News today that’s yet another example of the redistribution/welfare state crowding out good government. Yes, there is such a thing as good government, like postal delivery, law enforcement, education, environmental protection, national defense, space exploration, etc.
The U.S. postal service is threatening to suspend delivery because it can’t make a $5.5 billion payment to its retirees.
Wealth redistribution from working people to retirees is having a severe impact on the fabric of our society, in this case that age-old institution of postal delivery. True, we probably could get by without postal delivery these days thanks to electronic communications and private delivery companies like UPS and FedEx. But even so, the postal service is yet another conduit for the redistribution that’s crowding out everything else.
Just as it was a big mistake to set up Social Security as a spending program rather than a savings program, it was a big mistake to never have transitioned the postal service’s pension system into a savings program, in the same way that private companies are and have been converting their pension plans to 401(k)-type savings plans. But the postal system is part of the government, where unions have a stranglehold on things, so it’s hard to reform anything there.