Apr 13, 2020

Trump Going Postal Over USPS


    A message similar to the one below from Bloomberg has been circulating on Facebook and elsewhere this week, and I think it needs an even wider circulation. There is a Trump battle against Amazon, and his displeasure (now there is an understatement!) can be tied to his hatred for The Washington Post, both owned by Jeff Bezos. 
     Trump claims there is a special deal between Amazon and the Postal Service, and he seems to want to want the Post Office to go out of business. But the real reason they are in deep financial trouble includes this:

Then there is the Postal Accountability and Enhancement Act of 2006 (PAEA), which some have taken to calling "the most insane law" ever passed by Congress. The law requires the Postal Service, which receives no taxpayer subsidies, to prefund its retirees' health benefits up to the year 2056. This is a $5 billion per year cost; it is a requirement that no other entity, private or public, has to make. If that doesn't meet the definition of insanity, I don't know what does. Without this obligation, the Post Office actually turns a profit. Some have called this a "manufactured crisis." It's also significant that lots of companies benefit from a burden that makes the USPS less competitive; these same companies might also would benefit from full USPS privatization, a goal that has been pushed by several conservative think tanks for years.


    Here's a thought: If pre-funding the USPS retirement plan for all of those years is a good idea, let's do the same for the Trump business empire.

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