Privatize the Postal Service? That’s Just Going to Make a Small Number of People Rich

From AlterNet by David Morris –

VLTP has been fighting against privatization of the USPS by ALEC and others.  This taking over of the Postal Service by corporate interests has been ongoing for more than a decade now and recently the former Director of the OMB, Peter Orszag has written articles in support of privatizing the USPS.  Orszag is currently vice chairman of corporate and investment banking at Citigroup.
Much of Today’s problems with the USPS are a direct result of actions taken by Congress back in 2006, that forced the USPS to prefund retirement benefits of workers.   Under the Postal Accountability and Enhancement Act of 2006 the USPS was forced to prefund future health care benefit payments to retirees for the next 75 years in ten years, something no other government agency or private corporation is required to do.  Congressional members with ties to ALEC were responsible for pushing this “Act” upon the USPS and getting it passed.  This legislation turned what should have been considerable profits into significant losses.  Indeed, 90 percent or more of the current deficit is a result of these artificially created debts.
When the 2006 Act was passed there were immediate increases in the price of stocks for both FedEx and UPS – both members of ALEC – and as we’ve written before, both seek access to the first class mail and parcel post contracts held by the USPS.
Read the full AlterNet article here