Sunday, June 29, 2014

Imagine the cost if UPS of Fed-Ex did this


The Constitutionally mandated US Postal Service, as part of its mandate, reaches almost every citizen in the country. Despite some formidable obstacles in the way. One service in Alaska is indicative of their reach and their cost.
The U.S. Postal Service paid to ship the items on a turboprop bush plane to this small settlement of Yupik Indians on Alaska’s western edge. The Bells brought them home on the back of their all-terrain vehicle from Hooper Bay’s only grocery store. The 12-pack of Coke alone cost the Postal Service $21 to get here.

Under a federal program exclusive to Alaska, the Postal Service is responsible for shipping more than 100 million pounds a year of apples, frozen meat, dog food, diapers and countless other consumer items to off-road villages in the sparsely populated outposts known as the bush. Over three decades acting as freight forwarder, the agency has lost $2.5 billion.

In many ways, the Alaska Bypass, as it’s called, keeps Hooper Bay and 100 other isolated villages in rural Alaska afloat. But groceries do not come cheap for Royala Bell, 43, and her neighbors, most of whom, like her family, survive on food stamps and federal subsidies.

“I think the food is too, too high,” the slight Yupik woman said of the prices at the Alaska Commercial store here, stretching her hands wide like an accordion. “It takes about $200 for a little tiny amount of groceries.”

Rural Alaskans are not the only ones paying a steep price. The system cost the Postal Service $77.5 million last year, agency officials said, with ordinary stamp-buying customers covering the tab, while a long line of commercial interests here benefited, from the airline and shipping industries to rural grocery chains.

Retailers pay the Postal Service about half of what it would cost them to ship the goods commercially; the subsidy allows them to charge a hefty markup on a can of Coke, for example, in some cases 30 percent or more. The agency, by law, must pay private air carriers well above market rates in the only corner of the country where airline prices are still regulated.

In the name of families such as the Bells, the late senator Ted Stevens (R-Alaska) pushed an earmark through Congress 33 years ago aimed at helping his constituents back home. But today, the Postal Service is going broke. On Capitol Hill, this is the kind of federal spending lawmakers in Washington have said they will swear off in a time of austerity.
This is why the USPS should be a federally funded service and not a quasi-private company. No private organization would even think about bringing anything to these parts of Alaska.

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