Post Office floats idea of cutting mail delivery to five days

Channel: Fox Business
Published: 5 hours ago

Description
Wall Street Journal editorial page writer Jillian Melchior discusses how the head of the U.S. Postal Service floated a new proposal, which would cut mail delivery to five days a week, in an attempt to save money. FOX Business Network (FBN) is a financial news channel delivering real-time inform...



Transcript
Hoping to save billions of dollars, us postal service outlining a controversial proposal to limit mail delivery to just five days a week. Congress is making it clear that that idea won't get very far. So what happens next here now is jillian meltzer from the wall street journal. I mean this is the problem that never goes away they're talking about how to try and save some money here. The biggest p ...
oblem, though, and they're talking about going to five days a week and congress is like no, we couldn't possibly do that forget about it, but the big problem, of course, is all the unfunded liabilities. They have made a deal you've written about this before not tolay folks off and to put in pay raises a lot of unions at work there. How much does that account for in their balance sheet yeah? Well, i think it's a complete mess. What we have going on here is the typical system - that's not responding to the market. I mean they have a postal mail volume dropping by like thirty one percent since 2007, but they're not allowed to respond to that by cutting back because in the law they have to be out there delivering the mail. In addition to that, you've got nine separate unions. They can negotiate really aggressively because they know that, no matter what the postal service, unlike private business, isn't going togo out of business. So i think this is just a complete disaster of a financial situation, but unfortunately this is what it looks like when you have the government backing in or enterprise.

So they have the tremendous cost of all these promises to employees that they can't fulfill, because they don't have the volume to do that. Meanwhile, they do have a core business and it's not delivering those letters that is you know, could be very profitable and doing well. The president, all the time, is swinging at amazon saying you know: amazon is taking advantage of the postal service and they have private contracts with them. We don't even know what deal amazon has made. Becausethe post office doesn't have to reveal it, but what strikes me is that if this was a normal company, they would go into bankruptcy and they would sell off the part of the assets that made sense. That were worth something, and even if you look at the president announced today that they've hired mckinsey to come in and look at the student debt portfolio and say what should we do with this? Can we resell this debt elsewhere? You know how do we deal with this thing? That'S a huge loss and your opinion i mean, couldn't they do the same kind of thing with the post office talk about? How do we divide this up deal withthe part of the business? That'S good yeah! I think that's a great idea, but unfortunately there are a lot of special interests from unions to big online delivery companies to people in rural areas that have a lot of interest in keeping the status quo of a dysfunctional postal service. And i do think the big takeaway here is on the left, we're hearing from presidential candidates a lot about how the answer to problems is to get government more involved right. Well, we've we've all shown up at the post office and seen how dysfunctional it is how inefficient it is, and i think this is a case in point about why that doesn't work yeah julian meltzerthank, you thank you inside today.


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