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New calls to privatize US Postal Service to reduce costs

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    USPS stamping out Saturday deliveries

  • Duration 7:46
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This transcript is automatically generated

Our cash and -- -- this week Wayne Rogers Jonathan Hoenig Tracy Byrnes and Gerri Willis also joining us.

The question -- welcome everybody.

And first the Postal Service raises the price of stamps -- now deep six -- Saturday mail delivery as costly union contracts and declining demand.

Are bearing the service in -- But before we hear what our guests think let's hear what -- What do you think about the post office killings Saturday delivered show sometimes I checked the mail Saturday sometimes I don't saves me chip from getting out of bed early Saturday morning a sure thing is -- affect me a lot.

Because I don't get a lot of mail anymore.

I get most of my videos on line.

I think it's a shame that the post office has to do that as a method of saving money tells me that something is inefficient way they operate.

Well that's exactly why Jonathan says return this plan to sender and privatize the post office instead by Jonathan -- say.

I can't -- terribly pick -- One big the constitution says that congress can establish a Postal Service he didn't think it has to own or run or monopolize it in fact is you point -- they're losing billions and billions of dollars year year to year that's because it's run for political purposes not economic purposes if you private.

Tied the post office it's a hundred billion dollars come in and -- also.

To the government he doesn't -- much -- outcomes not unlike when stock commissions -- airfares were deregulated in the seventies.

Or even in the postal services that have already been privatized in space it's in France in Germany and Denmark worldwide -- does anything work better when the government gets their hands on it.

-- -- Not that I know very you know -- -- to Jonathan's point where we have privatize certain amounts I mean.

If -- sixty years ago seven years ago there was no you know FedEx that we didn't there was no DHL -- -- none of those -- mail services.

-- it in fact it shows that the private sector can do it better.

We did delivers on time it works.

All of those all of those private companies worked very well we ought to privatize them but the post office is soon as possible and get rid of all of this.

Our Chris can you say keep the Postal Service even though we go from a five billion to a seven billion to wait.

Twelve billion dollar loss that's on taxpayer on the -- work for all that might be say keep it anyway.

Wolf first of all why in the world are we trying to -- -- the post office like it's a business it is a constitutionally.

-- -- function it's a desired function and it has a universal service requirement.

That no other private sector delivery.

Company has nor could provide at the cost that the Postal Service does it to treat -- like a business is to completely not recognize what it is.

And also none of you have mentioned.

That the reason the post office is swimming in red -- Is because it has -- cons a content congressionally mandated requirement to pre fund health benefits up to seven or five years all right so -- no other company has -- Just tell you one of the reasons traced him to go to you about that one of the reasons are swimming in reading because they spent 51 point five.

Billion dollars on salary and benefits for current workers that comes to about 82000 dollars per.

But doesn't that make it a business Chris and I Levy and I don't get that I mean it has financial statements and then help them work there'll -- Dare not go.

They're not not seeing dollars ten dollars out I mean this is economics and accounting one O one we have to look at it as it it was a business.

It's a -- business unfortunately.

I get -- -- saying.

Did a lot of people out there that are gonna suffer if the post office goes down but at the same time the post office is suffering -- the world has changed nobody is his first class Myanmar.

Heck I think birthday wishes via email lots of people do Wal-Mart suffering to -- -- gonna do.

Let me get -- -- -- hey this isn't ad business is as a political patronage system.

The Postal Service has as many workers very nearly as Wal-Mart it's the nation's number two employer we cannot afford this.

The business model if there is one doesn't work private companies appealed off all the profitable businesses there this company.

The Postal Service is swimming in -- -- -- of the postmaster general Patrick Donahoe.

5121000.

Dollars he makes more than the president of the United States.

-- you know he's one guy let's talk about the 400000 postal workers the largest employer of veterans by the way a large employer of minorities in these are middle class jobs not 500000.

Dollar a year jobs and and the waitress is going.

That's -- I -- nothing I think it's not a whole lot guys it's 82000 dollars -- to take their -- divided by the 629000.

Employees.

It's 82000 dollars Jonathan.

What about you it's let's talk about the the national unions yet.

Yeah I mean Erica 80% of their yearly expenditures go to -- union job benefits I mean their tremendously inefficient and of course there is a back.

-- the pensions are backstop.

There's subsidized by the taxpayer and you would literally be cheaper to step by everyone who you know a computer and not PO box -- -- -- -- somewhere.

I think there's been no innovation of course because this monopolized by government I'm telling if you privatize the post office you don't much better outcome you'd have.

New innovations I mean there's a reason why Apple's product productivity and an excellence has gone up when the post office has gone downhill.

Yeah it directly to -- enough but let me a Winger Wayne what's just say let's play -- you're Smart guy your numbers guy.

If it if it was a free market only influence business what would the cost be descended a letter from New York to say San Francisco.

I I can't do that calculation that -- -- but I gotta say this just an answer to what Christian is saying is why shouldn't it be run by business genocide while it's not business it's what why not why shouldn't it be your taking the position that it's.

That is mandated that the it shouldn't -- I say it should be why not make it that so that the taxpayer.

Quite right.

Does that the public have to coerce me to take money out of my pocket and -- -- to some postal -- because you think that's a good idea what it's not a good idea it's not like I'm and I go right.

Innocent and let me answer that.

Answer the question -- it it's about providing universal service -- know -- private company does that answer your question Eric we already see by UPS ground and by FedEx if you were to send the same.

First class letter that now cost you when the forty cents range it's gonna cost you more than ten times that much but descended like you look at how I don't know.

-- -- -- As the private sector in you have competition coming and that's how things work in the price of -- one little letter will come down.

If you get it all in right now it's like a little bit here and then they have the right to charge a premium.

You get -- all advertising let's it will work out that I.

Let's -- -- and what's more it.

Even the USPS is losing its first class mail business it's -- 25% get bit it's not just the employees at the infrastructure there too many post offices.

When the Postal Service started 1788 they had one post office for every 101000 Americans and they they have -- One for every I'd say they have one for every 101000 now they had one for every 53000 when they started we had too many buildings too many people it's still expect.

Saying our guy John -- Jonathan along.

The way this works the post office when it runs a deficit like you did the last three years in a row they go to US Treasury Department say we need money they post the letter of credit.

And the the treasury hands them money here's the problem what happens if the post office defaults what happens if it falls Jonathan who's on the hook for that money.

The -- -- as taxpayers on the hook for all of it -- I mean.

This is not this notion of privatization it's not fill out there even Peter -- is not formerly of the president's come -- has endorsed publicly privatizing the post office in.

In this notion of needing to require.

But -- to provide universal service -- got Gmail provides universal service for free.

The post office does it to the tune of billions and billions of dollars that Eric your point taxpayers stand behind our -- leave -- there are great discussion guys.

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