Thursday, September 30, 2010

Corrections to Yesterday's post

I have made two changes to yesterday's post, The Postal Service Should Default on Its Retiree Health Care Obligation from the original version to correct errors.   Accounts payable replaced accounts receivble in the first paragraph.  Both are bad but as the USPS collects revenue up front it has minimal accounts receivable.  It does have substantial accounts payable and other liabilities that need to be paid for which it does not have needed revenue.  The paragraph on geographically oriented rates would was changed to correct an error regarding rates to high density areas.   Rates there would go down not up.  Geographically oriented rates are used outside of the US by postal operators for providing only last mile services as a means to prevent cream skimming either in terms of creating a competing delivery service or exploiting anomalies in the rate structure as compared to the cost structure in ways that would cause the Post to handle substantial volumes below costs

I apologize for the errors and whatever confusion they may have created.

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