boomboomsroom

The BBR staff has been rolling through some states in the Deep South for the last few days.   While there we managed to take only a glimpse at the news.  And, voila, it seems like the “deep state” is alive and well.

The quest to oust Trump is nearly four years old and going strong.  It sounds like the plight of the United States Postal Service is the latest raging problem that the left is placing the blame for at the feet of the President.

It’s so bad that Trump’s two months ago appointed Postmaster General Louis DeJoy will be beaten up like a USPS package by the time he is finished testifying before Congress next week.   Nancy Pelosi is so concerned about the Post Office all of a sudden that she decided to call the House back to Washington and back to order.  The House hasn’t been in order in years, but we digress.

TV networks will cover it like it’s the next Russian Collusion.  And, that’s because it is.  The Post Office’s problem isn’t Trump.  The Post Office’s problem is the Post Office.  And, it’s been that way for a long time.  Actually, it’s been that way for far too long.  A few facts, none of which will be brought up by the left as the excoriate DeJoy follow.

The Post Office, if it were a business would be out of business.  It’s insolvent and has been for a long time.  It lost 2.2 billion dollars last quarter to add to the 78 billion its lost since 2007. The government’s own Accountability Office wrote a May report and said that “the USPS current business model is not financially sustainable.

The Wall St Journal article last week called it a Blockbuster service in a Netflix world.  That about sums it up, doesn’t it?

In 2006 mail volume peaked at 213 billion pieces.  It’s down 33% and counting as of last year from that high.  But, during that same time frame, the number of delivery points (addresses) served by them increased from 146 to 160 million.   In other words, costs continue to rise while revenue shrinks.  Hello?

Walk-in retail customers are down 23% from the 2010 all-time high.  During that same time, USPS locations shrunk only 4%.

They have an exclusive right(monopoly) to your mailbox that carries a universal obligation or promise to carry a letter anywhere for 55 stinking cents.

One route in Montana serviced 6 days a week like all others, covers 191 miles to hit 272 mailboxes.  In extreme northern Arizona, mules take mail down an 8-mile path to the base of the Grand Canyon.

The USPS workforce is 600k people strong and organized by seven different unions.  Congress in 2013 rejected a proposal to save 2 billion a year back then and in every subsequent year by stopping Saturday regular service.  And, remember next week, this will all be the current administration’s fault.

The USPS retiree health care plan has billions to invest but is mandated to invest those Washington’s only in U.S. Treasurys.  Ten-year Treasury note returns have been falling for years and return about 1/2 of 1% per annum currently.  Do you think health care costs only rise by about 1/2 of 1 percent per year?  If so, we have a jackass to sell you that walks 16 miles a day in the Grand Canyon.

DeJoy reassigned 23 top-level managers while citing a substantial decline in volume, a broken business model, and a management strategy that has failed to address these issues.  It sounds like he is doing his job, so it’s no wonder Congress is mad.

Let the conspiracy theories begin.  Former President Barrack Obama said last month that “those in power are undermining the Postal Service in the run-up to the election that is going to be dependant on mailed-in ballots.

The Democrats, in their latest House relief bill, want to give the Post Office $25 billion to compensate for “revenue forgone due to coronavirus.”  The sickness of the financial state of the post office isn’t due to coronavirus.  It’s due to Al Gore’s invention called the internet.

What the USPS needs is major reform at a minimum.  Would you mind if your mail only came three days a week as but one example?

That will be lost in the name blame game next week.  The House will kick DeJoy around, blame Trump, and kick the mailbox down the road.