Posts Tagged ‘mail’

English: Canada Post LLV in service

From the August 17, 2012 Toronto Star article, Canada Post changing how it delivers mail:

“The amount of mail in the system is declining, so we need better and more efficient ways of delivering the mail,” said Canada Post spokesman Jon Hamilton, emphasizing once the new method is implemented across Canada it should result in annual savings of $250 million.

The new model won’t adopt the U.S. Postal Service’s style where delivery vans often pull up to mailboxes at the curb where carriers don’t get out of their vehicles.

Hamilton said this new system will help reduce labour costs, which account for 71 per cent of Canada Post’s budget, because by changing starting time, letter carriers will be able to mail pickups at the end of their shifts.

Previously, I wrote the article, Canada Post as a model for saving the U.S. Postal Service, wherein I documented Canada Post’s 16-year consecutive profit, showing that government services are capable of being competitive, despite the constant rhetoric of well-funded government-regulated and government-sanctioned entities like the Mises Institute.

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English: Canada Post LLV in service

In her January 9, 2012 Truthout article, Saving the Post Office: The Models of Kiwibank and Japan Post, Ellen Brown argues why the New Zealand and Japanese postal services are a model for saving the U.S. Postal Service.

She highlights them because they have public banking operations.

She states:

The USPS is a profitable, self-funded venture that is not supported by the taxpayers.

I don’t know where she got the claim that they are profitable, since CNNMoney reported in February 2011:

[I]t suffered a loss of $329 million in the first quarter of federal fiscal year 2011. That compared with a loss of $297 million a year earlier.

If you think a $329 million loss in a single quarter is bad, consider what happened in the third quarter:

The U.S. Postal Service posted a net loss of $3.1 billion in its third quarter and warned again it would default on payments to the federal government if Congress did not step in.

She criticizes Stephen Zarlenga’s American Monetary Act as being too radical of a change.

On the same basis, I propose a very simple model for saving the U.S. Postal Service, and that is Canada Post.

It’s been profitable for the past 16 years, it reported its most profitable year in 2010 despite the ongoing financial crisis, and boasts the third-lowest postage rates among developed countries, despite Canada’s exceptionally low population density.

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