Thursday, July 23, 2009

Something's Gotta Give.


As we fall deeper and deeper into debt, things are going to change. The old business strategy of "expand, expand, expand" may turn into one of, "lets just make sure our long term debt = 0."

Considering a future America that must change and become more efficient, I wonder about the USPS. Yes, the postal service, the monopoly, third largest employer of people in the country (700,000+ employees) and single largest vehicle owner. Productivity has increased at USPS over the last eight years, but their long term debt is over 6 billion dollars. Eventually they are going to have to make a move and hopefully not become the next GM.......could they sell all mailing rights to UPS and FedEx for 10 billion and fulfill all their long term debt obligations (like 7.5 billion in pension)?

Either way, somethings gotta give, employee pensions or postal services (or both)......by the way don't expect mail on Saturdays anymore. And if you live off the road 100 miles, shouldn't you have to pay more for someone to spend the time to deliver you something than the guy who lives in the city?
There are better solutions than shuttering the joint that is the USPS, their website still gets over one hundred million hits a year......

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