Exxon’s Funding Of Climate Denial Turned Americans Against Their Own Government For Profit

Exxon and other fossil fuel companies may have committed a crime of enormous proportions, and more and more elected officials and others are demanding an investigation.

The charge is that Exxon scientists and management knew since the late 1970s that the company’s product was helping cause our planet to warm “catastrophically,” but management responded by covering this up and disseminating disinformation – joining with other companies to commit an enormous fraud on the public for profit.

For some time, environmentalists have been warning that oil and coal companies were behind a broad campaign to deceive the public and block the government from regulating or taxing carbon pollution. Sites like ExxonSecrets, the Union of Concerned Scientists, SourceWatch and their Coal Issues portal, CoalSwarm and many others have been exposing, warning, documenting and working to get the word out.

Continue reading

Another Attack On Our Postal Service

Should we run our country for the benefit of We the People, or so that a few people can profit off of We the People? This is a question that is rising to the surface in a battle between those who want the United States Postal Service (USPS) maintained and expanded, and those who want it privatized.

There are some conservative ideologues who just can’t stand that the USPS demonstrates government doing its job of helping make our lives better. As with Social Security, they attack it relentlessly and endlessly.

The latest push to privatize the USPS came from the Elaine Kamarck at the Brookings Institution, in “Delaying the Inevitable: Political Stalemate and the U.S. Postal Service.” Kamarck writes:

The USPS exists right now in never-never land. It is not fully public and it is not fully private. It is supposed to compete and innovate but it is stifled by law and saddled with a governance structure that impedes innovation. It is time to decide its future.

Using the old “buggy-whip” analogy, Kamarck claims that much of what the USPS does is obsolete. Paper mail is “fading away” because of the Internet (“only” 23 billion pieces of first-class mail were sent last year). UPS and FedEx compete in parcel delivery.

Kamarck’s defines USPS’ dilemma as a “stalemate” in Congress that prevents lawmakers from passing legislation that would address the postal service’s challenges. (This stalemate is really between anti-government privatizers who want FedEx and UPS to take over all mail and package delivery, and the public who rely on the USPS and want it maintained and even expanded into new services like public banking.)

The “solution” Kamarck recommends is splitting the USPS in two. One part would be a public institution that delivers mail, and only mail, to everyone nationally. (This part is a reluctant nod to the pesky fact that a Post Office is mandated in our Constitution and popular with the public.) The other would be a privatized organization for parcel delivery, a business that would compete with (or, more likely, immediately dismantled and sold to) FedEx and UPS.

Of course, for the resulting public mail-delivery institution to “make money” off of the public, mail delivery would have to be cut way back. Saturday delivery would have to end. It would have to get rid of several mail-processing facilities, even though this would slow delivery. Other steps – layoffs, along with pay and benefit cuts for the workers who remain – would make the service more “efficient.” Over time, service would degrade and eventually this would all end badly for the public and the employees. (But, of course, that’s the point.)

The paper has been promoted in various media outlets as offering partial privatization as a sensible solution to a congressional impasse. In “Should the Postal Service be sold to save it?” at The Washington Post, Lisa Rein summarizes the Brookings paper:

“… with three Congresses in a row failing to pass legislation to help stabilize its finances, some lawmakers and policy experts have reached the consensus that it’s time for the government to sell the post office.

This group was limited for a few years to conservatives and Republicans in Congress. But now a Democrat at the centrist Brookings Institution, Washington’s premier academic think tank, is joining the privatization side, arguing in a new paper that Congress’s inaction requires that something be done.

Rein gives a nod to that pesky “We the People” part of this, writing,

The idea of selling off any part of the government agency for which Benjamin Franklin first served as postmaster general has drawn fierce opposition from Democrats in Congress and the still-powerful postal unions. Others say it would be politically untenable.

That’s another way of saying:
1) The postal service is mandated in the Constitution (“Ben Franklin”) because of its importance to democracy and commerce.
2) A lot of people who work there (“still-powerful unions”) would be forced into low-wage jobs if it is privatized, damaging communities and the economy.
3) The public wants it and they can still vote (“politically untenable”) – for now.

(Mentioning that Kamarck is “a Democrat” imbues bipartisan “credibility” on the privatization argument.)

Competes With Private Sector

The meat of Kamarck’s argument is not really “stalemate.” The real argument arrives on page 8: The USPS competes with “the private sector.” In our current economic system We the People providing things that make all of our lives better is not desirable because this competes with the ability of a few already wealthy people to profit by providing those same things (but only to those who can afford it). So in our system We the People are prevented from providing for ourselves, saying this “unfairly competes” with the private sector.

Here is what Kamarck writes about this competition:

Some argue that the Post Office should get into more new lines of business – from delivering groceries to teaming up with retailers to deliver packages on the same day they are ordered. But this raises the thorny question of subsidies. To what extent do the U.S. government subsidies for the USPS create an unfair playing field for all those who are already in the private market place delivering everything from groceries to clothing?

The monopoly the USPS enjoys in the areas of mail delivery and mailboxes, as well as a host of other advantages, including tax subsidies, preferential interest rates on borrowing, and extensive real estate, means that when the USPS competes with the private sector, it enjoys an unfair subsidy. According to a recent study, these monopoly rights and privileges add up to an estimated $18 billion dollars in special annual savings and subsidies for the postal system.

Why yes, We the People could do a great job of providing these things for ourselves, if we were allowed to. But that would “unfairly compete” with those who want to profit of off doing those things, while only doing them for people who have enough money to pay for them.

USPS Hobbled

The USPS is financially hobbled. It is essential public infrastructure, but does not receive appropriations from Congress and is required to “make money” off of serving the public. But it also has to pre-fund the benefits of employees so far into the future that it is setting aside money for possible employees who are not even born yet.

The USPS is also hobbled by preventing it from doing things it could be doing to serve the public. With offices in almost every community in the country the USPS could offer public banking to serve the millions of Americans who do not have bank accounts and cannot cash and write checks or use ATMs. (Here’s an idea for serving the public: This bank could even offer insured retirement savings accounts, perhaps up to $250,000, and with some money from Congress could pay maybe 3% above market interest rates.)

The USPS could also serve the public by providing low-priced, super-fast fiber internet — and even cell service. It could even provide low-price cable TV services. But currently it is prevented from doing these things because it would “unfairly compete” with the private Internet and cell and cable providers who as we all can see are serving the public so well by delivering super-fast and low-cost (and fee-free) internet and cell and cable — all with absolutely first-class customer service! (HA!)

USPS A Major Employer, Providing Benefits

Here is an important part of this whole equation: The USPS is a major, major employer – the second largest employer in the United States after Walmart. The USPS should serve as a model employer, pay great wages, provide great benefits and be a great place to work. This is what We the People of the United States would want everyone to have at their job and what We the People should provide when it is up to us.

But corporate-funded, anti-government politicians again and again “save money” by forcing “efficiency” in the number, pay and benefits of public employees, or by just outsourcing their jobs. The outsourced companies hire at near-or-minimum wage with few-or-no benefits (so they can pay a few at the top astonishing amounts). This loss of good-paying jobs combined with the low wages of the replacements creates a strain on local communities that often have to provide assistance. Then, of course, the anti-government ideologues complain that government is providing “handouts.”

Never mind the subsidies private employers like Walmart get from us because they pay so little that the public has to provide public assistance to make up the difference so their employees can even eat. (Meanwhile the Walton family has more wealth than the bottom 40 percent of Americans combined.)

If the USPS is partially or completely privatized, employees will be moved into low-wage positions with little or no benefits, working longer hours. Their communities would suffer as they cut back from spending and paying taxes, homes are foreclosed, public assistance is needed and problems of poverty start to appear. This is not what We the People want for our society, but this is what would occur.

Privatizer’s Playbook

Here is the privatizer’s playbook: Create a crisis and then offer “solutions” that fit their agenda. Make government not work and then say that because government doesn’t work we should get rid of it. In USPS’ case, engineer a requirement that the USPS “make money” instead of receiving government appropriations. Then hobble its ability to do that. When service is cut back, complain that it isn’t doing a very good job and complain that it should be privatized because it is “going broke.” (You may have also heard that Social Security is “going broke.” However you may not have heard that the military is not “making money” and is “going broke.”)

When a full-on frontal assault fails, offer incremental steps that lead to eventual total privatization or dismantlement. Break it into pieces, leaving guaranteed failure behind.

Of course, never, never mention that Congress could just appropriate money as needed for the USPS, and that the USPS could take advantage of its impressive national infrastructure to expand into new areas that serve public needs.

These obvious and simple solutions do not fit the privatization agenda. Instead, define the problem in other ways that lead to the desired solution. This is what they do, and this is what we are seeing here.

Note that FedEx is in the “Honor Roll of Contributors” to the Brookings Institution. Meanwhile another Brookings item calls the USPS “a hopelessly retrograde enterprise.” Writes Kevin R. Kosar, “To be clear, the Postal Service cannot be abolished; at least, not immediately. … But a day of reckoning must come.”

When that so-called “day of reckoning” comes, will We the People who benefit from all of the services that the USPS does provide and could provide end up being delivered a bill of goods?


This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

VW Case Shows Need For More And Bigger Government

Again and again we hear about corporations doing bad things so they can make more money: polluting, selling contaminated food or otherwise harming people’s health, selling products that injure people or just don’t do what they advertise, tricking and scamming people out of their money, selling banned goods or providing financial services for terrorists or drug cartels, and so many other things that are not good for people or society.

Wouldn’t it be great if there were some entity that was more powerful than these corporations, whose purpose is to protect us, reign these corporations in, make and enforce rules, prosecute offenders and put a stop to this stuff?

This Week: VW

This week we are hearing about Volkswagen (VW). For years the company claimed they were selling “clean diesel” engines, but they were tricking their customers, the public and governments around the world. Their cars are really a public health threat, putting out up to 40 times the legal limit of pollutants that cause asthma and other disease.

VW built a “defeat mechanism” into as many as 11 million cars. This mechanism let the cars pass government tests, even though they were polluting like crazy when driven in the real world. The mechanism made the engine run clean during government tests, then when it detected that the tests were finished it set the engine to start polluting again.

For years these cars have been harming people and until now VW was getting away with (and making big profits from) this. They were finally caught, and we will see whether executives are prosecuted, or if this will be one more case of weak (or corrupted) government issuing a fine that lets a company make its shareholders pay the cost instead of holding the executives that did it accountable.

The Fix For The VW Cars

This is huge. Up to 11 million cars have these “defeat” mechanisms in them. These cars have to be fixed because their emissions can cause people to develop asthma and other respiratory diseases. But fixing this is a big problem.

According to Wired, in “VW Owners Aren’t Going to Like the Fixes for Their Diesels,” there are two choices for fixing these cars – and either choice means the car owners end up losing a lot of what they thought they had paid for.

The first is to update the software so the cars always run in the “test mode” that defeated the emissions tests. But the changes the software made to the engines to get them to operate within the legal emissions limits while being tested will cause the car to either have poor acceleration or poor gas mileage.

The second is to actually fix the problem that causes the engines to pollute. According to Wired, VW would have to add a “urea” tank and the means to inject this into the catalytic converter:

The standard way of making a diesel run cleanly is to use selective catalytic reduction, a chemical process that breaks NOx [mono-nitrogen oxides] down into nitrogen and water. Part of that process includes adding urea to the mix. The super effective system can eliminate 70 to 90 percent of NOx emissions, and is used by other diesel manufacturers like Mercedes and BMW. The downside is that it adds complication to the system, and cost — $5,000 to $8,000 per car. And you need to periodically add the urea-based solution to your car to keep it working.

… So it seems the logical way to get those cars to perform like their diesel cousins is to add a urea. VW’s unlikely to embrace that option, because adding hardware to half a million cars would be far more expensive than a computer update. It wouldn’t be any fun for the TDI owner, either. Not only do you have to spend an afternoon with your local dealer, you have to make room for the tank. That could mean sacrificing cargo space or giving up the spare tire.

The cost to VW will be huge, and the customers lose either way. Never mind all the people suffering asthma and lung disease resulting from the pollution these cars were emitting.

VW Not An Isolated Case

The New York Times reports, in “Volkswagen Test Rigging Follows a Long Auto Industry Pattern,” that,

For decades, car companies found ways to rig mileage and emissions testing data. In Europe, some automakers have taped up test cars’ doors and grilles to bolster their aerodynamics. Others have used “superlubricants” to reduce friction in the car’s engine to a degree that would be impossible in real-world driving conditions.

Automakers have even been known to make test vehicles lighter by removing the back seats.
… [In 1973 the EPA] fined Volkswagen $120,000 after finding that the company had installed devices intended specifically to shut down a vehicle’s pollution control systems. In 1974, Chrysler had to recall more than 800,000 cars because similar devices were found in the radiators of its cars.

[. . .] Beyond emissions, the industry has long been contemptuous of regulation. Henry Ford II called airbags “a lot of baloney,” and executives have bristled at rules requiring higher mileage per gallon.

VW might not even be the only company that is scamming government testing labs with “defeat mechanisms’ right now. From the report,

“We call it the tip of the iceberg,” said Jos Dings, the director of Transport and Environment. “We don’t think this will be limited to Volkswagen. If you look at the testing numbers for the other manufacturers, they are just as bad.”

The Times report lists several examples of the auto industry engaging in profit-making by endangering their customers. There was the “unexploded Pinto” problem of gas tanks blowing up. There were 271 deaths from the Ford-Firestone tire scandal. There were the Takata airbags that either don’t work or injure people. There was Chrysler selling as new cars that had been driven for 60,000 miles with the odometers disconnected. Click through, there’s plenty… But no one has been put in jail.

So what VW was caught doing is “not an isolated incident” and, in fact, VW had already been caught doing the same thing in the 1970s.

Not Just Auto Industry

VW is hardly the only company in the auto industry engaged in these practices, and the auto industry is hardly the only industry engaging in this kind of activity.

● Of course, tobacco still kills over 480,000 Americans each year and no one even talks about doing anything about it. Everyone understands this is because of the great wealth and power of the tobacco companies as well as their influence over a certain political party. More than 480,000 terrible, painful deaths each year!

● The “Obamacare” health reform was written the way it was because it was understood from the start that the insurance and pharmaceutical companies had enough power to block anything they didn’t like. So we didn’t get Medicare for All or even a “public option.” These industries had already blocked the administration of President Bill Clinton from reforming the health care system, leading to more decades of deaths, untreated illness and bankruptcies.

● In 2000, The Nation reported, in “The Secret History of Lead,” that the lead industry knew and kept secret for decades that they were poisoning people with lead in gasoline, paint and other products, and instead of doing something about it they protected their profits by covering this up and attacking government efforts to do something.

The leaded gas adventurers have profitably polluted the world on a grand scale and, in the process, have provided a model for the asbestos, tobacco, pesticide and nuclear power industries, and other twentieth-century corporate bad actors, for evading clear evidence that their products are harmful by hiding behind the mantle of scientific uncertainty.

Mother Jones’ Kevin Drum reported on just one of the societal consequences of this decades-long crime, in “America’s Real Criminal Element: Lead.” His investigative report concluded that lead may be “the hidden villain behind violent crime, lower IQs, and even the ADHD epidemic.” That whole put-millions-in-prison thing that has ruined so many lives? Oops, it might have been the lead industry’s doing. Are any lead industry executives in jail for that?

● The fossil-fuel industry is notorious for polluting and for causing climate change. The industry has captured an entire political party and has them fight the development of alternative energy sources, taxes on carbon, fuel-saving public transportation initiatives, other energy-saving efforts, etc. The industry funds a climate denial cult that threatens the entire planet.

These are just a few of so many examples.

Big Government Prosecutions Can Make A Difference

Corporations save money by cutting corners. Dumping carbon into the air. Putting lead in gasoline. You name it. They price the potential fines into the product as a cost of doing business. And company shareholders pay those fines. The executives who commit the actual wrongdoing are rarely if ever held accountable themselves.

Many companies can safely assume that the government isn’t even going to catch them or do anything if they do. Government cowed by intense anti-government propaganda. We hear that “government can’t do anything as well as business can,” that “big government threatens us,” and “government takes money out of the economy.” We hear about “burdensome government regulations” that “kill jobs” on a 24/7/365 basis. Government and democracy do not have an advertising budget to counter this relentless propaganda.

Government is underfunded because the propaganda elects corporate-backed anti-government politicians who convince people to allow tax cuts (on the corporations and their owners) paid for by cutting back on government. And especially cutting back on government regulation and enforcement. The result is government enforcement is backing down all the time.

Industry executives revolve through the door into government and then back into plush corporate offices where they collect rewards for protecting their industries. Our “captured” government notoriously refuses to bring corporate criminals to justice. Not one banker, for example, was prosecuted for obvious crimes leading to the 2008 financial crash.

However last week we saw one rare instance of a prosecution of individuals for corporate crime. The people running Peanut Corporation of America, a Georgia peanut company, were prosecuted after a salmonella outbreak that sickened and hospitalized hundreds of people and killed 9 of them. Company executives knew for years their product was made in unsafe ways that were causing contamination — but instead of spending what was needed to fix the problem they covered this up. So the owner was sentenced to 28 years in prison and other executives were sentenced to 20 years.

Thanks to an actual prosecution resulting in prison terms for company executives it is likely that the public will suffer fewer food-safety problems, at least for a while.

Our government supposedly exists to protect We the People from wealthy and powerful interests, including other countries. Our revolution against the wealthy British aristocracy and the King’s corporations testify to this. A government that is “of the people, by the people and for the people” should be big enough, strong enough and funded enough to reign in companies and billionaires, and protect We the People from the kind of corporate misbehavior we saw from Volkswagen — long, long, long before it involves 11 million cars all spewing out serious threats to public health.


This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Climate Denial Is Corruption, and the GOP Is Captured By It

While the world warms, the climate deniers are out in force, trying not only to sabotage American efforts to fight climate change but also to undermine international talks.

We are witnessing a spectacle of corruption, and the stakes literally could not be higher. It is an astonishing spectacle. The Republican party is working to sabotage efforts to fight climate change and is doing this because the fossil-fuel industry – and billionaires whose fortunes came from that industry – funds so much of their messaging and campaign infrastructure, and their candidates. This is not ideology; it is flat-out corruption.

Continue reading

Trump: Don’t Make Corporations Pay Their Taxes

Republican economics has been stated a thousand ways by a thousand (always paid) voices. But the basic idea behind all the schemes has been hard to pin down. Finally Republican front-runner Donald Trump has spelled it out in a way anyone can understand.

Thursday’s Progressive Breakfast (you should subscribe, it’s free, it’s really good) contains a story in which Trump clearly articulates the Republican/Billionaire/Wall Street case for a low-or-zero tax on corporate profits: “because they don’t want to pay the tax.”

Trump Sides With Multinationals
Donald Trump backs repatriation in Time interview: “Pfizer is talking about moving to Ireland. Or someplace else … Do you know how big that is? It would wipe out New Jersey … They have $2.5 trillion sitting out of the country that they can’t get back because they don’t want to pay the tax. Nor would I … We should let them back in. Everybody. Even if you paid nothing it would be a good deal. Because they’ll take that money then and use it for other things. But they’ll pay something. Ten percent, they’ll pay something.”

There it is in a nutshell. The Republican case for low or no taxes: “because they don’t want to pay the tax.”

Continue reading

Right-Wing Shutdown of Ex-Im Bank Already Threatening to Kill Jobs

Conservatives deride using government to help American companies export their goods as “picking winners and losers,” even when the winners are American exporters and workers.

So Republicans have closed the Export-Import (Ex-Im) Bank, hopefully temporarily. The Ex-Im Bank provides financing guarantees to customers of American exporters if they cannot obtain financing elsewhere. This helps American companies make the sale.

Continue reading

Death To Pensions – Video


Former Enron trader and hedge fund billionaire John Arnold is launching a multimillion dollar national PR campaign attacking the hard-earned pensions of public sector workers. Arnold has already quietly poured tens of millions of dollars into his efforts to persuade politicians to reduce middle class retirement security and now it looks like he may really just be getting started.

Conservatives Choose Govt Hatred Over Markets

Conservatives are supposedly all about markets. Markets should decide, not voters. But when it comes to the law of supply and demand for government debt, they go blind.

Greg Ip in the Wall Street Journal poses this surprising question: “Is Government Debt Too Low?

The interest rate that rich countries with super-safe debt (in the case of the eurozone, that means Germany but not Spain) pay is astonishingly low: lower than the growth rate of nominal gross domestic product (that is, GDP before subtracting inflation). In the U.S., the Treasury yield has gone from roughly equal to growth in nominal GDP in 2005 to 3 percentage points lower today.

By Mr. [Brad] DeLong’s reckoning, this means those countries are borrowing too little. Bond yields and prices move in opposite directions, so low government bond yields equate to very valuable government bonds. Mr. DeLong asks, “Isn’t the point of the market economy to make things that are valuable?” Since the debt of rich countries is “very cheap to make… shouldn’t we be making more of it?”

Say What?

Here is the argument. There is a huge demand for U.S. government bonds. There is so much demand that interest rates are exceptionally low. You almost have to pay the government to hold your money.

Remember the “law of supply and demand”? When there is a huge market demand for something, isn’t that supposed to mean that more of that thing should be produced?

Shouldn’t government be supplying more bonds? Saying that the government should be producing more government bonds is another way of saying the government should borrow more. This is what it means when the government “makes” bonds to sell.

If the government borrowed more, it could use the proceeds to maintain and modernize our infrastructure (which has to be done at some point, no?) We could build out a modern energy grid, high-speed rail across the country, double the number of community colleges, expand scientific and health research… And of course doing those things would end up employing millions, and making wages go up.

And if everyone had the job they wanted and wages went up, wouldn’t that boost market demand, which would trigger business investment?

And if we did all of those things – high-speed rail, smart energy grid, modern infrastructure, expanded scientific research, expanded educational opportunity, wouldn’t it mean that our economy was positioned to prosper, and everyone’s lives would be better?

And wouldn’t a revitalized private economy mean that people didn’t need to park their money in government bonds, so the supply wouldn’t have to go up any more to meet demand? And wouldn’t all the tax revenue from that revitalized private economy and full employment pay off those bonds over time?

“Gubmint Spending”

But no, we can’t maintain, never mind modernize our infrastructure. We can’t expand educational opportunity. We can’t increase scientific and heath research. We can’t do any of those things. Because government spending. We have to cut back, cut back, cut back.

Conservatives say they are about the belief that markets are better than government (and, by implication, better than democracy). But when it comes down to it, they really are about one and only one thing: They hate government and want to strangle it, period – no matter the cost to our economy and our people.


This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

How Can The Earth Be Warming If It’s Snowing Outside?

Drudge and the rest of the Republican chorus are at it again today.

A headline at Drudge Report: Thousands March Through Snow Protesting ‘Global Warming’

Links to this at the Republican Daily Caller:

The “Gore effect” has struck again, this time forcing thousands of Canadian eco-activists to march through the snow over the weekend, rallying against global warming on a cold Quebec City day.

… But the “Gore effect” may, once again, blunt environmentalists’ message on global warming. The “Gore effect” is when cold weather appears as activists protest global warming. These Canadian groups aren’t the first to be hit by the “Gore effect” this year.

Considering how much of this is funded by oil companies, here’s a link to Conservative Is Not An Ideology – It Is Corruption for your reading pleasure.

A “Grand Alliance” To Save Our Public Postal Service

The Conservative/Wall Street/1 Percent/Republican anti-government strategy is to set government up to fail (usually by starving it of funding). Then they point to the resulting “crisis” they created and say it proves that government doesn’t work so we should “privatize” it – in other words, rig the system against We the People by handing our common wealth over to a few wealthy people to harvest for personal profit.

Now they’re coming for the U.S. Postal Service.

Manufacturing A Crisis

Republicans created the problems with the Postal Service. In 2006 Republicans in Congress required it to come up with $5.5 billion per year to pre-fund 75 years of retiree costs. This means the Postal Service has to set aside money now for employees who are not even born yet. No other government agency – and certainly no company – has to do this.

They also require the Postal Service to make a profit – or at least break even. But democratic government is supposed to provide services to We the People. It is not supposed to be about making a profit off of us. Yet Republicans say government should be “run like a business.” Then they hamstring it, preventing it from competing with businesses because they say it has too many advantages and any competition would be unfair.

From the post, “You Should Be Outraged By What Is Being Done To Our Postal Service”:

Here are a few things you need to know about the Postal Service “crisis”:

  • The Postal Service is the second largest employer in the United States after Walmart. But unlike Walmart, which gets away with paying so little that employees qualify for government assistance, the Postal Services is unionized, pays reasonable wages and benefits and receives no government subsidies.
  • Republicans have been pushing schemes to privatize the Postal Service since at least 1996. In 2006 Republicans in the Congress pushed through a requirement that the Postal Service pre-fund 75 years of retiree costs. The Postal Service has to pay now for employees who are not even born yet. No other government agency – and certainly no company – has to do this.
  • Unlike other government agencies (like the military) since 1970 the Postal Service is required to break even.
  • While required to break even the Postal Service has to deliver mail to areas that are unprofitable for private companies to operate in. A letter sent from a small town in Alaska is picked up and transported across the country to a farm in Maine for 46 cents. … [M]any people for one reason or another still send letters. In a democracy these people are supposed to count, too.
  • But along with requiring the Postal Service to break even, Congress has restricted the Service’s ability to raise rates, enter new lines of business or take other steps to help it raise revenue. … [W]hile detractors complain that the Postal Service is antiquated, inefficient and burdened by bureaucracy, the rules blocking the Postal Service from entering new lines of business do so because the Postal Service would have advantages over private companies. …

The Postal Service is a public service for We, the People, not a business. The Service is hamstrung by people who pretend it is supposed to compete and then won’t let it. They won’t help with taxpayer dollars and say it has to compete in the marketplace … they give it rules that no private company could survive. Then when it gets into trouble, say that government doesn’t work, start laying people off, selling off the public assets, and saying it has to be “privatized” …

Privatization Destroys People And Communities

Privatizing the various parts of the postal service will move the workforce from good union jobs to low-wage, no-or-low-benefit private-sector jobs. Aside from the effect this would have on employees and their families – not to mention the inexpensive delivery of mail to even the most remote locations – privatization also destroys the surrounding communities. The USPS is the country’s second largest employer, so in this case the surrounding communities are … all of the communities in the United States.

In “The Privatization Scam: Five Government Outsourcing Horror Stories,” I wrote about a study that showed that wage and benefit cuts resulting from privatization hurt communities, including declining retail sales, greater reliance on public assistance and a larger share of at-risk children in low-income families.

Fighting Back

Now the people who work for the Postal Service are fighting back. The American Postal Workers Union (APWU) is announcing “A Grand Alliance to Save Our Public Postal Service.” As the alliance’s new website explains,

“In the face of aggressive attacks, a wide range of national organizations have come together to create A Grand Alliance to Save Our Public Postal Service. These organizations are united in the demand that the public good must not be sacrificed for the sake of private investment and profit. A strong public Postal Service is our democratic right. The Alliance is fighting to protect and enhance vibrant public postal services now – and for many generations to come.”

This Grand Alliance consists of a large number of organizations (At least “63 religious coalitions, retiree organizations, educational and postal unions, lawmakers and progressive advocacy groups”, according to The Washington Post, and more being added as I write) as well as individuals (you) who sign the pledge to “support the fight to protect and enhance vibrant public postal services now—and for many generations to come.”

Two Years In The Making

At his swearing-in ceremony in November 2013, APWU President Mark Dimondstein pledged to build a “Grand Alliance” to save the postal system, saying,

“We must build a grand alliance between the people of this country and postal workers. We must mobilize our allies and their organizations, including seniors, retirees, civil rights organizations, veterans groups, the labor movement, community and faith-based organizations, the Occupy movement, and business groups in defense of America’s right to vibrant public postal services.”

Two years later, at a press conference Thursday, Dimondstein explained that this alliance is forming “because the postal service belongs to the people and it is in danger.” He said there are “two competing visions of the future” – privatizing vs. staying public – and that there will be a conversion from “living wage to low-wage jobs” if the Postal Service is privatized.

Dimondstein said that the Postal Service “is our democratic right” and that it can operate cost-effectively “if you get rid of the manufactured crisis created in Congress.”

Also at the press conference, Melanie Campbell, President and CEO of the National Coalition of Black Civil Participation and convener of Black Women’s Round Table Public Policy Network said, “this is a fight for the people, we the people.” She called the Postal Service “a national treasure” and said, “We’re here today to stand in solidarity … Our national postal offices have faithfully served communities.”

The mission of this Grand Alliance:

The United States Postal Service is a wonderful national treasure, enshrined in the Constitution and supported by the American people. Without any taxpayer funding, the USPS serves 150 million households and businesses each day, providing affordable, universal mail service to all – including rich and poor, rural and urban, without regard to age, nationality, race or gender.

The U.S. Postal Service belongs to “We, the People.” But the USPS and postal jobs are threatened by narrow monied interests aimed at undermining postal services and dismantling this great public institution.

Even some postal executives have been complicit in the drive toward the destruction of the Postal Service and ultimate privatization: They have slowed mail service, closed community based Post Offices and mail processing facilities, slashed hours of operations, tried ceaselessly to end six-day service as well as door to door delivery, and eliminated hundreds of thousands of living wage jobs.

Good postal jobs are vital to strong, healthy communities, and have provided equal opportunities and the foundation for financial stability for workers from all walks of life, including racial and ethnic minorities, women and veterans. Postal services are essential to commerce and bind together families, friends and loved ones. In the day of e-commerce, a public postal service is as relevant as ever.

Yet those corporate forces who want to privatize public services allege that curtailing postal services and eliminating jobs are necessary due to diminishing mail volume and “burdensome” union wages and benefits. Nothing could be further from the truth.

In reality, a Congressionally manufactured USPS “crisis” imposed an unfair crushing financial mandate on the Postal Service that no other government agency or private company is forced to bear. (The Postal Accountability and Enhancement Act of 2006 compels the USPS to pay approximately $5.5 billion per year to fund future retiree healthcare costs 75 years in advance.) Without this unreasonable burden, the USPS would have enjoyed an operating surplus of $600 million in 2013 and over $1.4 Billion in 2014.

The people of this country deserve great public postal services. We advocate expanded services, such as non-profit postal banking and other financial services. We call on the Postmaster General and Postal Board of Governors to strengthen and champion the institution.

The public good must not be sacrificed for the sake of private investment and profit. A strong public Postal Service is our democratic right. Join us in the fight to protect and enhance vibrant public postal services now – and for many generations to come.

Meghan Byrd contributed to this post.


This post originally appeared at Campaign for America’s Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. Sign up here for the CAF daily summary and/or for the Progress Breakfast.

Scariest Silly Right-Wing Propaganda Ever

My favorite scary but silly right-wing propaganda ever is still “Chevy Volt Runs Out Of Juice In Lincoln Tunnel.”

1) I say silly to contrast with deadly propaganda that tries to start wars, etc., or toxic conservative propaganda that tries to make people hate Muslims, blacks, Hispanic or poor or sick people, public schools, government, Europe (especially France), etc.

2) The Volt’s gas engine kicks in to charge the battery when it runs low — something that is hard to even notice. The car certainly didn’t stop in the tunnel or anything like that.

Second is the scare that “electric cars are a fire hazard.” As compared to cars that have big tanks full of gasoline!

Question: Why does conservative propaganda so often line up with things the generate profits for oil companies, Wall Street, or other billionaires?

Here’s What ’60 Minutes’ Should Have Reported About Infrastructure

“60 Minutes” ran a report Sunday, “Falling apart: America’s neglected infrastructure,” describing the seriousness and damage to the economy caused by our country’s crumbling infrastructure.

Here are a few choice quotes, but really you should click through and watch the whole thing (and then come back here):

  • “Except for the stimulus nothing much has happened. It is ‘just another example of political paralysis in Washington.’ “
  • “1 of every 9 bridges (70,000) is structurally deficient.”
  • “It all comes down to funding.”
  • “These all are tragedies waiting to happen.”
  • “32% of major roads in America are in poor condition.”
  • “It’s falling apart because we haven’t made the investment.”
  • “Public spending on infrastructure has fallen to its lowest level since 1947.”

How bad is the problem? The American Society of Civil Engineers (ASCE) issues a regular “report card” on “the condition and performance of the nation’s infrastructure.” The 2013 grade is D+ and the cost to get us back to normal is now at $3.6 trillion. (The longer we wait the more the cost increases.) Because of this, The World Economic Forum’s Global Competitiveness Report ranks the U.S. as 16th in the quality of its infrastructure.

Continue reading