tag:blogger.com,1999:blog-4866022460920878229.post845715485038689600..comments2023-09-19T07:45:46.828-07:00Comments on The 52 Week Project: Week 42: USPS BluesStevehttp://www.blogger.com/profile/05171714081043183565noreply@blogger.comBlogger19125tag:blogger.com,1999:blog-4866022460920878229.post-16709772920629987962010-12-04T19:49:14.814-08:002010-12-04T19:49:14.814-08:00Carioca updates:
USPS delivered. The graphing ca...Carioca updates:<br /><br />USPS delivered. The graphing calculator arrived in Barcelona -- presumably via Baltimore -- on December 3, seven days after it was mailed.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-3259476730737641422010-12-04T19:47:22.520-08:002010-12-04T19:47:22.520-08:00Carioca's update:
USPS delivered. The graphi...Carioca's update:<br /><br />USPS delivered. The graphing calculator arrived in Barcelona -- presumably via Baltimore -- on December 3, seven calendar days days after it was mailed!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-38469315511224319492010-12-02T12:32:11.087-08:002010-12-02T12:32:11.087-08:00Carioca adds:
“We just can’t compete with the US ...Carioca adds:<br /><br />“We just can’t compete with the US Post Office…” I couldn’t believe my ears! First I went to FEDEX, then to UPS and both sent me to USPS…<br /><br />I was back home and was trying to send a small but very important Texas Instruments TI-89 graphing calculator to Spain. A few days earlier, someone had left it in my Budapest hotel room and now needed it for his forthcoming final exams in Barcelona – could I mail it urgently? FEDEX and UPS offered to send the calculator for $80+ but both suggested I try the post office which, they assured me, was bound to have a lower charge...”we just can’t compete with their price !” Sure enough, using the “USPS Supplied Priority Mail ‘if it fits, it ships’ International Small Flat Rate Box (maximum value for contents: $400)” my total cost was $13.45 ! In this global model of cooperation, at least two subsidies – by the US and the European taxpayer – made one low price possible...I'll let you know if the calculator reaches its destination before the intended recipient leaves town!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-53527087301811344972010-11-21T01:27:42.787-08:002010-11-21T01:27:42.787-08:00A bit late to the party here, but had some thought...A bit late to the party here, but had some thoughts...<br /><br />I agree with the poster who saw the virtues of the USPS providing benefits to working class people. While I agree that the business model is in dire shape, that is far from uncommon for a government agency. Ultimately, I view the USPS as another form of stimulus: it provides a cheap, efficient, not-so-relevant service and provides good jobs for many middle and working class Americans. The money it loses is but a tiny fraction of the money spent by the Fed in the name of "liquidity" (which you mentioned), although this liquidity is primarily accessible only to banks and Fortune 500 companies...unless I'm missing something and working class Americans are participating in recent treasury repurchases or issuing low-yielding corporate bonds.<br /><br />I'm biased - my mom spent 35 years as a USPS employee, and has done every job from letter carrier to postmaster and higher levels of upper management. She's a lifetime pensioner and living well in her retirement, but providing those benefits was a sustainable proposition in the 1970s when she joined - a time when technology was worse and the economy was less interconnected. Commerce would've died if you couldn't send letters back then, and the USPS was the cheapest and fastest way to do it. Anecdotally, I hear the fax machine did more damage to the USPS than email, fedex, and UPS combined.<br /><br />At any rate, yes it loses money. But so does the rest of the government. In the meantime, the jobs the USPS provides are essential to the lives of hundreds of thousands of non-upper class Americans, and I wonder what the economic impact of shutting off this "stimulus" would be.<br /><br />Best,<br />JonahJonahnoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-34687806549627307232010-11-09T17:21:39.165-08:002010-11-09T17:21:39.165-08:00Carioca,
Good analysis of the Franking Privilege....Carioca,<br /><br />Good analysis of the Franking Privilege. <br /><br />In the case of the Post Office closure, the powers-that-be have tried to close this particular location since the 1980's!<br /><br />The bugaboo was simple demand. All the boxes were taken and there was a waiting list to get the first available by a significant population of new customers.<br /><br />Rather than do the obvious...RAISE PRICES to sort out the most essential users from the idlers, the Post Office undertook a campaign to reduce service.<br /><br />It was about this time I received a 5.25 floppy (remember those?) with a fairly expensive program on it folded in half to fit my box as one of several examples of pure malignant service.<br /><br />I muddled through, as did most boxholders because the factor of use outweighed the factor of inconvenience.<br /><br />Over time apparently their campaign of attrition worked. There are several private Mailbox services within a half mile of this location and so the number of vacant USPS boxes at this location is over 60%(??)<br /><br />Even more surprising, the next closest location at a nearby shopping mall can absorb the hardy survivors like myself without any difficulty.<br /><br />So apparently the price of victory for USPS is to provide a painless transition from the detested location to the other facility for all the refugees.<br /><br />Too late of course. I have read predictions USPS will be completely shut down within a year if not sooner.<br /><br />And.... I will have to relocate once again.<br /><br />Best,<br />TJKAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-60342537994985962182010-11-08T20:27:08.013-08:002010-11-08T20:27:08.013-08:00Timbauba - thanks for the international perspectiv...Timbauba - thanks for the international perspective... With many credit card companies pushing "Go Paperless" billing, I can only imagine that bill volume is already declining rapidly...<br /><br />David G - if you ever had the chance to drive in my Camry in college you would have been safe knowing that I had deer whistles on my car, provided by my worried grandparents. My biggest retort to the USPS comparison? US Postal workers only work 9am to 5pm, thereby putting them squarely in daylight hours and, by extension, out of the way of most deer...Stevehttps://www.blogger.com/profile/05171714081043183565noreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-44656194669131800592010-11-08T19:42:02.187-08:002010-11-08T19:42:02.187-08:00Steve - an revealing piece on a big $ sinkhole - I...Steve - an revealing piece on a big $ sinkhole - I've got one of my own that I read in Fortune Magazine this morning. DEER COLLISIONS cost this country $4 Billion per year. The reason I bring this up is A) the number $4 billion makes the topics directly comparable and interesting to relate and B) I really want to know how many of the deer collisions involve USPS Trucks...What portion of the $14 billion annual USPS losses go to deer collisions? If all USPS trucks were required to have ultrasonic collision preventers would we be able to kill two budgetary deers with one USPS Truck so to speak?David G.noreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-9522380297789739032010-11-08T11:27:48.616-08:002010-11-08T11:27:48.616-08:00Well, TJK...Can't decide whether to applaud or...Well, TJK...Can't decide whether to applaud or to cry (I guess that's because I'm a Libra). That the post office with your postal box of 35 years is closing could be a sign of progress (related to the cost-cutting our blogger seems to advocate?)or another nudge in the direction of moving from snail to digital. Either way, I'm sorry to learn of your loss...As to Carioca's past history, one is inclined to admire his flexibility and ability to adapt to so much change.<br /><br />And Timbauba: is the Brazilian postal system required to provide free services to hundreds of elected officials? And, if yes, how is this cost reflected on their financial statements? Franking privileges which allow members of congress to send mail through the post office merely in exchange for their signature (i.e., "free") is probably a good idea for many reasons; within the context of Billions it is probably an irrelevant expense component. My problem with it is that this is, apparently, another example of real costs -- small as they may be -- that are neither defined nor properly accounted for...the postal service is required to provide this service, the cost of the service is "absorbed," and decisions are made without full and transparent accounting of either cost or value. <br /><br />For those who may be interested in more details,the Congressional Research Service has prepared "Franking Privilege: historical Development and Options for Change" for "Members and Committees of Congress."<br />http://www.fas.org/sgp/crs/misc/RL34274.pdf<br /><br />Among other points, the study observes that<br />"The franking privilege has carried an element of controversy throughout<br />American history. During the 19th century, the privilege was commonly attacked as<br />financially wasteful and subject to widespread abuse through its use for other than official business." Not to mention the advantage it provides incumbents...<br /><br />Carioca.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-23467633306538677732010-11-08T06:32:55.004-08:002010-11-08T06:32:55.004-08:00I live in Brazil, where bills cannot be paid by se...I live in Brazil, where bills cannot be paid by sending checks through the mail. People either go to banks or state lottery agencies or post offices and pay in cash, or, nowadays, pay by direct debit to their bank account. This is both more efficient and environmentally friendly, as checks, envelopes and stamps were all, once upon a time, trees. Not to mention that the postal service needs far fewer people to sort and distribute and deliver those antique and outmoded pieces of paper.<br />I do not know what percentage of USPS revenue is from bill paying, but I'd guess it's significant, in which case if (when?) people in the US stop paying bills by mail, the revenue stream will decrease even further. <br />To distinguish myself from other anonymous, my code name is Timbauba.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-64976077599957904192010-11-07T20:28:38.675-08:002010-11-07T20:28:38.675-08:00Where do your federal tax dollars go? A great char...Where do your federal tax dollars go? A great chart from the wsj: http://online.wsj.com/article/SB10001424052748704506404575592900454547226.html?mod=djemTEW_hAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-65629660526736091392010-11-07T19:40:50.803-08:002010-11-07T19:40:50.803-08:00What would Ron Burgundy do if he ran the USPS?
Ni...What would Ron Burgundy do if he ran the USPS?<br /><br />Nice comparison, Bob. I think if you dug into quarterly earnings you could get some volume number for FedEx/UPS, but by I think the composition of their volume is very different (more packages, fewer letters) than USPS.Stevehttps://www.blogger.com/profile/05171714081043183565noreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-81623080692286285762010-11-07T18:56:56.134-08:002010-11-07T18:56:56.134-08:00Ok...great great blog entry Steve. After reading I...Ok...great great blog entry Steve. After reading I jumped on both USPS and FedEx sites to try and get an idea for volume related to each company's revenue/expenses to try to see what we're looking at on an average "per unit" basis. After about 10 minutes of searching, I found a great USPS report, but nothing from FedEx. No dice on the volume-related comparison.<br /><br />Interestingly enough, what I did find is that FedEx is reporting salaries and employee benefits at 40.2% of revenue for 3 months ended 8/31/10. While USPS didn't provide this exact statistic, their reported comp & benefits expense as a percent of operating revenue for 3 months ended 6/30/10 ended up being 74.0%....now I know the time periods aren't exact but that's a ridiculous comparison! Speaks to your cost-related comments. Sure, revenues are declining, but the cost structure at USPS needs to flex accordingly, starting with labor it seems.<br /><br />All in all, between reading this entry and finding this article (http://blogs.wsj.com/economics/2010/11/06/number-of-the-week-102-trillion-in-global-borrowing/#) online a few minutes ago, I think I'm going to take a break from reality and watch some more Anchorman on TBS.Bobhttps://www.blogger.com/profile/16742120190999365875noreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-47542618968054153462010-11-07T18:23:28.185-08:002010-11-07T18:23:28.185-08:00One other note re: the Post Office:
After thirty ...One other note re: the Post Office:<br /><br />After thirty five years at the same PO Box Address in a world where some people (I won't say who, but his initials are spelled Carioca) had upwards of two dozen different addresses in both the United States and overseas, my Post Office will close effective January 1,2011.<br /><br />Anyone who thinks they need to write me a letter better hurry up since I do not know how I will fix this.<br /><br />Best,<br />TJKAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-84700929844380389752010-11-07T18:16:06.756-08:002010-11-07T18:16:06.756-08:00Very interesting, TJK. What great ideas those wer...Very interesting, TJK. What great ideas those were... what a shame! Maybe it's time to reintroduce the crass commercialization idea?Stevehttps://www.blogger.com/profile/05171714081043183565noreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-50325818992080513172010-11-07T18:12:19.184-08:002010-11-07T18:12:19.184-08:00BaHAHAHAHAHAHA! The Post Office!
I have actually...BaHAHAHAHAHAHA! The Post Office! <br /><br />I have actually written letters to the editor about the Post Office that date back some 20 years.<br /><br />Re: Pay. The Post Office pays premium Union Scale wages to do the same job Grocery Store Stock Clerks, Cashiers and Bank Tellers do for a fraction of the salary, in some cases for little more than minimum wage.<br /><br />Re: Innovation. Wayback in the wayback it was proposed the Post Office sell full price stamps for half price to the public. ( A 20 cent stamp would retail over the counter for 10 cents) <br /><br />How would they do this? <br /><br />Through advertisement license agreements. <br /><br />For example, McDonalds would pay for the right to print X number of stamps with their logo or brand around or integrated with the Government design. <br /><br />The full cost of operations would be underwritten, the public would be served,all would be well and the Republic would prosper.<br /><br />The idea was defeated because the usual assortment of Communists and Hippies publicly objected to the crass commercialization of a government operation!<br /><br />Re: Innovation, Part The Second. <br /><br />In the late 80's/ early 90's (before the WWW, Itunes, Ipods, Ipads et.al) nothing would have made more sense than to equip Post Offices with Public Terminals where people could type letters to be sent over telephone lines and printed at the destination to be delivered locally. <br /><br />In a government dedicated to "no boondoggle left behind" this was one boondoggle deemed too outrageous to countenance! Go figure!<br /><br />The increase in Productivity, the decrease in cost, the benefit to the entire public was just too much to contemplate.<br /><br />Compuserve actually offered exactly such a service in 1991(?). You could send your letter electronically to a local pod where it would be printed out and mailed (with guaranteed overnight receipt)<br /><br />Before this becomes a diatribe, let me stay on point.<br /><br />The Post Office is one of the few Government entities named in the US Constitution- as good communications are necessary to maintain <br />the strength of the Republic.<br /><br />Section. 8. The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;<br /><br />To establish Post Offices and post Roads;<br /><br />What another fine mess your Civil Servants have made! <br /><br />Over time they have fixed something that was not broken until it was ruined beyond repair!<br /><br />Best,<br />TJKAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-17410572312214712882010-11-07T16:51:01.155-08:002010-11-07T16:51:01.155-08:00"So why do people use UPS or FedEx so often?&..."So why do people use UPS or FedEx so often?"<br /><br />I use it because there have been multiple screw-ups from the USPS, and when there were screw-ups it was impossible to locate and re-deliver my package. This has literally never happened with UPS or FedEx. <br /><br />"Point re: wages."<br /><br />The simple fact is that there is an oversupply of manual labor. More supply = lower prices. Those forces aren't going away in our lifetimes. Billions of people globally have seen their countrymen work harder, longer hours for much less than $11.50 per hour and want in. That continues the cycle of lower wages. No politicians want to talk about this, because the truth is painful and the solutions are politically very challenging. <br /><br />"However to look upon USPS as inefficient government fluff may not be fair."<br /><br />I didn't say we should simply eliminate the post office... but there's no question that it is completely, ridiculously inefficient at this point. <br /><br />"It's nice to know that there are still some working class people out there who get lifetime benefits and can actually collect retirement. It is also a shame that they have to compete with private businesses whose employees get terrible benefits and terrible pay for back breaking jobs."<br /><br />That lifetime retirement is unsustainable. That's the entire point of the post. It is at the expense of taxes paid by people who work their asses off (like you at FedEx and UPS), and that is not fair. Too much has been promised to too many. In an ideal world, everyone would not work and have a wonderful life. <br /><br />"I also wonder who benefits off the corporate profits that Fed Ex and UPS get for poorly treating their employees."<br /><br />Nobody is forcing people to work for FedEx or UPS. My point was never to defend them, or their labor practices. My point was the US Postal Service is dangerously close to failing. As for who benefits from an efficiently run logistics and delivery company? Well, lots of people. The people who want a reliable, fast delivery would be the first and biggest category. And anyone who wants to benefit should open a brokerage account (very easy to do) and buy a few shares of stock.Stevehttps://www.blogger.com/profile/05171714081043183565noreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-13553800406299997162010-11-07T15:34:47.409-08:002010-11-07T15:34:47.409-08:00nice man.. those congressional hearing quotes are ...nice man.. those congressional hearing quotes are straight out of the fountainhead.Dave Kurzhttps://www.blogger.com/profile/18411402384303696266noreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-38012435869723343162010-11-07T14:34:34.933-08:002010-11-07T14:34:34.933-08:00I'm labeling this blog/post, this number forty...I'm labeling this blog/post, this number forty two, as the top blog of the series, I like it. Just don't ask me to label the other ones in any order, I liked them all.tibinoreply@blogger.comtag:blogger.com,1999:blog-4866022460920878229.post-57378053927927655032010-11-07T14:13:55.102-08:002010-11-07T14:13:55.102-08:00What Jayel thinks is;
While there is an obvious d...What Jayel thinks is;<br /><br />While there is an obvious decline in sending letters because of electronic communication, there is also an increase in larger packages due to online shopping.<br /><br />In congruence with this fact USPS has always offered me better shipping prices than Fed Ex or UPS when I send and receive packages. So why do people use UPS or FedEx so often? The only time I use them is when I have no choice. <br /><br />I have actually worked for both FedEx and UPS. At FedEx I made 11.50 an hour for 4 hour shifts loading trucks nonstop (it would have been physically impossible for me to work that hard for 8 hours). At UPS I helped a driver who literally sped from house to house and sprinted to every door for his entire shift. He expected me to do the same for 10 dollars an hour. No wonder their employment costs are so low. I obviously had no trouble getting either job. Once again, the reason for this is very clear. Yet, I bet that the CEO's for both make well over 800,000 dollars.<br /><br />Do I think we should we accept a government agency that isn't self sufficient? No, the USPS obviously needs to make changes so that they can sustain their costs with their profit. However to look upon USPS as inefficient government fluff may not be fair. It's nice to know that there are still some working class people out there who get lifetime benefits and can actually collect retirement. It is also a shame that they have to compete with private businesses whose employees get terrible benefits and terrible pay for back breaking jobs.<br /><br />I also wonder who benefits off the corporate profits that Fed Ex and UPS get for poorly treating their employees.Anonymousnoreply@blogger.com