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The Conservative Reform Network
The Newsletter for Independent, Conservative Political Activists

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Conservative Reform Network

PrePaid Tuition Program

Is a Monopoly Necessary?

Coercion Rather Than Contract

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Dear Lowman,

The "Postal Model is the model" for the too many government programs, especially those delivering a service that a Free Market business responding to consumer demands. It is worth looking at the "Postal Model" to demonstrate how centralized and politicized spending can bankrupt even a government monopoly on what many would consider an essential service.

This model applies to federal, state and local levels.
You can view more posts on my blog.

PA's PrePaid Tuition Program

Another government monopoly goes bankrupt in Pennsylvania - The Postal Model.

This program with a BILLION dollar budget has a revenue shortfall of $222 million! Another government monopoly follows the "Postal Model". The Legislature and Governor have given this college savings program competitive advantages over nongovernment plans and it still cannot be "profitable", that is, income exceed expenditures, and it continues on where a nongovernment would shut down a failing enterprise that fails to accomplish its purposes. In other words, "The Postal Model".

Is a Monopoly Necessary to Deliver Services?

Walter Burrus

American Postal Workers over paid Union President Walter Burrus claims only a monopoly on delivery of first class can deliver mail to rural areas. In fact, not true. Many services are delivered to ruaral America by nongovernment Free Market businesses at affordable prices, prices people are freely willing to pay. And, like any union organizer, extols the value of uniformity, equating, implicitly, with equality. Rural America seems to be able to buy TVs and affordable cable service and there are newspapers, private and unprotected, everywhere.

It is exempt from paying federal, state, or local taxes on its income, sales, purchases, or property. It is immune from most forms of regulation, such as antitrust, motor vehicle registration, parking tickets, zoning, and land use restrictions. It is also able to borrow money at the lowest possible rate through the U.S. Treasury. And with all these advantages, the USPS's expenditures exceed revenues by billions.

John Potter

The US Postmaster, John Potter, received $850.000 in total compensation in 2009 . Other top USPS executives did well also. And USPS buys $1.2 million employee house. Not Wall Street super star level compensation but well above Main Street pay scales.

Coercion Rather Than Contract

Unions Refuse to Make Concessions to solve Rhode Island state budget revenue shortfall. Unions intend to coerce citizens to support their monopoly wages. There is a similar intransigence on reducing wages and reforming work rules is found in Philadelphia.

"The Postal Model" from the Union which yields no concessions even in the face of declining revenue. Note the "pre-funding" refers to making Union Pensions actuarily sound, that is, there will be enough money to meet the obligations made to retired and future retirees. What a concept?

And from management, a former VP comments in letters to WSJ editors.

WSJ offers a solution to The Postal Model, a government monopoly, which is supposed to deliver mail everywhere in the US at an affordable price. There is no reason that this has to be, solely, a government service. The ability of consumers to freely contract aoffers a solutionnd cooperate with nongovernmental, free market business seems a reasonable option in a free society. "The Public Option" in mail delivery is a virus that victimizes the consumer, productive businesses which employ people and produce goods and provide services we want and need.

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