I received a great response from one our readers who read my article in reference to all the government regulations that are imposed on us as businesses and really how inept the government is at any program they have ever implemented and managed, even if it is 200 years old. Here is what he sent:
Perhaps you can help me figure this out. I pay about 4 cents per ounce for a banana. That banana was produced on another Continent, shipped to a port, shipped across the ocean, shipped from an American port to a warehouse, shipped to a store, and sold to me for a profit.
Every shipper involved probably made a profit, even though they paid taxes and fees to several governments. The packagers and the retail store probably made a profit…….Why does the United States Government Post Office lose money when they charge 49 cents to mail a one ounce thin envelope within the United States?
Of course we both know the answer!
Then in Harry Dent’s weekly review this just happened to show up:
“U.S. Postal Service Narrows Third-Quarter Loss from $1.96 billion to $586 million… The Service made significant gains in shipping while lower pension and health care costs also added to the bottom line.”
What it means – It’s fabulous that the Service cut its losses, but it is still a loss, and a half-billion dollar loss at that. $300 million of the red ink comes from pension and retiree health care benefits. The Service has tried for years to negotiate lower benefits, but to no avail. The unions won’t give an inch. Who could blame them? They calculate that the U.S. government will make whole any unpaid benefits. Given the experience of the United Auto Workers, the Postal Service unions are probably right.
An interesting tidbit: the Service makes a good chunk of cash delivering packages for Amazon on Sundays.
Not much more comment is needed by me, but at least now I know why I have seen postal workers delivering on Sundays. I thought that was weird at first, but good for them.