Why Buying a lot of Stamps Won’t Save the USPS

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Why Buying a lot of Stamps Won’t Save the USPS

“Buy stamps!” “Send mail!” “Save the postoffice!” scream a glut of colorful, well-designed Instagram articles. Over up up on Twitter, lots of people urge their supporters to #BUYSTAMPSNOW.

Make no blunder: to save lots of the oldest service that is public the U.S., social networking actually, would like us.

It’s a concern that is valid. In June, Louis DeJoy, a significant donor to President Donald Trump and multi-millionaire, assumed the positioning of Postmaster General. Very nearly straight away, DeJoy revealed their want to alleviate the mounting financial obligation weighing along the united states of america Postal Service (USPS), including eliminating overtime pay and getting rid of mail sorting devices, which ignited issues about how exactly a fractured mail solution could interfere aided by the future presidential election.

Nevertheless, a mass stamp-buying campaign is not likely to salvage that solution. At the very least maybe perhaps maybe not in its present kind.

The USPS is approximately $160 billion with debt — and “first-class postage sales aren’t the nagging issue,” says James O’Rourke, a professor of administration during the University of Notre Dame’s Mendoza School of company.

What’s actually draining the post office, he claims, is just a little-known, 14-year-old legislation that’s been bleeding the agency dry considering that the Bush management.

The Postal Accountability and Enhancement Act, because it’s called, is just a 2006 bill that will require the postoffice to funnel $6.5 billion per year into retiree medical advantages — ensuring, basically, that the price of healthcare for retired postal employees is pre-funded for the following 75 years.

The mandate had been unprecedented. All agencies that are federal state-owned enterprises (like Amtrak or Freddie Mac) have to pre-fund their retirement benefits and so the expenses are accounted for inside their annual spending plan. […]