Originally Posted By a goofy guy I read or heard on the news that the U.S. Postal Service gained over a billion dollars and yet the postage went from 37 cents to 39 cents and is due to go up again next year. This is just a bureaucratic form of "The rich getting richer"! Any thoughts?
Originally Posted By Kar2oonMan <a href="http://money.cnn.com/2006/01/06/news/economy/postage.reut/?section=cnn_us" target="_blank">http://money.cnn.com/2006/01/0 6/news/economy/postage.reut/?section=cnn_us</a> >>The increases of around 5 percent will help build a congressionally mandated reserve fund. According to a 2003 law, the U.S. Postal Service must put $3.1 billion into an "escrow account" by Sept. 30. Postal service spokesman Jim Quirk said Congress was to decide within 180 days after passage of the law what the money would be used for, but that has not happened. "Two years have passed and that determination has not yet been put into law." Without the reserve requirement, the service could have avoided a rate increase this year, Quirk said. The postal service ended its 2005 fiscal year on Sept. 30 with $1.4 billion in net income on operating revenues of $69.9 billion.<< Interesting. I wonder what Congress had in mind for this 'reserve fund?' $3.1 billion in an escrow account? Why?
Originally Posted By goodgirl The billion dollars was probably their revenue. Any idea what their expenses were? FWIW...a friend of mine is the postmaster for one of the post offices in my area and explained postal pricing to me once. If the cost of a postage stamp for a first class letter were based only on going to metropolitan communities, it would probably only be a penny or two. The USPS is actually quite efficient in moving large quantities of mail from Portland to New York City, and from Atlanta to Talahasee. And Yakima to Sacramento. Those costs increase, however, when we start looking at rural areas. When my friend started with the USPS he had a route in Idaho that took him 8 hours a day. And yet he only had 9 stops along the way. When the USPS was organized and postage costs were established it was determined that the cost of a first class letter from Me to My Neighbor Next Door would cost no different than it would Me to Bob in New York City or Mary in Podunk Wyoming.
Originally Posted By a goofy guy <<I wonder what Congress had in mind for this 'reserve fund?' $3.1 billion in an escrow account? Why?>> Why indeed? Maybe another government "scam" to take more money from those who really need it!
Originally Posted By a goofy guy <<I wonder what Congress had in mind for this 'reserve fund?' $3.1 billion in an escrow account? Why?>> Why indeed? Maybe another government "scam" to take more money from those who really need it!
Originally Posted By a goofy guy <<40 cents to send a letter -- still a great deal.>> True, you can send 2 letters and still get change back from your dollar, however, the fact remains the U.S. government is taking YOUR money just because "they" can!
Originally Posted By imadisneygal "however, the fact remains the U.S. government is taking YOUR money just because "they" can!" No, they're taking my money in return for a service and I defy you to find any other business, anywhere, that will take a letter from your hands and fly or drive it to anywhere in the United States for only .40. It doesn't exist. I'm sorry but I don't feel fleeced on this one. It's still a heck of a deal.
Originally Posted By TomSawyer But...but.. it's the gummint! It must be bad because it's the gummint!
Originally Posted By cmpaley And what's even more interesting is that it's a function that is SPECIFICALLY called for in the Constitution.
Originally Posted By peeaanuut profit margin in a business is set by the consumer. If I sell a product for 10x what I pay for it and people buy it, what am I hurting? If people stop buying it than there is an issue. But people still pay it. Personally I dont have anything to yap about, I dont think I have sent out a letter using US mail in a very long time. I dont even use it for packages. I send them out UPS usually. Its just not a service I use. Heck its even rare that I receive anything via the mail. All my bills are electronicly sent to me. I think the only thing I have gotten recently (That wasnt address to "resident") was for my tags on my car. Before that, I cant remember.
Originally Posted By Kar2oonMan >>But...but.. it's the gummint! It must be bad because it's the gummint!<< Not necessarily. I just want to know what Congress intends to do with the $3 billion that made this increase necessary. A couple more cents isn't going to hurt me, and if an increase is warranted, I've got no beef. But in the article I linked above, the spokesperson for the USPS is saying THEY didn''t need the increase -- Congress madated it and still hasn't decided what for. That's nothing to be concerned about?
Originally Posted By melekalikimaka I wonder how the postal service was effected by people paying all of their bills online? Maybe it doesn't matter at all.
Originally Posted By Kar2oonMan Good question. I wonder what percentage of people are doing that as of right now? I know the USPS makes a ton of money from direct mail advertising.
