Yesterday Republican Representative, Marjorie Taylor Green posted this note on X (because this is how Democracy works now) indicating that we should Privatize the post office or abolish it or whatever nonsense... Here's what's at stake.
Yes, the USPS did lose $9.5Bn in 2024 but they delivered 112Bn letters AND 7.1Bn packages, which is more than UPS (5.7Bn) or FedEx (2.1Bn) and, unlike UPS and FDX, the US Postal Service is required to deliver to every citizen in America, without a surcharge - no matter how remote the location.
So, if instead of foaming at the mouth about the USPS losing $9.5Bn, Ms. Green were to vote for a 0.10 increase in stamp fees, then the USPS would make net $1.7Bn instead of losing $9.5Bn. In fact, $7.7Bn of the USPS's losses are also due to Ms. Green and her colleagues, who uniquely require the USPS to PRE-FUND retirement accounts for their 650,000 workers (the US's largest employer of Veterans), which places a ridiculous burden on the USPS.
It also makes them ripe for looting with their $300Bn ($461,538 per employee) Pension Fund just sitting there, waiting to be taken over if the Republicans can break up or privatize the Post Office so be prepared to hear non-stop negatives from Fox and the GOP - aiming to get the people on-board with getting rid of one of America's most crucial institutions in order to line their pockets.
Not only is the USPS about 66% cheaper than UPS or FedEx but both of those services and Amazon USE the USPS to deliver packages to unprofitable destinations - shifting their losses to the Post Office and, of course, to the American people. So that $9.5Bn loss (less than 0.10 per letter) that MGT is whining about is really a Government subsidy for UPS ($6.5Bn in profits), FDX ($5Bn in profits) and AMZN ($55Bn in profits).
Were the USPS to charge just $10 more for the 7.1Bn packages they delivered last year, they would have generated $71 BILLION in additional profits and STILL been 60% cheaper than UPS or FDX but it's CONGRESS that sets the rates they charge and it's CONGRESS that gives the Post Office insane pension requirements and it's CONGRESS that now wants to shut them down to get their hands on that $300Bn pension fund - THAT's THE SCAM Marjorie Taylor Green is in charge of!
And what will happen to the American People if 7.1Bn packages at $58.50 now have to be shipped for $123.63 (assuming UPS and FDX can even handle their business doubling without raising rates significantly)? Well, that would be $65.13 more per package or $462.4 BILLION PER YEAR in additional fees on packages alone and God knows what else on 112Bn pieces of mail should we privatize or shut down the USPS.
The USPS is just one big, obvious example of what the incoming administration plans to do to America. It was all written down in project 2025 and this is simply the beginning of the PR Campaign to get the people behind it. Also on the hit list:
- Department of Homeland Security (DHS) to be eliminated.
- Transportation Security Administration (TSA) to be privatized.
- The Department of Education to be eliminated.
- The Federal Emergency Management Agency (FEMA) to be eliminated. The costs of disaster preparedness and response would be shifted to States and local Governments.
- The Environmental Protection Agency (EPA) to be eliminated.
- The Department of Veterans Affairs (VA) is to "privatize as much as possible" and close many hospitals and clinics.
- The Department of Housing and Urban Development (HUD) will be taken apart and send much of its work to states and other agencies - bad news for low income and working-class families who rely on its meagre assistance.
- The Department of Justice (DOJ) will lose its independence and be under control of the President.
- The Centers for Disease Control and Prevention (CDC) will be drastically reduced and split into two entities: one gathering scientific data and one making public health recommendations and policies. Breaking up the CDC could hinder its ability to prevent and mitigate an outbreak. The CDC would also privatize all test development and laboratory functions and focus on providing guidance in these areas instead of "competing with the private sector."
Eliminating the Post Office alone turns a $9.5Bn loss into a $462.4Bn tax on the American people, who will shoulder the burden of the underappreciated and irreplaceable agency. Once these things are done - they are almost impossible to undo so we either learn to fight the dismantling of our country or sit back and watch it happen.
America lost 1.1M people to Covid under Trump's last watch and it was that awful CDC and their "doctors" and "scientists" that stopped things from getting much worse and the Republican Party is not going to make that mistake again, so moves are already being made to vilify and discredit The Center for Disease Control along with these other agencies in our efforts to make America great - again.Meanwhile, as good Capitalists (our investing theme for the week!), let's take advantage of the winds of change and put a bit of money to work in our Income Portfolio (we already have them in the LTP) by betting on UPS to come out ahead in this race.
That's net $3,100 on the $45,000 spread that's $28,500 in the money to start with $41,900 (1,351%) upside potential at $140 and our "risk" is owning 1,000 shares of UPS at $120 - $10 off the current price. If we are going to let them loot our nation - we may as well take our cut, right?
The USPS isn't just about delivering packages-it's about delivering democracy, equity, and opportunity to every corner of America. Let's try not to let them stamp it out...
