Online Retailers Spend Millions on Ads Backing Postal Service Bailout - The New York Times
By: Nicholas Fandos
The US Postal Service has a higher approval rating than President Trump and a much higher approval rating than Congress. According to Gallup polling, the USPS is viewed more favorably than the FBI, CDC, NASA, and the FDA.
S E E D E D C O N T E N T
A coalition of online retailers backed by Amazon plans to begin a seven-figure advertising blitz on Wednesday opposing President Trump's demand that the beleaguered United States Postal Service ratchet up its package delivery rates to avoid bankruptcy amid the coronavirus crisis, its top lobbyist said.
The coalition intends to spend more than $2 million on the campaign in an attempt to whip up Republican opposition to Mr. Trump's idea, pressing lawmakers instead to support a multibillion-dollar rescue package proposed by Democrats that would help the Postal Service survive the sharp drop in revenue and mail volume caused by the pandemic.
The ads will begin running nationally Wednesday night on Fox News's "Hannity" — one of Mr. Trump's favorite programs — and on Rush Limbaugh's radio show on Thursday. They do not mention the president, but label his proposal to jack up delivery prices by 400 percent "a massive package tax" on small businesses and Americans who rely on the mail for prescription drugs and other goods.
Amazon, CVS and others involved in the campaign rely on the Postal Service for delivery of millions of packages a year and could see significant business disruptions if the agency had to sharply increase rates or went bankrupt.
Many of the companies have been quietly lobbying lawmakers on Capitol Hill on the issue, but the advertising push will more visibly establish their position in a high-stakes political fight over the Postal Service's finances and future. Democrats have been pressing to include $25 billion in the next round of coronavirus relief legislation to prop up the service, which has said it could run out of cash by September without a lifeline from Congress.
But Mr. Trump has said he will not sign any pandemic relief package that helps the Postal Service unless it raises its rates. His views on the service appear to be predominantly shaped by his antipathy toward Amazon's founder, Jeff Bezos, who also owns The Washington Post.
"All of these companies know that in order to keep that market competitive and to keep operations most efficient, an affordable U.S.P.S. involvement is absolutely essential," said John M. McHugh, the former Army secretary and the coalition's chairman. He called Mr. Trump's proposal "dangerous," particularly at a time when Americans sequestered at home are increasingly reliant on delivery services and postal leaders are projecting yawning deficits.
Democrats have already endorsed an April request by the Postal Service's board of governors for more than $25 billion in emergency funds and other debt relief measures to get the service through the crisis. If Republicans in Congress lent their support, as well, it could increase pressure on Mr. Trump to go along.
On Wednesday, Representative Steny H. Hoyer, Democrat of Maryland and the majority leader, called the agency a "connective organ of our society" that Democrats would not allow to fail.
"We believe that we have to make sure the Postal Service, which is at risk of going bankrupt, will not," he told reporters.
Republican and Democratic lawmakers had reached a tentative agreement during negotiations on the coronavirus stimulus package to send the Postal Service direct cash, but Mr. Trump and Steven Mnuchin, the Treasury secretary, nixed the funds in favor of loan authority that allows the Treasury Department to set terms forcing the agency to raise prices and make other changes that would reduce costs and potentially disrupt service standards.
Small-government conservatives have long advocated shrinking the Postal Service, one of the federal government's largest agencies with a well-paid, unionized work force, to allow private delivery services like FedEx and UPS to gain greater market share. And many Democrats agreed that the agency's business model before the pandemic was not sustainable. But Mr. Trump's dim view of the agency appears to be more personal.
The president has said repeatedly that he believes the Postal Service is undercharging Amazon to deliver small packages. Aides say Mr. Trump has fixated on the company because of Mr. Bezos's ownership of The Post, whose news coverage and editorial opinions the president frequently attacks.
The president has called the Postal Service Amazon's "delivery boy" and called the national mail system "a joke" because of its dealings with the company.
More recently, Mr. Trump said, incorrectly, that the agency lost money on each package it delivered for Amazon and other online retailers. Independent analysts also say that a rate increase as significant as the one Mr. Trump wants would probably backfire, driving away customers for the Postal Service and leaving it in a weaker financial position.
"For whatever reason, you can imagine, they don't want to insult Amazon and these other groups," Mr. Trump said in the Oval Office in late April. "If they don't raise the price, I'm not signing anything."
Mr. McHugh said the concerns of his group, called the Package Coalition, were larger than Amazon.
"We are not looking for a fistfight with the president," Mr. McHugh said, but he added that Mr. Trump's antipathy toward Amazon has been clear.
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Even Amazon needs the US Postal Service.
And what about the bailout of the airlines?
Same thing actually.
Apples and Oranges. The airlines got decimated by the China virus. The Post Office was swimming in red ink long before the virus was sicked on the nation!
More get deliveries than fly.
The US Postal service created was the glue that held this country together for 200 plus years.
Is there a mandate for any service like the FBI, NASA, NOAA, DHS, PHS or any branch of the military to break even or provide a profit?
The concept of a single independent agency being required to provide a profit "or else"
is effed up. The Post office is one of the oldest services in the Federal Government (1775 Benjamin Franklin )
and the 1970 Postal Reorganization Act needs to be thrown out.
Are there private companies that do the same job as the US postal service cheaper.better w/o being subsidized by the US tax payer? Simple yes or no answer.
NASA is being phased out as private companies are being encouraged to take over. Hear very few people screaming about that. NASA is a piss poorly run organization, that cost overruns and delays are prevalent. They can't even put a man in space anymore relying on the Russians, and soon SpaceX to take on that burden.
As for the FBI, Military, etc- there are laws that prohibit private companies from doing the job. Doubt anyone wants to hear about any private US company that has their own standing military that can take on world threats.
I have nothing against the USPS. I use it at least once a month. However, it is not the epitome of cost and efficiency. I am sure UPS or Fedex would be overjoyed to take over the USPS business.
Government is expected to treat us all equally. There is nothing in the "contract" for cost or efficiency
otherwise we would not have beat the Japanese with nukes, nor would we have gone to the moon.
The Pony Express and Postal Service are legendary patriotic symbols of democracy because for 200 plus years it
not only fostered capitalism but treated the Smiths and Jones, the same as the Roosevelt's and Rockerfellers
Doubtful, 250,000 vehicles and 750,000 employees. A nightmare.
The USPS delivers thousands of prescriptions to both seniors and others. They deliver where FedEx, UPS doesn't deliver at a price that people can afford. Many PO's are hubs for small towns. I lived in a town of 1500 and we had a small PO that worked overtime to be sure everyone was served.
Congress is responsible for the shape that the USPS is in. USPS is the only government or private corporation that has to abide by this ridiculous mandate.
Removing the Post Office from Cabinet Level Department was a mistake
No surprise a business like Amazon would want the money losing Post Office to subsidize their shipping by sticking the taxpayer with the cost of the Post Offices failed business practices. It's a win for Amazon to keep the taxpayer on the hook for the cost of their shipping.
Do you realize that Amazon also uses UPS and FedEx, Dean?
In fact, Amazon has it's own air fleet and deliveries 50% of its own packages. They are a serious threat to both UPS and FedEx.
At some point, Amazon will be delivering the vast majority of its own packages.
USPS, FedEx, and UPS will be moving less and less of Amazon packages.
Yes I am aware.
Do you think that UPS and FedEx rates to Amazon are too low?
You do realize that UPS and FedEx both have negotiated lower rates with the USPS to move their packages/letters?
Then there is the moronic forever stamp. I really love it. I bought 4 times more than what I thought I would need for the future when they first came out. I do not regret that decision; I am sure the USPS does.
Again great for those that bought so many forever stamps in 2007 they will never need to worry about postage price increases ever again. Short sighted needed the damn money now stupidity from the USPS.
Can't fix stupid; but you can damn sure take advantage of it. Of course the US taxpayer is on the hook for it. So make sure you get out more than what you are putting in. Amazon, UPS, Fedex, and others sure as hell are.
Yes, I'm well aware of that. My question to Dean was are UPS and FedEx rates too low.
Since Louis DeJoy, a big Trump donor buddy, just got appointed as Postmaster General I'm sure they will have everything running as smoothly as all the other things Trump sticks his thumb in. /s
"The US Postal Service has a higher approval rating than President Trump and a much higher approval rating than Congress. According to Gallup polling, the USPS is viewed more favorably than the FBI, CDC, NASA, and the FDA."
That's no surprise to me, especially after it provided the evidence the Judge needed to declare that Kris Kringle (played by Edmund Gwenn in Miracle on 34th Street) was the real Santa Claus.