Re: [NTLK] [OT?] Spam?

Hello,

--- On Wed, 7/22/09, Dan <dan@dbdigitalweb.com> wrote:

> Ok on this I must comment on. The USPS does not take
> taxpayers money. While it is a government run entity the only money it
> receives currently is postage.
 
It's been a long-held myth that the USPS is the only government agency that "pays for itself." So it's not just you who holds this view.

However, if you read their annual reports, there is a line item entitled "U.S. government appropriations — received." This is the money they get from taxpayers. For example, the 2005 annual report lists an amount of $503 million. And while this amount has been less over the years, it is still considerable. Which means that the USPS is still taxpayer subsidized.

Once that line item is no longer featured in their annual report, then they can truly be said to be a stand-alone entity.

>It has been this way for a long time (since the 1970's anyway, I forget >the exact date but I think it is much longer).

The USPS was made into a corporation-like independent agency under Nixon in the early 70's. However, as long as they have access to the General Services Administation, can borrow money at below-market rates from the Federal Government, and receive the "appropriations" mentioned above, they are still taking taxpayer monies to remain in operation.

This is beside the fact that they received three billion dollars in taxpayer funds as "start-up" money, an advantage that FedEx or UPS never
enjoyed. Money, incidentally, that they have never had to pay back: it was a "gift" from the taxpayers.

> Granted they are in trouble now and it has been said they
> may run out of money before the end of the year. With the recession
> and the other parcel carriers they have been hit hard. However they
> also have very good benefits (again being government) for their
> employees. They may have to drop these perks or make other changes to
> survive. Either that or they will need a bailout (and this would be tax >payers money). I hope that changes are made instead of a bailout.

If they don't get a bailout in the form of another taxpayer "appropration,"
I'll eat my underpants. :(

Alas, the USPS has always required taxpayer help to remain a going concern and I'm afraid that now a recession has hit, that's going to go double.

I, too, would like to think that they would be required to make "other changes" in order to survive, but this is, after all, a government agency we are talking about. And there has never been any such thing as a failing government agency, regardless of how they allocated their resources, or how many tax dollars they sucked up. It's just the way of things. [shrugs]

Best,

James Fraser

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Received on Wed Jul 22 10:38:08 2009