Philk

One of my mates from uni is now blogs about HR and business and ecomomics

His latest post doesn't paint a rosy picture of times ahead with the latest report from the IFS
We shouldn’t lose our sense of shock and awe with some of these numbers, they are all of them pretty much historically unprecedented and particularly some of these spending cuts look very, very hard to deliver. If they are delivered, not only will they result in extraordinary levels of cuts across public services, they’ll also change very dramatically the shape of the state that is delivering them.

http://flipchartfairytales.wordpress...shock-and-awe/

though is the outlook that much better over here ?

Pulaski

I think the outlook here is almost exactly the same.

Just this week the USPS announced it is losing more than $1bn a month, which is going to change much when it cuts Saturday service. Much more radical restructuring is required to salvage anything from a service that is very rapidly becoming irrelevant.

Middlemore

I'm curious - how is USPS service irrelevant when so much trade is done via the internet. I mean, how could ebay and amazon function without it?

Lion in Winter

Private package delivery services.

Pulaski

Mrs P and I buy lots of things from the internet, but I can't recall the last time a purchase was shipped using USPS. FedEx and UPS on the other hand are cheaper to the user, and turning huge profits. I recently wanted to return something I bought on-line, USPS wanted $12 to send it back, UPS would take it for $7.50.

Englishtart

This is a little off topic, but....
We recently sent a heavy chess set to my nephew in the UK through USPS, it cost us over $120 in postage, but it had sentimental value to him as well as us. To cut a (very) long story short, he got a message from the postal service in the UK telling him he had to collect the package and pay import taxes on the contents!! the chess set was over 15 yrs old! We even wrote to the postal service explaining the value and age of the chess set, we went back and forth over a 2 month period, about 3 weeks ago we got an email from our private mail box company to tell us we had a package for pickup...the UK mail had returned the chess set to us, no explanation, apology or anything!! We were told if we had sent it through fedex or ups there would have been no issue!!

robin1234

What about books though? I recently ordered two used books, from two different bookstores using abebooks.com. Both came via USPS, they have a very preferential media rate.. I'm not sure if FedEx, UPS etc. compete when it comes to books and other similar media..

Michael

USPS does the final delivery for companies such as FedEx SmartPost as well as deliveries for other companies in some rural areas. If USPS goes under, the cost of shipping will likely rise especially in rural areas.

Also an individual can't beat the price of small packages using USPS fixed rate shipping. If the label is printed online, their smallest box is less than $5 for 2-3 day delivery and you get a free box as well as a tracking number. If done through UPS, the cost is at least double that amount for 2-3 day delivery and you have to pay for the box (about another $2).

Pulaski

Maybe that is one of the reasons why the USPS is losing $1bn a month!

Pulaski

Good point, when I order used books, they usually do come out through USPS. Though why USPS cares what is inside a box, and charges different rates accordingly, has always been a mystery to me.

Sally Redux

Isn't something to with having to pay pensions upfront?

They really ought to look at their customer service though. The staff are generally vile and everything takes an eternity at the counter.

Lion in Winter

You may well be right. I wasn't advocating for the disappearance of a government run postal service, I was just pointing out that there are alternative services.

Pulaski

Well the USPS has to fund its pension liabilities, unlike the Federal government which has "borrowed" the SS trust fund making payment of future social security dependent on future contributions and the ability of the Federal government to create a budget surplus ( ) or borrow even more money.

Michael

The problem in Europe is primarily government pensions. The problem in the US is primarily government health care costs.

If the US can somehow get it's health care costs down to similar to the cost per gdp in European countries, most of the problems will be solved. If Americans will accept the fact that the government shouldn't spend a fortune on end of life useless treatments (most European counties spend much less when a person is considered terminal), about 25% of the health care costs could be eliminated which should make the system solvent for many years to come.

Europe on the other hand can only reduce their government pension costs by reducing benefits.

Giantaxe

Just like any other employer... they are also drowning funding retiree healthcare benefits, which is just another example of how healthcare costs are adversely affecting this country.