USPS prepares for 5 day delivery

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USPS needs to cut costs, but the union says no to 5 day delivery. Adminstration listens to unions , so I think unions will win. and PO will stay in debt
http://federaltimes.com/index.php?S=4186226
www.nalc.org

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Privatize it.

the gov't can't run a successful business cuz politics gets in the way.

Currently the WH is threatening to veto a bill that will keep some of the closed car dealerships open. Some of these dealerships have been very successful. However the admin. is preventing them from being opened because it wouldn't "be fair".

It's been a while since I've been in an economics class but I don't believe "being fair" translates into making profit.

MikeyA

Wow you know you're off base when I'm quoting the Heritage Foundation to prove you wrong.

Closing Car Dealerships: A Matter of Economics, Not Politics

http://www.heritage.org/Research/Economy/bg2296.cfm

Analysts have long recognized that the Detroit-based automakers have an outsized dealer network. The excess dealerships are in part a legacy of earlier times, when Detroit sold many more cars than today, and in part the result of demographic and business changes that have made fewer dealers necessary. For years, Detroit automakers have slowly trimmed their networks, but progress has been slow--in no small part due to state franchise laws that made termination difficult.[1] As a result, GM has some 6,000 dealers nationwide, and Chrysler (before terminations) had over 3,000 dealers. Toyota, by contrast, has only 1,240 dealerships. Altogether, GM and Chrysler dealers sold 497 and 475 cars per dealer, respectively, in 2008, while the average Toyota dealer saw off 875 cars.[2]

This surplus of dealerships hurt the manufacturers in several ways. First, although the dealerships are owned independently, they receive financial support from GM and Chrysler through a variety of mechanisms, ranging from low-cost financing for vehicles in inventory to local advertising assistance. GM estimates that it will save some $2 million in such costs for each dealer closed.[3]

Second, and perhaps even more significantly, a surplus of franchises means dealers for the same manufacturer end up competing among themselves, resulting in lower returns across the board. With less revenue, not only do dealers need more assistance from the manufacturer, but they find it harder to maintain service and quality levels.

But even though the terminations were justified, some critics argue that the process was unfair, using bankruptcy to deprive dealers of contractual rights as well as overriding state laws granting auto dealers special protections against closures. But clearing away unsustainable obligations is exactly what the bankruptcy process was designed to do.

The last paragraph alone makes the arguement that the Democrat Controlled Congress did. The Democrat White House argued for it to be "fair".

Yet the point was made about the unions and USPS. I was showing how the current administration has not had business as it's priority and has infact given the unions an UNFAIR advantage in the auto bankruptcies.

Apparently the White House only wants to be fair in the bankruptcy proceedings when it's not involving their big lobbyists/contributors.

MikeyA

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