Reading the July 2009 Government Accountability Office report sparks about as much excitement as reading last month’s headlines, yet I can crack a smile at its earnest concern.”GAO is adding the US Postal Service’s (USPS) financial condition to the list of high-risk areas needing attention by Congress and the executive branch to achieve broad-based transformation.” FULL ARTICLE
Source link: http://blog.mises.org/10405/post-office-finances-now-officially-high-risk-no-kidding/
Post Office Finances Now Officially High Risk — No Kidding
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Mr.Spooner is smiling in his grave.
I caught a glimpse of CNN at work the other day, and they were doing a poll about how much people use the postal services in this age of email and instant messaging, and whether the government should do away with the Post Office. One can only hope that they would go so far.
If they did close the post office. The employess would still be retained and given higher wages; because it would be unfair for someone to lose thier job.
Vitor, I expect that Mr. Spooner is not only smiling but laughing hysterically.
Actually, the problem with the GAO is politicians never listen to them.
The GAO often uses private industry as a model for measuring the efficiency (or lack thereof) of their government counterparts. They often call for the total scrapping of bureaucratic boondoggles like the YF-22. They are often the sole voice in DC talking about the insolvency of many entitlement programs.
The problem is their solutions are nearly always politically impossible, even if realistically necessary.
Many large firms have the equivalent of a GAO. The difference is, if such firms fail to heed such warnings, they go bust.
Where’s the “private option” to introduce competition and lower costs? Oh, that argument only works when the government wants to acquire more control, not concede it.
The Post Office’s shortfall will be covered by the Federal Financing Bank. See the FFB statement and search for “Postal Service”.
http://www.ustreas.gov/ffb/financial-statements/fy2008_07.pdf
Looks like the “cheap mail” come with a pretty hefty tax-payer funded surcharge.
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