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All services -- -- fix it Janelle besides your mail it's delivering red ink the agency is losing 25 million dollars today.
A new study is proposing a partnership a partnership between the private sector and the public.
To create what they call -- hybrid Postal Service with more on this Robert Atkinson president of the think tank information technology and innovation foundation who came out what the study.
Robert thanks for coming on the show tell us why -- -- -- -- Is a good one why would it work.
Well look it's not working what we're doing now is not work they have -- hard I was.
Losing 45 million today.
Thirty billion dollars over the last three years.
Postal Service is in real trouble because people are moving away from mail.
First class males -- climbed about 37%.
Over the last decade and so we've got to have a new model -- in one thing the Postal Service does really well this deliver the mail.
But we -- the cup we have the forces of competition in the innovation of the private sector.
Are able -- from Robert do.
So mail delivering it to eat they -- exactly where I was going next sorry for interrupting you when you're idea is really all about that last mile right.
-- you would leave after the USPS to do and then the rest of the job will be done by the private sector.
How did you get those two groups to work together.
Well the way we would do it right now actually the Postal Service delivers.
Perhaps around 20% of FedEx packages -- dates of this charge that exit -- and it's cheaper for FedEx to have.
Postal carriers deliver the FedEx package.
That would be the model for the entire mail system where private carriers if it works for them to get into the marketplace they could just pay.
The Postal Service to deliver the -- the last mile if you will.
Makes a lot of sense of course there's a downside script for people who work at the USPS.
It would eliminate 40% of the workforce and close half of post offices -- being down -- Is this actually what's called for in this case I mean if you're in the private sector and you lose a lot of money you don't get bigger you get smaller.
Well you know it is going to be harder on postal workers -- I don't see any solution other than bankruptcy.
When you when your your party at the fifteen billion dollar federal debt limit and you're losing billions of dollars a year in first class -- declining.
We really have no other choice but a brand new model.
Well and -- with what you pointed out about everybody communicating online these days.
But let me pitch into the heart of one of the postal service's biggest problems.
And that's -- pensions and their obligations to retirees what -- your plan do to fix that.
Some defenders of the of USPS will argue is that they have that that -- on an unfair disadvantage that the pre pay their pension obligations.
Prepared for health care.
That is not what the GAO the Government Accountability Office has found they actually argue that.
The postal service's net liabilities.
In the future without these payments would actually be quite large so.
Proposals are you gonna have to downsize its gonna have to figure out a way to pay some of those.
But it's not sustainable as it's going on.
Sure -- -- I have to tell you it's astonishing to me.
The congress lets this go on and on an -- they're not even scaling back Saturday delivery at this point.
How Lorena get congress to go along with this because let's face said this is really a patronage program at this point.
Congress keeps -- in business because it pays them to keep it in business they get reelected in part because they keep the Postal Service got.
Well they can't close -- very difficult to close post offices we have too many of those it's hard to close -- processing centers.
But what it'll end up forcing the hand of congress' simply win that Postal Service has to go to congress and says you have to bail us out.
Because we can't -- -- workers.
We can't pay our our our contractors.
That they will happen and -- when that happens I think you'll see pressure for more serious reform like we've offered.
Well it's an interesting plan wolf follow it and see if it gets anywhere thanks Robert for coming on talking to us about it.
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