and Reform in a Thursday video conference.

Mail volume has dramatically slowed during the coronavirus crisis due to widespread business closures, and the USPS is bracing for a steep drop in revenue. But its postal workers remain on the front lines of the crisis, handling prescription drug shipments, lab test materials and medical supplies that are crucial to efforts to contain the virus.

Mail-in voting has also allowed the democratic process to survive in the era of social distancing.

The Postal Service, which employs 650,000 people, is asking for $75 billion in aid from the government, and, according to The New York Times, another $14 billion to pay off debt related to a retirement benefits program a whopping $89 billion total.

Yet because the Postal Service technically operates under the executive branch, and President Donald Trump has displayed a bizarre hostility to it since taking office, it seems likely that the agency will receive some pushback.
At a time when America needs the Postal Service more than ever, the reason we are so needed is having a devastating effect on our business, Brennan said in a statement. The Postal Service relies on the sale of postal products and services to fund our operations, and these sales are plummeting as a result of the pandemic. The sudden drop in mail volumes, our most profitable revenue stream, is steep and may never fully recover.

The USPS said the pandemic will increase its net operating loss by more than $22 billion over the next 18 months and by over $54 billion over the coming years.

Rep. Gerry Connolly (D-Va.), who is on the oversight committee, painted a dire picture of the agencys operations in a Thursday afternoon tweet.

The Postal Service will collapse without urgent intervention, and it will happen soon, Connolly wrote, describing his talks with Brennan.

By Friday, a hashtag, #SaveThePostOffice, was trending nationally on Twitter.

We may not fully realize it yet, but theres not a single person who wont feel the impact if it disappears, Connolly wrote in another tweet.

Efforts to pass a fourth coronavirus relief bill were stalled in the Senate this week, as Democrats and Republicans argued over how much aid to include.

The previous, $2 trillion package included support for specific industries hit hard by the crisis namely, the aviation and cruise industries that have screeched to a halt as Americans follow stay-at-home orders in all but a few states.

Its passage led mail industry leaders to ask: If the airlines got so much support, why not them?

The USPS and the mailing industry it supports ($1.6 trillion in sales and 7.3 million private sector workers) is every bit as important as the aviation industry, National Association of Letter Carriers President Frederic Rolando said in a late March statement.

The agencys problems, though, predate the coronavirus crisis as a result of a widespread shift to digital messaging and a federal mandate that the USPS pre-fund its retirement benefits.

https://twitter.com/GerryConnolly/status/1248334335658336256
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ScazarMeltex
04/11/20 12:24:49 PM
#2:


This is intentional. He wants it to fail so they can justify privatizing it.

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Jabodie
04/11/20 12:27:47 PM
#3:


Can't wait to send my mail via Trump Postal Service.

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uwnim
04/11/20 12:27:56 PM
#4:


A nation without a postal service shouldn't even be allowed to call itself a nation, tbh. It would be indicative that we are on the route to becoming a failed state.

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Correct_Facts
04/11/20 12:28:49 PM
#5:


Ah yes, it's always Trumps fault. News flash: The USPS hasn't been economically viable in YEARS
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Southernfatman
04/11/20 12:29:01 PM
#6:


ScazarMeltex posted...
This is intentional. He wants it to fail so they can justify privatizing it.

That.

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DevsBro
04/11/20 12:29:06 PM
#7:


WTF USPS could survive just off of the letters companies send me about refinancing my house, opening credit cards and switching car insurance.

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Hexenherz
04/11/20 12:29:32 PM
#8:


it's amazon's fault, amazon walks into the post office and throws its package on the ground and says "handle this for me"

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Antifar
04/11/20 12:30:02 PM
#9:


I don't think we should expect our mail service to be profitable, for the same reason we don't expect public schools to turn a profit.
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rodu_jr
04/11/20 12:31:10 PM
#10:


what are the odds USPS ends up in a family member's hands?
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CrazyandLazy
04/11/20 12:31:15 PM
#11:


Correct_Facts posted...
Ah yes, it's always Trumps fault. News flash: The USPS hasn't been economically viable in YEARS

Trump this Trump that. They're foaming at the mouth with the same rhetoric.
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Weezy_Tha_Don
04/11/20 12:32:17 PM
#12:


Correct_Facts posted...
Ah yes, it's always Trumps fault. News flash: The USPS hasn't been economically viable in YEARS

lmao youre on a roll. shitposting it up in every topic doesnt get tiring?

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#13
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AzurexNightmare
04/11/20 12:34:38 PM
#14:


I don't give a crap. Let it shut down so I can laugh my ass off.

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DevsBro
04/11/20 12:36:07 PM
#15:


Coming soon: UPS now handles letters too. Now hiring people with experience in letter and package delivery to handle the increase in business. Boom, problem solved.

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CrazyandLazy
04/11/20 12:36:18 PM
#16:


Weezy_Tha_Don posted...
lmao youre on a roll. shitposting it up in every topic doesnt get tiring?

He's not wrong. USPS has been on life support since forever
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uwnim
04/11/20 12:37:47 PM
#17:


Antifar posted...
I don't think we should expect our mail service to be profitable, for the same reason we don't expect public schools to turn a profit.
This is true, there isn't really any reason why it should need to be profitable.

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Hinakuluiau
04/11/20 12:40:06 PM
#18:


DevsBro posted...
Coming soon: UPS now handles letters too. Now hiring people with experience in letter and package delivery to handle the increase in business. Boom, problem solved.
If you want the price of mail to go up like crazy
Or people in economically nonviable delivery areas (such as most rural areas) will get mail only once a week or so where there is little profit

As mentioned in this topic, the mail should not be a for-profit company.

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E32005
04/11/20 12:40:16 PM
#19:


that corky is now suspended xD

imaging destroying our simple postal system. imagine voting trump.
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AlisLandale
04/11/20 12:41:13 PM
#20:


@CliffClaven


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s0nicfan
04/11/20 12:44:16 PM
#21:


The postal service is near collapse because Congress created this ridiculous scheme like two decades ago to help cover budget shortages that forced the Postal Service to prepay for retirement and health benefits for all their employees for like 80 years or something like that. It means they have to sink a massive amount of their profit into that system and causes them to operate in the red when, if they were a normal business, they would be operating in the black.

Edit:
https://www.bloomberg.com/opinion/articles/2018-04-04/congress-not-amazon-messed-up-the-u-s-postal-service
Then there is the Postal Accountability and Enhancement Act of 2006 (PAEA), which some have taken to calling "the most insane law" ever passed by Congress. The law requires the Postal Service, which receives no taxpayer subsidies, to prefund its retirees' health benefits up to the year 2056. This is a $5 billion per year cost; it is a requirement that no other entity, private or public, has to make. If that doesn't meet the definition of insanity, I don't know what does. Without this obligation, the Post Office actually turns a profit.

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thronedfire2
04/11/20 12:45:30 PM
#22:


ScazarMeltex posted...
This is intentional. He wants it to fail so they can justify privatizing it.

he's gonna be sad when Amazon takes it over

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ScazarMeltex
04/11/20 12:50:54 PM
#23:


s0nicfan posted...
The postal service is near collapse because Congress created this ridiculous scheme like two decades ago to help cover budget shortages that forced the Postal Service to prepay for retirement and health benefits for all their employees for like 80 years or something like that. It means they have to sink a massive amount of their profit into that system and causes them to operate in the red when, if they were a normal business, they would be operating in the black.

Edit:
https://www.bloomberg.com/opinion/articles/2018-04-04/congress-not-amazon-messed-up-the-u-s-postal-service
Yep, that the first part of the plan to privatize it.

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greencheek
04/11/20 2:27:55 PM
#24:


Correct_Facts posted...
Ah yes, it's always Trumps fault. News flash: The USPS hasn't been economically viable in YEARS
dude you're suspended, must be incorrect facts
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Wii_Shaker
04/11/20 2:33:39 PM
#25:


Correct_Facts posted...
Ah yes, it's always Trumps fault. News flash: The USPS hasn't been economically viable in YEARS
No but it would be Trump's responsibility if it goes under.

I don't see how he's so keen on keeping big business afloat but not a government organization that people rely on.

Antifar posted...
I don't think we should expect our mail service to be profitable, for the same reason we don't expect public schools to turn a profit.

Agree. Whether something actually makes money shouldn't be the measure of value in this country. The USPS is invaluable to the United States, which is why every previous president never allowed it to fail.

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IShall_Run_Amok
04/11/20 2:45:35 PM
#26:


Destroying vital functions of the government to own the libs.

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Cheater87
04/11/20 2:48:10 PM
#27:


The GOP wanted to bring down the post office to privatize it for decades.

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Solid Sonic
04/11/20 2:48:15 PM
#28:


Physical delivery is a relic and due for a collapse.

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AlCalavicci
04/11/20 2:48:50 PM
#29:


Imagine a world where the USPS disappears, and then all of a sudden an app is created for on demand letter delivery service . Postal Dashers

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HylianFox
04/11/20 2:49:40 PM
#30:


IShall_Run_Amok posted...
Destroying vital functions of the government to own the libs.

so business as usual for the GOP, then

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gunplagirl
04/11/20 2:52:54 PM
#31:


uwnim posted...
A nation without a postal service shouldn't even be allowed to call itself a nation, tbh. It would be indicative that we are on the route to becoming a failed state.
You're really late on that, just look at our unemployment numbers and uninsured numbers. There's third world nations where, even if the healthcare on average is eh, still at least offers it to their citizens.

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#32
Post #32 was unavailable or deleted.
DevsBro
04/11/20 5:47:50 PM
#33:


Hinakuluiau posted...
If you want the price of mail to go up like crazy
Hell yes I do

I'm sick of getting so mich junkmail.

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Smashingpmkns
04/11/20 5:56:09 PM
#34:


This shouldnt even be possible
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The Nintendo Master
04/11/20 5:57:05 PM
#35:


The trend towards paying bills and whatever electronically nowadays has put a major strain on the postal service. I believe my auto insurance actually gave me a discount for switching to e-billing. All those letters and bills that would have been sent via post previously were what paid the postal service. With the virus going on and the reduction in business due to it, that's just going to be the nail in the coffin. It would have happened regardless of who was president. I do hope they can find some sort of solution, but I can't picture one coming at the moment.

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s0nicfan
04/11/20 5:59:07 PM
#36:


The Nintendo Master posted...
The trend towards paying bills and whatever electronically nowadays has put a major strain on the postal service. I believe my auto insurance actually gave me a discount for switching to e-billing. All those letters and bills that would have been sent via post previously were what paid the postal service. With the virus going on and the reduction in business due to it, that's just going to be the nail in the coffin. It would have happened regardless of who was president. I do hope they can find some sort of solution, but I can't picture one coming at the moment.

The solution is less regulation. If the postal service was allowed to operate independently as they had for many decades without having to deal with some sort of stupid pension loophole that Congress only put in place to siphon more money out of them, they would be fine.

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Yadoken
04/11/20 6:02:03 PM
#37:


Amazon mail delivery service now included with Prime!

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Marmitecashews
04/11/20 6:46:21 PM
#38:


DevsBro posted...
Hell yes I do

I'm sick of getting so mich junkmail.
If America's postal service is privatised, you will probably see an increase in the amount of junk mail that you receive.

That's what happened to me when the Royal Mail was privatised.

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DevsBro
04/11/20 6:57:13 PM
#39:


Marmitecashews posted...
If America's postal service is privatised, you will probably see an increase in the amount of junk mail that you receive.

That's what happened to me when the Royal Mail was privatised.
Well then I at least get the satisfaction of knowing the sender wastes $10 a pop sending me that crap.

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Hinakuluiau
04/11/20 7:07:22 PM
#40:


The Nintendo Master posted...
I do hope they can find some sort of solution, but I can't picture one coming at the moment.
Not to sound complacent or naive, but this sort of news happens every couple of years. And every couple of years, they manage to figure out a way to fix this issue.

In February of this year, the House passed a bill that would remove the pension loophole s0nicfan has posted about. Obviously the Senate has just sat on it since then, but this sort of thing has several simple fixes that just require the passing of legislature.

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ElatedVenusaur
04/11/20 10:16:15 PM
#41:


Hinakuluiau posted...
Not to sound complacent or naive, but this sort of news happens every couple of years. And every couple of years, they manage to figure out a way to fix this issue.

In February of this year, the House passed a bill that would remove the pension loophole s0nicfan has posted about. Obviously the Senate has just sat on it since then, but this sort of thing has several simple fixes that just require the passing of legislature.
It seems unlikely this will be fixed, given the indifference of Majority Leader McConnell and the the insane grudge Trump has against the USPS because he perceives it as being advantageous to Jeff Bezos, of whom he is undoubtedly jealous as all hell and definitely has a personal vendetta against.

It would be a terrible blow to our nation if the USPS ceased to exist in its current form. It's an efficient performer of its duties and no for-profit entity would be in any way willing to deliver mail everywhere. It could also be used for different things as well (a popular leftist proposal supported by people like Sen. Bernie Sanders, Progressive Caucus Chair Pramila Jayapal, and CE's congresswoman Alexandria Ocasio-Cortez all support it becoming a community banking service as well, for example).
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lightwarrior78
04/11/20 10:33:07 PM
#42:


Hinakuluiau posted...
Not to sound complacent or naive, but this sort of news happens every couple of years. And every couple of years, they manage to figure out a way to fix this issue.

In February of this year, the House passed a bill that would remove the pension loophole s0nicfan has posted about. Obviously the Senate has just sat on it since then, but this sort of thing has several simple fixes that just require the passing of legislature.
Yeah, I think concerns about if the post office can compete in an electronic world are older than some of the posters here, and that was just email killing personal letters. E-billing and e-payments have limited it more into a dispensary largely for junk mail and smaller things from Amazon. Of course they've never been able to truly adapt because that would require cost cutting, and heaven help you if you go after those pensions.

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darkprince45
04/11/20 10:38:23 PM
#43:


Nobody should get mail anymore except packages and purchases. Everyone should just a federal email that links with voter registration, dmv services, taxes, disabilities, etc

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PIITB415
04/11/20 10:59:03 PM
#44:


darkprince45 posted...
Nobody should get mail anymore except packages and purchases. Everyone should just a federal email that links with voter registration, dmv services, taxes, disabilities, etc

I agree.

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Questionmarktarius
04/11/20 11:07:46 PM
#45:


darkprince45 posted...
Nobody should get mail anymore except packages and purchases. Everyone should just a federal email that links with voter registration, dmv services, taxes, disabilities, etc
Meanwhile, in 2045 or so:
"US Email Service on verge of major collapse due to vendetta from Barron Trump"
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FL81
04/11/20 11:17:33 PM
#46:


ScazarMeltex posted...
This is intentional. He wants it to fail so they can justify privatizing it.
What's the downside

FedEx and UPS both already provide a more reliable service

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Questionmarktarius
04/11/20 11:22:44 PM
#47:


FL81 posted...
What's the downside
i, uh, finally have to set up online bill-pay with the gas company?
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IShall_Run_Amok
04/11/20 11:23:02 PM
#48:


FL81 posted...
What's the downside

FedEx and UPS both already provide a more reliable service
USPS always leaves packages at my door, UPS and FedEx always stuff them in my mailbox. That's What I Call reliability.

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Solar_Crimson
04/13/20 10:46:41 AM
#49:


...There are people here who actually want the USPS to collapse?

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