Nationwide protests erupted Sunday, organized by the National Association of Letter Carriers (NALC), opposing potential privatization or restructuring of the United States Postal Service (USPS). These actions follow plans by Postmaster General Louis DeJoy to cut 10,000 jobs and collaboration with Elon Musk’s Department of Government Efficiency, sparking concerns about service disruptions and job losses. Lawmakers joined the rallies, denouncing the proposals as unconstitutional and detrimental to the American public, particularly those in rural areas. The NALC emphasized the USPS’s constitutional mandate and its critical role in the national economy.
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A proposed privatization of the United States Postal Service (USPS), spearheaded by the Trump administration and facilitated by Elon Musk’s involvement, threatens to generate $81 billion in profit for Wall Street while significantly increasing postage prices for consumers. This plan, revealed in a Wells Fargo Securities study, would involve selling off USPS assets and potentially jeopardizing the jobs of 640,000 unionized workers. The APWU and other postal worker unions are organizing nationwide rallies and actively fighting against this privatization effort, citing the detrimental impact on both workers and the public. The unions are prepared to take legal action to prevent the release of sensitive employee data.
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During a Morgan Stanley conference, Elon Musk advocated for the privatization of both Amtrak and the USPS, citing the inadequacy of America’s passenger rail system compared to other countries. He believes that privatizing these organizations would improve their efficiency, echoing similar sentiments recently expressed by President Trump regarding the USPS. Musk acknowledged the need for congressional approval for such a move, though he offered no concrete plans for achieving privatization. Despite his informal role as de facto leader of the White House’s DOGE, he downplayed his involvement, referring to himself as “tech support.”
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Postmaster General Louis DeJoy announced his intention to resign, initiating a search for his successor. His departure comes midway through his 10-year reform plan, which aims to improve the Postal Service’s financial viability. Despite recent positive financial results, significant challenges remain, including a projected $6.9 billion net loss for fiscal year 2025 and ongoing resistance to reforms. DeJoy advocates for a successor committed to completing his reform plan, which includes substantial cost reductions and revenue growth initiatives.
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This article examines President-elect Trump’s consideration of privatizing the United States Postal Service (USPS), a move deemed impractical and potentially harmful. The USPS’s universal service mandate ensures nationwide mail delivery, a service no private company would profitably undertake, especially in rural areas. Privatization would jeopardize hundreds of thousands of unionized jobs, many of which have historically provided upward mobility for minority communities, and negatively impact numerous businesses reliant on affordable, widespread mail service. This action contradicts Trump’s populist rhetoric concerning job preservation and support for working-class Americans.
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President-elect Trump is reportedly considering privatizing the U.S. Postal Service, a move opposed by progressives. Discussions regarding this privatization, involving Trump and his transition team, cite the USPS’s financial losses as justification. Critics argue that this privatization effort is driven by a broader hostility towards public services and would disregard the public’s strong support for the Postal Service. Furthermore, they point out that the USPS’s financial struggles are partly due to burdensome pre-funding mandates, not inherent inefficiency.
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President Trump, citing the USPS’s $9.5 billion fiscal year loss and substantial liabilities, has expressed interest in privatization. Discussions with his commerce secretary nominee, Howard Lutnick, indicate a potential overhaul impacting hundreds of thousands of federal employees and potentially disrupting shipping and supply chains. This plan, though lacking specifics, follows previous conflicts with the agency, including attempts to shift key functions to the Treasury Department. Despite its recent financial struggles, the USPS remains a highly-regarded institution with a long history and a recent success in handling mail-in ballots.
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Trump eyes privatizing the U.S. Postal Service, citing its financial losses. This isn’t a new idea, and it’s fueled by a long-standing debate about the Postal Service’s role in a modern economy. The argument often centers around the fact that it’s not a for-profit entity, and therefore shouldn’t be judged solely on its financial performance in the same way a private corporation would be. Many argue that the USPS provides a vital service to the entire nation, and that its worth extends far beyond simple profitability.
The claim of financial losses is often used as justification for privatization. However, a significant portion of these losses can be attributed to a Congressional mandate from 2006 that required the Postal Service to pre-fund its retiree health care benefits 75 years in advance—a unique and exceptionally burdensome requirement not imposed on any other entity.… Continue reading