(Maybe it falls under "Fake News", and maybe not)

Have had my fill for a long time.

And I don't normally waste more of my time once I realize it is such, but this one I want to use as an example.

I only hope that others will start rejecting these stories and the "messages" (or "contamination of the brain") they cause.


It is not until the 7th paragraph that the dishonesty of the headline and the previous paragraphs leave out the truth of the matter.

This might seem like a small and insignificant thing, but it is far from that. It works to erode truthfulness, it becomes habit and pattern and deliberatly re-wires people's thinkning into accepting it as a norm while slowly interjecting more damaging deciets.



Here is the headline and the seventh paragraph from the Wall Street Journal "story".

Why the Post Office Gives Amazon Special Delivery
"A Citigroup analysis finds each box gets a $1.46 subsidy. It’s like a gift card from Uncle Sam."


"...In 2007 the Postal Service and its regulator determined that, at a minimum, 5.5% of the agency’s fixed costs must be allocated to packages and similar products. A decade later, around 25% of its revenue comes from packages, but their share of fixed costs has not kept pace. First-class mail effectively subsidizes the national network, and the packages get a free ride. An April analysis from Citigroup estimates that if costs were fairly allocated, on average parcels would cost $1.46 more to deliver. It is as if every Amazon box comes with a dollar or two stapled to the packing slip—a gift card from Uncle Sam. ..."

https://www.wsj.com/articles/w...-delivery-1499987531



"It is as if..." is an anology, not a truth of fact.

There are very few concepts in business more "flexible" than cost accounting.

quote:

Originally posted by JALLEN:
There are very few concepts in business more "flexible" than cost accounting.

That's why "Cost Accounting 308" in college was nicknamed "Cost Accounting LCS" by the professor who taught it. As in "Lie, Cheat and Steal."

I imagine that if one wanted to do the work, you could show, by generally accepted accounting principles, that the Post Office has been overcharging Amazon by $2.13 per shipment, or by $1.83, or by $3.17, pick the one you like.

This isn't exactly "fake" news in the classic sense, merely more ignorant news.

It's not about the accounting, it's about the wording of the story.

It can't be that subtle that the point is missed.

Or maybe it simply, is.

quote:

Originally posted by sigmonkey:
It's not about the accounting, it's about the wording of the story.

It can't be that subtle that the point is missed.

Or maybe it simply, is.

It seems like a hit piece on Amazon.

quote:

An April analysis from Citigroup estimates that if costs were fairly allocated, on average parcels would cost $1.46 more to deliver.

My take on this line is that anyone using USPS is getting a break on the actual cost and not just Amazon.

Although, they certainly would benefit from the large volume of shipments they generate.

In simple terms, they make shit up. You could write a thick book just about the journalistic deceits of the past few years. (Maybe somebody has.) And it's not only what they say, but what they don't say, or even suppress, like the wave of black-on-white violence that only Colin Flaherty has reported.

This Russia obsession with Trump is a farcical example of their dogged dishonesty. Thing is, everybody knows now what liars and propagandists they are. They have, in effect, committed suicide. Well, assisted suicide. Thank you, Donald Trump.

quote:

Originally posted by JALLEN:
There are very few concepts in business more "flexible" than cost accounting.

Anyone here teach cost accounting in college??

I get sigmonkey's point that there was no 'gift' involved - the implication of the headline is that it's free (a gift) and then the details mention that it's not free - just costs less that some methods of allocating fixed costs would imply that it 'costs' USPS to do the deliveries.

Noted for reference: Citigroup (the analyst coming up with these numbers) does not get invited into the room when USPS and Amazon negotiate rates. As JALLEN points out, one can only imagine the creative 'cost accounting' that goes on in support of those negotiations.

quote:

Originally posted by sigmonkey:...."...In 2007 the Postal Service and its regulator determined that, at a minimum, 5.5% of the agency’s fixed costs must be allocated to packages and similar products. A decade later, around 25% of its revenue comes from packages, but their share of fixed costs has not kept pace. First-class mail effectively subsidizes the national network, and the packages get a free ride. An April analysis from Citigroup estimates that if costs were fairly allocated, on average parcels would cost $1.46 more to deliver. It is as if every Amazon box comes with a dollar or two stapled to the packing slip—a gift card from Uncle Sam. ..."...

I guess I would like to see the USPS trial balance, fixed vs variable spreadsheet, calcs comparing the various service rates to the variable, allocated fixed, and total costs of those services. I would want to know if Amazon has negotiated any diff treatment than other shippers receive.

I think Mark Twain sums it up nicely.

The Opinion page is now the front page of the paper. It has been that way in television since the birth of CNN in the mid nineties. There was an interesting special I saw last week, suggesting that factual television news reporting was ended because of the amount of viewers tuned in to the OJ Simpson trial. They interviewed news anchors at the time discussing the issue. It preempted the soap operas at the time.

quote:

Originally posted by Scoutmaster:
I would want to know if Amazon has negotiated any diff treatment than other shippers receive.

Given their size and economic power, I would assume they can and do hire the best negotiators to argue their side of it. Given their volume, they are a nice shipper to get for your services. I'd be pretty shocked to learn they didn't get about the best deal of any shipper.

quote:

I think Mark Twain sums it up nicely.

I've seen the quote many times, but never a date on it. Things don't change quickly in the news business. The news does, but the standards remain as low as ever.

quote:

Originally posted by Scoutmaster:
I would want to know if Amazon has negotiated any diff treatment than other shippers receive.

Personal experience - Amazon Sunday delivery via USPS is the norm here. Never gotten any other USPS action on mail/packages from other shippers on Sundays.

Also, re: negotiated pricing. Quick Google-fu and one example from 2016

quote:

Amazon told sellers on Monday it had negotiated a deal with the USPS so they will see no rate change on the cost of Priority Mail shipping, which will remain at 2015 rates. The deal is unprecedented, since Priority Mail rates increased 9.8 percent on average as of Sunday (January 17, 2016) retail - and an increase of 9.4 percent for Commercial Base pricing, on average.

The article states it is illegal for the USPS too ship items below its actual cost. The USPS is shipping Amazon packages below its actual cost using its Government Mandated Monopoly on 1st Class Mail to offset the loss.

Let Amazon live or die on its own dime.

Looks like everyone swallowed the blue pill. Be careful Neo, Agent Smith is close.

Bait and switch journalism has become the norm and the masses have accepted it allowing it to lead them to the wrong conclusions.

Tread lightly lest yee be punished for thoughtcrime.

It is a daily flood. They say "The Russians" implying the Russian government, when in fact, it is a Russian. Or a US citizen who immigrated and naturalized. It's like saying "The Nigerians" about mail fraud scams. Critical thinking skills are no longer taught, so the snowflakes suck this shit in like candy and spit it back out.

quote:

Originally posted by braillediver:
The article states it is illegal for the USPS too ship items below its actual cost. The USPS is shipping Amazon packages below its actual cost using its Government Mandated Monopoly on 1st Class Mail to offset the loss.

Let Amazon live or die on its own dime.

The post office can lose money on every transaction. They make it up in volume... and with the support of the US taxpayer.

quote:

Originally posted by braillediver:
The article states it is illegal for the USPS too ship items below its actual cost. The USPS is shipping Amazon packages below its actual cost using its Government Mandated Monopoly on 1st Class Mail to offset the loss.

Let Amazon live or die on its own dime.

That may be what the statute says but I defy anyone to determine with certitude what "actual cost" is.

On the other hand, it is hard to say it is losing money on Amazon business. Maybe it is like the auto industry model. They lose money on every sale, but make it up in volume.

The claim has been as far as I can remember that first class is subsidized by those infernal flyers.

I have no issue going to all UPS or FedEx deliveries, even if it cost more.

They deliver most of my stuff anyway.

Let the USPS live or die on it's own, not propped up by the taxpayer.

Just like the US has a "do not call list", they should have a "do not mail list" for USPS. Quit delivering all that shit mail that I simply tear in half and throw away even before bringing it into the house.