when is the us postal service going to privatize?

Discussion in 'Politics, Religion, Social Issues' started by 63dot, Feb 15, 2007.

  1. 63dot macrumors 603

    63dot

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    #1
    ...and will there be an ipo?

    when i went to the post office today, i saw a stamp that had a copyrighted product featured (something akin to let's say a ford thunderbird or an apple iMac)

    so i asked the postal worker if that was legal for a government agency to do that since only companies exchange blatant adversiting like that...big companies that are private

    she said the us postal service is in the process of doing that

    ...i do remember rumors to that effect way back in the 80s when i was a stamp collector and the idea seemed very exciting...hmm, maybe more stamps or variety of stamps??

    but now that i am older and look to things like this as possible investement ideas or things to add to a retirement portfolio, it looks like an intriguing idea/investment if they go ipo
     
  2. applemacdude macrumors 68040

    applemacdude

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    #2
    when is it gonna ipo?

    never. its a government corporation in business for the good of the people and the nation. even tho its been costing the gov money $ 12+ billion that it has borrowed from the gov.
     
  3. iMeowbot macrumors G3

    iMeowbot

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    #3
    USPS is kind of in a weird state. It's not a government agency and hasn't been since its name was changed to USPS. It's a separate corporation that's wholly owned by the US government. Because of the ownership, Congress can still dictate how it operates.

    One of those orders is that USPS has to pay its own way, no tax funding. That's where the stamps etc. with sponsorship deals come from, the hope is that collectors will snap them up and they won't be used as actual postage.
     
  4. 63dot thread starter macrumors 603

    63dot

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    #4
    thanks for the info...that makes sense

    i just wonder if the corporation that is the usps will allow us to get some ownership...as in stocks...he he...and make us filthy rich :)

    i will take a contracts class this spring (the state government is sending me through law school) and hopefully i will get more info on how a government agency, non agency (or whatever) can get away with sponsorship
     
  5. applemacdude macrumors 68040

    applemacdude

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    #5


    you wouldnt get a dime. the USPS had a negative 1.5 billion net profit last year
     
  6. pseudobrit macrumors 68040

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    #6
    USPS would die if it were privatised. It will never happen.
     
  7. 63dot thread starter macrumors 603

    63dot

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    #7
    vee can't let greedy right vingers put their capitalistic monies into the usps, comrade...vee should shoot anybody who strays from the shining path :)
     
  8. Ugg macrumors 68000

    Ugg

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    #8
    Well, maybe. First off, postage rates would skyrocket. Second, USPS has special contracts with the airlines that no other freight handler can obtain, that specifically state that the mail goes first. Before your luggage. There's any number of other issues that would eliminate the USPS as it now exists.

    However, TNT has privitized and Deutsche Post is mostly private and mail service hasn't totally failed in the Netherlands and Germany. The US is a different beast altogether, having a lot more territory to cover and a lot of rural areas that would definitely suffer if USPS were privatized.

    It's a bad idea and should never happen. ALthough, I wouldn't be surprised if bushco were pushing for it to happen.
     
  9. Sdashiki macrumors 68040

    Sdashiki

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    #9
    link?
     
  10. 63dot thread starter macrumors 603

    63dot

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    #10
    i don't really know if privatizing the usps is really a bush idea or right wing idea

    i am a hard core democrat who despises bush but for the past few years i have heard about a struggling post office from the workers and the media

    and i think it's definitely possible that fed ex, ups, mail marts, and others have cut into the usps business somewhat, perhaps a lot

    i know it's not a popular idea, but maybe we should pay a little more for postal rates but i know this would not be great for large businesses especially
     
  11. Ugg macrumors 68000

    Ugg

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    #11
     
  12. Sdashiki macrumors 68040

    Sdashiki

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    #12
    USPS priority flat rate boxes.

    the bane of any eBay Power Seller.

    Why?

    because alot of items fit within the $8.10 flat rate box, and yet sellers charge, say, $20 for shipping.

    call them out on the overcharge, point them to the flat rate box, offer $10 to cover their costs, and watch them yell and squirm about costs this and that.

    as long as its not a HUGE or oddly shaped item, flat rate boxes kick some serious ass. $8 for anywhere in the US within 3-5 days. BAM!
     
  13. it5five macrumors 65816

    it5five

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    #13
    As an employee of the USPS, I can tell you that we have heard nothing about this, and this will probably NEVER happen.

    For starters, the union would never let it happen. My particular job, typing at a computer so the bar codes get put on your mail, used to be contracted out to a private organization. The union fought for it to be brought back to the USPS so federal/union workers could do the job again. I'd imagine they'd put up one hell of a fight if the entire USPS was privatized.

    Secondly, there are an amazing amount of laws that govern the way the USPS runs. If we were to privatize, those laws wouldn't mean a thing, and the USPS would basically lose it's entire structure holding it together.

    EDIT: And agree with the above. Flate rate boxes are the greatest thing ever.
     
  14. 63dot thread starter macrumors 603

    63dot

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    #14
    i am definitely pro union and don't like to let them lose any control, especially these days

    the best option would be for usps to be financially sound, now and in the future, without raising the postal rates, and also to have the postal workers get the best pay possible

    i don't know if the 1.5 bllion dollar loss posted earlier is accurate, but if it were, it would not surprise me

    certainly, i would most likely be against almost anything i can imagine this president doing to help (and thus for my comments and others likely to come here, i started this post in the political forums :) )
     
  15. Ugg macrumors 68000

    Ugg

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    #15
    1.5 billion is a drop in the bucket. It works out to a subsidy of $5 per American. As long as USPS continues to provide a service to all Americans, then it's well worth it. If the USPS were privatized, not only would rates skyrocket, the benefits (stock price increases and dividends) would go to the wealthy, not those who actually need the service.
     
  16. pseudobrit macrumors 68040

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    #16
    Like presort standard. Bulk mail and periodicals are a substantial part of the USPS business. Not to mention the USPS has a statutory monopoly on non-critical periodicals, flats and letter mail.

    That would disappear if they went private, opening them to competition and market forces (especially local-to-local mail markets, where they turn a huge profit), and they would die.

    And you'd no longer have access to a socialised mail system. So if you want to send a birthday card to your aunt in Alaska, prepare to pay UPS/FedEx rates. And if you live too far outside of town, you can forget about getting service at all.
     
  17. 63dot thread starter macrumors 603

    63dot

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    #17
    so let's say the postal service is doing fine and 1.5 billion or so is not so bad, could we say that government control of health care would work, and thus give us lower rates of health care? (i know that is another thread, of course)

    i am not saying government is more or less efficient, or more or less greedy, or anything, it just seems to me that something may need to change EVEN if there are small 1.5 billion losses

    anyway, it can't go on losing money forever

    also, how much do you think things would skyrocket if the usps became a publicly traded corporation as opposed to a government owned corporation like it is now? (as described in post #3)
     
  18. Ugg macrumors 68000

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    #18
    In order to make a profit, business would have to increase rates substantially and as pb said, cut service to the bone. No more Saturday delivery, staffing at post offices would plummet, no more passport services at the post office or if there would be, the cost would go sky high. Stamps would double in cost.

    Who says it's losing money? Should every government provided service turn a profit? Are you willing to see all schools privatized, all roads become toll roads? The police? The Military? What's an essential government service if everything is privatized?

    There's no need for USPS to break even or turn a profit, there IS a need for the services the USPS provides. At $5 a year, to me it's worth it.
     
  19. EricNau Moderator emeritus

    EricNau

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    #19
    I personally think we have too many stamps as it is.

    If it were up to me, we'd have one design for each stamp denomination and stick with it. Excluding re-designs, you don't see completely different sets of American money do you? Why should stamps be any different?
     
  20. Rodimus Prime macrumors G4

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    #20
    one of the biggest reasons the government run stuff is cheaper is they have a lot less overhead. I believe heath insurance company have a 25% overhead cost while medicare (government) has a 2% overhead cost.

    The USPS overhead cost is a lot less than Fedex, DHL, UPS ect. all the upper CEOs are not there and all those higher ups you do not have to pay because well they do not existed since it is the government that covers those spots. It is something a privatise could never get as low.
    Now I think the government is often more inefficient over all in those areas but the lack of the overhead makes up for most of it.


    I think the USPS should remained run by the government. Also I think one of the larger down falls that hurt the USPS is emails. Less letter are being delivered since junk mail has been reduced. People send fewer letters to each other since it moved over to email. Companies now do not have to side stuff though regular mail to people if an email is all that is needed for it.

    Hell I think it cost the USPS about the same amount of money per day to deliver me 5-10 peice of mail as it would to deliever me 1 think in a day. Now which day do they make more money off delievering things to my house.
     
  21. 63dot thread starter macrumors 603

    63dot

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    #21
    an 80 cent stamp would not make most very happy

    i don't know if the post office needs to "turn a profit", per se

    privatized schools may cause an education caste system...all roads becoming toll roads wouldn't fly, and police and military being privatized would be great for a would be fascist leader

    some things i am very strong on for federal and/or state government control...the cal state university system used to be free and when i went to a cal state campus, way back before i am willing to admit, it was only $750 dollars for unlimited classes, room, and three meals a day...for the whole year

    before that, it was completely free, except for the price of textbooks
     
  22. pseudobrit macrumors 68040

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    #23
    The USPS is not a government owned corporation. Plus, it's established in the Constitution.

    This is stupid to even talk about. It's on par with privatising the Federal Courts, IRS, INS, U.S. Mint or the U.S. Army. It's never going to happen unless we slip into capitalist anarchy.
     
  23. 63dot thread starter macrumors 603

    63dot

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    #24

    with w, i think he would like to have our whole country slip into a capitalist anarchy, at least as long as it suits him (and i will be glad when he leaves office)

    the post office, upon further research and many hours of talking about this thread and looking on the internet, is neither a government department or agency, like we have discovered, yet it's not "technically" a corporation either, by definition of that term

    actually, it's completely unique in what it is

    http://en.wikipedia.org/wiki/Usps , as one of many links
     
  24. 63dot thread starter macrumors 603

    63dot

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    #25
    anyway, great thread guys and gals

    maybe, just guessing here like i have been since i entertained the idea of buying in on the organization, if that eventually becomes possible, is that why can't there be tax funding?

    would that be so bad?

    and being a government employee, now state of california, but formerly with two federal departments/agencies, if the usps is not working as i often hear on abc news talk radio (and that may be talk), could it work as a formal government agency, allowed to receive tax monies, if it does not become a publicly traded corporation?

    and i wonder if there would be such dissent on the idea of a publicly traded company if we had a democrat in the white house?

    when clinton was president (i voted for him and would again and again), people were not so opposed to things being made in china, but with bush there, people blame a lot of outsourcing on him and his greedy cronies...SO WOULD PRIVITIZING THE USPS BE A GOP TRICK?

    i know, many questions :)
     

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