The critical analysis of the bypass mail program asserts that rural residents are not seeing the benefits they should be from the program.
The Inspector General's office, which serves as an ombudsman of sorts for the post office, cites potato chip prices as an example.
In Anchorage, a 14-ounce bag of Ruffles was selling for $4.29 a year ago in October. In Bethel, the same bag was marked at $9.99 in both of the stores in Bethel, which is a bypass mail hub.
If the stores in Bethel shipped potato chips as part of a 1,000-pound delivery, the cost of getting the chips to Bethel would be as low as 35 cents, the report says.
The Bethel stores are not paying the Anchorage retail price, so the markup is far more than 100 percent, the IG said.
"Other examples abound. Anchorage residents pay $3.49 for Colgate toothpaste (5.8 ounces), which might cost as little as 14 cents to ship, but Bethel residents pay $4.59 at the local stores. Similarly, Bethel merchants mark up a large tin of coffee by 100 percent over costs. While there are limited exceptions to this phenomenon — milk in Bethel costs less than retail milk in Anchorage — the overall trend of extraordinarily high prices at rural merchants is supported by statistics from the Alaska Department of Labor and Workforce Development, which reports prices for a market basket of groceries.
"In small remote villages serviced by Alaska Bypass, the grocery prices seem to bear little relationship to the cost of getting the products there and may include a variety of other factors."
The report says that a "wide variety" of commercial interests are the big beneficiaries of bypass mail, including airlines and stores.
There used to be a time rural Alaskans were self sufficient. That day is over. Now, they are like everywhere else in Alaska - living off government. But just to be clear: why is it the responsibility of the federal income tax payer and State tax payers (oil companies) to subsidize the residency choice of every Alaskan? If me and 13 buddies want to start a rural village or city in the middle of nowhere, why is it every one else's responsibility to ensure that I have an energy-efficient home, access to health care, power, and subsidized shipping and transportation to my chosen location?
There are no jobs in many of these areas because there is nothing there. Why are we propping them up?
Its ironic that you mentioned high cost of insurance when you consider that insurance companies by law are exempt from the anti trust law that keeps companies from meeting in private and set prices or policies that give them a monopoly. Yes thats right insurance companies can legally meet in private and SET prices.
So your decrying regulations is bogus...we really need MORE regulations of these crooks and the will to enforce them.
Answer, thousands upon thousands of govt regulations, high fuel costs, the price of insurance is astronomical, and taxes.
So whats your solution twain? Price controls, central planning, more regulations and taxes? What?
One of the people that think those living in the bush eats junk food is the Inspector General's office. But, the Inspector General's office also thinks they buy tooth paste.
Can Inspector General's office explain why I pay $0.59 for a bottle of water at Sam's Club, $1.59 for a bottle of water at my local convenience store, and $2.59 at the Airport ?
Is it the shipping ?
Nope. It's whatever the market will bear.
I sure wish liberals would get some economic educating; they should all be required to be in business for a while, so they understand reality a little. But in the end, they have no logic or facts, so they just call people names, like they were in grade school.
It has nothing to do with liberal or conservative when you look at the numbers. You can take the retail cost of an item in Anchorage add the air freight cost and determine the landed in village cost. Now the retail cost in Anchorage includes a profit for the retailer. While near wholesale price is what these village stores buy for. For none of these stores simply buy off the shelf and pay full retail. Many good in these villages are over twice what the item cost plus freight. And it not all due to higher wages and utilities.
All of these costs are added on to the retail price.
The inspector general does not have clue re the actual cost of doing business and expects the stores have cost plus 10% mark up in his Washington DC dream world of Utopian socialism.
Also, it's his job to rationalize elimination of the program to save money to continue paying extravagant wages and employee benefits to Post Office management and staff. A $70 million savings is zip out of $9 billion dollar loss.
This is all just picking at low hanging fruit while ignoring golden union contracts beyond his reach and power to pick.
PSWhat's the markup on a Stamp?
Got to start somewhere... Bring a ladder, we'll start higher up in the tree.
Ever heard of supply and demand? How about class envy? Hope and Change? Any of that ring a bell for you?
By-pass mail is the biggest ripoff ever conceived by a few politicains who used the USPS to get them re-elected. It sound so nice and human to provide mail to these poor individuals living in a remote location where they can not make it without help. I'm sure the only problem passing the legislation was finding out what give-a-ways in other states our Alaskan delegates had to support to get this implemented. For nothing in DC get through without shaping my vote for your support. I believe this mess is a legacy of Uncle Ted's making.
What's your next irrelevant suggestion?