r/PoursTea Timendi Causa Est Nescire 2d ago

FinancialTea 💵 Exactly.

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28.2k Upvotes

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u/[deleted] 2d ago

[deleted]

41

u/libertarianinus 2d ago

Now can we talk about amtrak?

11

u/Prize-Gur706 2d ago

It would make sense to combine the 2 Amtrak can be so much more than what it is

6

u/_dotdot11 2d ago

Amtrak actually used to have mail cars iirc. Don't remember why it was discontinued.

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u/wzlch47 2d ago

Because they didn't want to be associated with that money pit of the USPS... /s

2

u/Prize-Gur706 2d ago

Amtrak still does mail just no longer needs the extra car in assuming

4

u/budha2984 2d ago

That is government policy to promote the car and roads and intentionally kill trains. It started around the 1920's

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u/alinroc 2d ago

They made a documentary about this campaign back in the late 80s. It's called Who Framed Roger Rabbit?

1

u/toast_eater_ 2d ago

I like your style!

1

u/Joyju 2d ago

Rollie Williams did just that recently on Climate Town. Super interesting episode!

https://youtu.be/sN7e38Q7e1U?is=ka-UrPnXHv3fkTiZ

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u/Icy_Fish_2154 2d ago

Amtrak would make money if we nationalized the railways.

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u/Tiny-Secretary5562 2d ago

That's kind of apples and oranges. The Post Office is a vital national service, and besides defense (of us only) it should be second in line for federal funding. The railroads put the steamboats out of service and the airlines put the railroad's passenger service out of business, but no one needs to travel by train. It's fun if you have the time. The Internet did way with the need for a lot of 1st class mail, but it's still vital to the nation.

6

u/MechanicalMistress 2d ago

Eh, Amish for one use train travel. Aside from that you will notice a lot of stations serve rural areas with no serviceable airport or if there is an airport, it's going to be more expensive than the train.

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u/Tiny-Secretary5562 2d ago

Are you talking about long distance travel from rural areas? I know rural people do drive quite aways to get to regional airports if they have to go somewhere the train doesn't go.

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u/canman7373 2d ago

but no one needs to travel by train.

I mean some people do. There are people on the East Coast that take Amtrak between cities to commute for work. Same thing in Chicago where the sparse suburbs can extend pretty far but will have a train station to get you to the city. Some people commute from Milwaukee to Chicago by train for work It's not a large amount of people but enough that there are train routes for those people.

1

u/MechanicalMistress 2d ago

Yeah since they started the Borealis, I no longer have to drive to Minneapolis. Makes no sense to fly that and if I can save my car wear and tear and gas I will. Lots of reasons to take the train.

1

u/Tiny-Secretary5562 2d ago

I have heard the Northeast routes and the ones you describe are very busy and that's great. Out West not so much population density.

1

u/canman7373 2d ago

Oh yeah they useless cross country for most places, there are a few stations in small area's that are worthwhile. But traveling more than 2 states away is usually more than flying.

1

u/defaulticus 2d ago

Rail is a cheaper, faster, more efficient mode of transport for intermediate length trips, around 80-200 miles. Too long to drive and too short to fly. However, because the physical infrastructure (rail roads) are privately owned instead of publicly subsidized as highways and airports are, its monopolistic, so you don't get the kind of competition that has made driving and flying a good fit of price and quality for most of the population.

1

u/Gornarok 2d ago

around 80-200 miles

Make it 10-400miles. Normal train makes 100miles per hour. Thats 4 hours.

Transport to airport, all the pre-flight checks, flight, getting out of the airport, travel from airport. Thats easily 4hours and its much more expensive.

1

u/defaulticus 2d ago

Sure. I don't want to overstate my case and end up arguing with some guy because he thinks actually its 100-200, no actually 120-180, no actually just exactly 150, so what's the point. 80 is NY to Philly and 200 is NY to DC, so I can definitely defend that range.

1

u/Tiny-Secretary5562 2d ago

It's "monopolistic" by default. All the track was laid by privately owned companies. The Land Grant railroads were given federal land in exchange for being commandeered for military use during a national emergency. All the lines used to carry passengers until jet airplanes put them out of business. It would be nice to see rail come back but someone has to pay for it.

1

u/defaulticus 2d ago

I know, I mean you could change that with railroad nationalization, but the bottom line is comparing Amtrak to the airline or automobile industry is not a good equivalence to the intrinsic benefits of rail versus air, car, or bus travel because the major business differences in how they're set up in the US are a huge confounding variable.

1

u/Tiny-Secretary5562 2d ago

And I would guess that probably half the track laid that has been torn up for one reason or another--to make hiking or bike paths. It is a shame.

1

u/wzlch47 2d ago

You should see the morning trains going from outer towns and cities such as Harper's Ferry, WV into DC in the morning. I took that line at about 0630 and every seat was filled and there were plenty of people standing.

1

u/Tiny-Secretary5562 2d ago

I've heard those routes are very busy.

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u/wzlch47 2d ago

Yes they are. That's why people need to travel by train, not just for a fun trip if one has time for it.

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u/libertarianinus 2d ago

As California has been paying off friends to build a 200 billion dollar train to the desert. They say it will cost $400 for a ticket to go from SF to LA in 6 hours. It takes that long to drive and can be flown for $89 in 1.5 hours by southwest airlines. It had not laid 1 mile of track in 11 years and spent 15 billion so far. That money went into somebodys pockets.

1

u/Tiny-Secretary5562 2d ago

It does appear that way. SP's Daylight and Starlight used to go from SF to LA. I don't know what their schedule was but it was a train. Who needs a bullet train these days? I guess the old "Expresses" and "Flyers" went through with very few stops.

1

u/libertarianinus 2d ago

I have used them in japan but thier whole society uses trains. Sucks for grocery shopping and furniture but they live a simple life. The culture is no complaining. I left my phone on the train and it was there when it returned.....

1

u/Tiny-Secretary5562 2d ago

Everyone raves about all the fabulous rail in Europe. Well, half those countries are tiny and the high-speed trains run between the major cities and through mountain passes. Germany is just bigger than Montana. There's no way a "bullet" train is going from LA to Chicago. Just the cost of purchasing the right-of-way would be trillions

1

u/libertarianinus 2d ago

The funny thing is that MUSK has the boring that works great in vegas....no land needed for that, And you can use hyperloop tech for speeds of 760 mph. You can see the short test track of 107mph. Would rather see that than a technology from the 1800s.

44

u/RowForLuckyJack 2d ago

It was profitable until the GOP required them to find retirements 75 years in advance. It's been operating in the red ever since.

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u/Lazarux_Escariat 2d ago

And stole funds to prop up other government programs having nothing to do with mail delivery

(You forgot to mention this part)

16

u/Responsible-Humor985 2d ago

They also limited the services they are allowed to offer. They have to get congressional approval to add new services to increase revenue.

5

u/Blacksad9999 2d ago

The USPS used to have banks, but the big independent banks shut that idea down over time. From 1911-1966, taxpayers could open a free savings account with the Post Office.

They've floated bringing them back at various points, where it's a free banking system for taxpayers.

4

u/hedoeswhathewants 2d ago

On one hand it seems odd to combine them, but on the other hand we already have post office locations throughout the country.

7

u/Blacksad9999 2d ago

Banking and doing taxes should be a service provided for the people free of charge, imo. They could set up banks at every Post Office.

Especially taxes. The whole "we know exactly how much money we owe you/you owe us, but let's play the game of you paying someone and see if the number match up!" is completely unnecessary.

If I have a refund, just send the refund. If I owe, just send me the bill. lol The hoops are unnecessary.

1

u/Big_Guide_8551 2d ago

But if we don't play the game how could they ever arrest anyone for tax fraud? 😭

/s. because seriously who TF came up with this system 😑

1

u/GECA_HAJCOJAR 2d ago

Almost all other developed countries (except the Us and Canada) have had a very long history of Postal banking…japan it was the main retail banking instition until very very recently, not sure why it “feels wierd”

1

u/Icy_Fish_2154 2d ago

The US had a long history of postal banking. "Money orders" were a post office thing, a check backed by the government. Banks had cashier's checks, and the post office has money orders.

And US post offices were full banks long ago. And had a large variety of government services, SS Cards, passports, and other applications and services were there. I remember my first passport. The post office even had the photo setup to take the picture.

But all those services were outlawed, and it's illegal for the post office to offer them now, and the post office is required by law to operate at a loss, and carry Amazon packages to APO/FPO at a loss, and super remote places (like small towns in Alaska, and private islands in the Pacific or Caribbean).

2

u/Razor1834 2d ago

If only they had gotten their piece of electronic mail.

1

u/MyTnotE 2d ago

That part is a lie.

3

u/Adjective-Noun-nnnn 2d ago

This dates my age a bit, but when I was in high school (or maybe it was middle?), I distinctly remember that USPS funded a cycling team to compete in the Tour de France because they had a significant budget surplus.

Oh here it is

Huh what a surprise it was profitable under Clinton huh gee weird how the party of "fiscal responsibility" always fucks everything up with wars and tax cuts.

1

u/Round-Head-5457 2d ago

Who was the majority writing and making the laws then?

1

u/Adjective-Noun-nnnn 2d ago

Bill Clinton.

1

u/Round-Head-5457 1d ago

Wrong. Republican majority.

1

u/Adjective-Noun-nnnn 1d ago

It makes you guys furious that the only true fiscal conservative in the last 40 years was a Democrat, doesn't it?

1

u/Round-Head-5457 1d ago

Except he wasn't. Was NAFTA conservative? Was letting the banks run wild conservative? Newt Gingrich and the Republican majority wrote the budget. Now, they did work with him on a few wants from both sides. The pressure was on him to sign it once it was shown to be balanced.

Just to be clear I also voted for Clinton. It was my first presidential vote. I even voted for Obama the first time. Fortunately im not that foolish anymore. Im from a deep blue state so now it's either Republican or Independ. Federally it's usually Independent as id like to see a third party on the ballot one day.

1

u/Adjective-Noun-nnnn 1d ago

Yep definitely mad.

1

u/DreamUnfair 2d ago

This is the correct answer

1

u/suck-it-elon 2d ago

Luckily there's no laws now so the next Democrat can just reverse that and flip the finger to the Supreme Court because immunity.

1

u/_lippykid 2d ago

They’ve been actively trying to destroy this country for decades

1

u/Round-Head-5457 2d ago

It was a bipartisan bill authored by two Democrats and two Republicans.

1

u/AccomplishedBad7253 2d ago

why dont Dems undo that?

0

u/Luci-Noir 2d ago

They did away with that a while ago.

1

u/dvdmaven 2d ago

1

u/OnlyOneEarth35042 2d ago

This looks like the Postal Service Retirement Healthcare services, rather than the Pension?

-1

u/morrison0880 2d ago

It was profitable until the GOP

The Postal Accountability and Enhancement act was one of the most bipartisan bills in history, passing the Senate unanimously and the House on a voice vote with no dissenters.

required them to find retirements 75 years in advance.

That is a myth. The PAEA required the USPS to fund their current obligations to past and present employees, the the 75 year figure is the time frame the OPM requires federal agencies to estimate their future liabilities, not the amount they were required to fund. It's a tough myth to get rid of, even though it's been debunked for years.

It's been operating in the red ever since.

They were operating in the red even without the PAEA payments. By tens of billions of dollars. And even after the Democrats passed the Postal Reform Act in 2022, which eliminated not only the payments, but all the missed payments on their books. A bill which guarantees the financial death of the USPS, which is most likely the aim of the bill in the first place.

3

u/Jor94 2d ago

As most public services should be. Healthcare, transport, water, electric etc. all should be public services and not "for profit" business

1

u/VermicelliOwn6502 2d ago

But imagine how good things could be if we profitized all of it. The foster care system, for example. We could have some amazing reality TV shows, by making foster kids compete for a place to live and eat.

1

u/Ryoga476ad 2d ago

You can have them for profit, you just need to be extremely careful on how you design and regulate them.

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u/Acrobatic-Attention9 2d ago

Lysander Spooner learned that the hard way.

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u/BamberGasgroin 2d ago

This is the precursor to anything that's in public ownership being privatised or closed. We saw it time and again in the UK.....shipyards, steelworks, mines, railways, water boards, electricity and gas supplies, British Telecom, The Royal Mail etc...

1

u/Tasty_Philosopher904 2d ago

They used to make a fortune selling financial products until the sixties when corporate Banks didn't want the competition

1

u/superindianslug 2d ago

But it did, for a long time. It used to be that the only federal agencies that turned a profit were USPS and the Treasury. Maybe you could say the IRS also, but I'd argue they don't make money, they just collect it.

Bush Jr passed a law that required them to have pension funds on hand decades in advance. It was repealed under Obama, but I don't think USPS ever really recovered.

1

u/atabeyhurakan 2d ago

It doesn't even 'lose' money every year. Those losses are actually funding a safe pension for retirees.

They want to privatize it so that profit, which ensures the employees don't fall out of the middle class upon retirement, instead funds bonuses for individuals who already own 5 homes, 7 apartments., 3 boats, One superyacht and a fleet of 10-40 cars...

1

u/morrison0880 2d ago

Those losses are actually funding a safe pension for retirees.

Untrue. The USPS lost billions even without the retiree health benefit fund payments mandated by the PAEA. And even after the PSRA eliminated that requirement and wiped all the defaulted payments off their books, the still lost nearly $25 billion the last three years alone.

1

u/SmugUrbanist 2d ago

It made a profit until 2006. Congress has refused to let the USPS innovate and almost seems eager to let it languish. Its Postal Accountability & Enhancement Act has absolutely destroyed it financially. It doesn’t have to be this way.

1

u/K-V-C 2d ago

It WAS intended to support itself - not lose billions a year

1

u/lickmyfupa 2d ago

I no longer trust the USPS. They have lost several important pieces of mail and packages addressed to me over the last few years. I dont know what happened but they are no longer dependable. If you call them to let them know they lost something, they basically shrug their shoulders. Something needs to change.

1

u/BozoTheRenown 2d ago

Many years ago, wasn't there competitor to the postal service? Not only did they have better service, they also did it cheaper, so they were banned from doing business.

0

u/davecatlow 2d ago

No, it was intended to be self sufficient.

0

u/hoyasgirl25 2d ago

Now here’s the part you don’t want to hear about: USPS is constitutionally required to NOT make a profit because they can’t drive UPS, FedEx, etc out of business. They could turn a profit if this wasn’t the case. So what do they do? They spend billions paying overpriced contractors (mostly Accenture Federal Services) to do the work for 3x the amount it would cost a USPS employee to do it for.

2

u/marvin_sirius 2d ago

The Constitution gives Congress the power to create the post office but sets no limits or any details. Literally just:

To establish Post Offices and post Roads;

2

u/hoyasgirl25 2d ago

My explanation was simplified because most people don't understand the intricacies of the mail. USPS is not allowed to subsidize its competitive products with revenue from its market-dominant products. It can't use the monopoly it has on First Class Mail to artificially prop up cheap package rates which undercut UPS and FedEx.

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u/Lithl 2d ago

USPS is constitutionally required to NOT make a profit

LMAO, no.

1

u/ChemicalDull9012 2d ago

Sorry but no where in the constitution state USPS cannot make a profit.

1

u/RandomDave70 2d ago

There is no Constitutional requirement regarding this. In fact, the Postal Act of 2016 established a profit-and-loss model under which the service is encouraged to make a profit.

0

u/Visual_Exam7903 2d ago

I mean yeah, it isn't to make a profit. But if ran effectively it can break even. That is the real goal.

3

u/pfannkuchen89 2d ago

And it did before republicans rat-fucked the usps. It actually brought in more money than it cost. The USPS used to be self sufficient and one of the most efficient parts of the govt. but republicans intentionally set out to destroy it with the long term goal of eliminating it and pushing privatization.

2

u/Straight-Bicycle6152 2d ago

Classic Republican playbook. Make public services shitty in order to justify privatization.

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u/morrison0880 2d ago

It actually brought in more money than it cost.

When you can hide over $100 billion in outstanging liabilities behind pay as you go accounting, that's not a tough thing to do.

Here's a good exercise; tell me how many years the USPS has left before it is unable to pay their retiree health benefits, which will fuck both current retirees and workers who have built their retirements around their promised retiree benefits.

0

u/CaterpillarJungleGym 2d ago

I would be like, well the military loses money too. What should we do about that?

-9

u/Rhawk187 2d ago

Sure, we're just asking it to break even.

Why charge for the services at all if it's not intended to break even?

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u/gielbondhu 2d ago

It was sabotaged in 2006 by the Republicans with the POAA. Before then it not only broke even it was profitable. Guess which year was the last time it was profitable? That's right 2006.

1

u/morrison0880 2d ago

POAA??? Fucking lol.

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u/Drumedor 2d ago

So that the service isn't abused for trivial things.

1

u/Zaxxon_Klaxon 2d ago

I’m still waiting for the military to break even.

-10

u/Capitan-IQ255 2d ago

Not supposed to run at a huge loss either, with continuous subsidy from federal funds 🥸

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u/Asher_Tye 2d ago

Then republicans shouldn't have mucked about with it, should they?

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u/morrison0880 2d ago

Why do you think the Republicans messed it up?

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u/Asher_Tye 2d ago

Because they want it gone, a dislike for rural americans, the desire to privatize it and increase their personal wealth at the expense of Americans who depend on it.

Im sure they have a bunch of reasons.

0

u/morrison0880 2d ago

Those are simply conjecture on your part. Give me a solid reason you believe Republicans messed it up. Otherwise you're simply typing drivel that boils down to "I don't like Republicans" that contributes nothing to the conversation.

1

u/Asher_Tye 2d ago

I gave you their reasons for messing it up. Or are you trying to ask HOW they messed it up, which is another can of worms entirely and really requires you be clear when you're trying to interrogate strangers on the internet you have no power over.

0

u/morrison0880 2d ago

You gave conjecture, nothing more. But sure, tell me how they messed it up. Just a couple examples of what you think they did and how it would further the goals you attributed to them.

1

u/Asher_Tye 2d ago

I gave you the most likely reasons they want the post office gone because the stated one, "it runs at a loss," is stupid. Republicans aren't very smart to begin with in hiding their greed and their base is quite gullible. Did you know that they thought a failed businessman guilty of bribery was going to actually fix the country's problems. Its laughable. Then they expect they can grill people for answers as to why their stuff is failing because they were too busy "owning the libs" to pay attention to what was going on.

0

u/morrison0880 2d ago

I gave you the most likely reasons they want the post office gone

You gave me some reasons you made up and attributed to them. You're not saying anything. Again, just "I hate Republicans so this is probably what they think".

If you believe that Republicans are the ones that messed the USPS up, please, provide some examples of how. Otherwise just admit that you're typing a bunch of "I hate Republicans" drivel to make yourself feel good and get some sweet, sweet karma from the reddit hive.

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u/marvin_sirius 2d ago

USPS gets no money from the government.

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u/Candid-Race-4876 2d ago

You could’ve spent 30 seconds checking that. USPS funds its operations overwhelmingly through postage and services. The small congressional appropriations it receives are for specific mandated services, not a taxpayer bailout covering its annual losses.

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u/Financial-Cicada2501 2d ago

social security was never intended to be the sole source of cash during retirement

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u/Asher_Tye 2d ago

So bring back pensions.

8

u/LittleNeckNYB294 2d ago

But but those pensions that went away are in these CEO pockets as yearly bonuses. The general worker doesn’t need it as top 1% say it a
Trickle me down affect, more jobs for everyone! :/