Bad News Gets Worse for U.S. Postal Service: ‘BradCast’ 5/6/2020

Guest: American Prospect's David Dayen; Also: TX Guv knew deaths would spike after reopening, did it anyway; Judge reinstates NY Dem Prez primary; MT's Bullock leading U.S. Senate race...

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On today’s BradCast: We start and finish today with some good news. Everything else inside that sandwich may be a different matter. [Audio link to full show is posted below.]

First up, a federal judge has ordered the New York State Board of Elections to reinstate all candidates to the ballot who have not asked to be removed for the state’s June 23 Democratic Presidential primary. The order is in response to a lawsuit filed by former candidate Andrew Yang following the state Board’s effective cancellation of the primary — ostensibly to lower polling place turnout to make it safer voters. The move last week angered the Bernie Sanders campaign, his supporters and, yes, Yang. That seemingly good news for voters is tempered by the fact that the NY Board says they plan to appeal the decision.

In less good news today, the coronavirus infection and death rate in Texas has — completely predictably — spiked with thousands of new cases after Republican Gov. Greg Abbott lifted restrictions in the Lone Star State last week for businesses. Even more disturbingly, Abbott knew that it would happen, but did it anyway. An audio recording of a private phone conversation of Abbott speaking to other lawmakers released on Tuesday appears to contradict the Governor’s public statements about what would happen after the state reopened all businesses.

Our guest today, The American Prospect’s Executive Editor and investigative financial journalist DAVID DAYEN is not happy with public officials who are standing by while the nation is prematurely reopened for business, even as the COVID-19 infection and death rate continues to increase — not decrease — across the country. “Anyone working in the federal government on pandemic response right now who doesn’t want to be known historically as a mass murderer should probably resign,” he recently wrote in one of his must-read daily “Unsanitized” columns.

Dayen speaks to that (“The administration has pretty clearly signaled they are done with pandemic response. They’re over it. … This is a prescription for tens of thousands of people unnecessarily dying. And we should be really clear about that.”); the disastrous roll-out of the federal government’s Paycheck Protection Program (PPP), meant to provide short-term relief to small businesses; the far smoother roll-outs of big bailouts for huge corporations; how the federal coronavirus financial relief response compares to the programs implemented in response to the 2008 mortgage crisis and Great Recession (about which Dayen wrote an award-winning book); and his scoop today regarding the U.S. Postal Service.

As we’ve discussed on the show previously, the USPS is in trouble, thanks to the crash in postal deliveries with so many businesses shut down. The Post Office does not receive any tax-payer dollars. It runs solely on the postage it sells as it delivers to every address in the nation, six days a week. It is also responsible for delivering absentee ballots in all 50 states amid the ongoing global pandemic and will be crucial to our ability to hold something that resembles a legitimate Presidential election this November. But now the Service has said they may have to stop operating entirely as early as June without an infusion of cash.

Republicans in Congress and Donald Trump in the White House have refused, so far, to provide a bailout to the Postal Service as they have for thousands of other private companies. But Congress did approve a $10 billion extension of credit for the USPS, to allow them to borrow more money to weather the crisis. However, the Treasury Department is holding up the increase in the USPS credit limit in hopes of forcing a bunch of conditions on them first.

“The Treasury Department, which offers that line of credit, has signaled that they will use that to make major policy changes,” Dayen explains. “In other words, you want that $10 billion? You’re going to have to pay the Piper. You’re going to have to bust your unions, you’re going to have to get some give backs on pay and benefits. You’re going to have to do what we want in terms of package delivery. Specifically, making sure Amazon pays through the nose — this is the thing Donald Trump is obsessed with, because he hates Jeff Bezos — and you’re going to have to institute a bunch of policy changes and give us some decision-making authority on personnel, including the Postmaster General. And that’s just to get the loan. … It’s really an imposition into the authority of the Postal Service, which is an independent entity that is self-sufficient.”

With that explained, Dayen’s scoop today is that the Administration’s strong-arming appears to be working. That insight is based on the recently revealed resignation from the USPS Board of Governors by David C. Williams, the former longtime Inspector General and the Democratic appointee to the Board. A longtime champion of the Postal Service (and its return to postal banking — which could, on its own, save the Service, as we also discuss), Williams’ departure, Dayen reports, is a very bad sign that the Republican appointees who control the Board are on the precipice of winning this battle.

What it may mean for the near future of the USPS and its union workers is ominous. All of this is made even worse because Democrats have now given away much, if not all, of their negotiating leverage in Congress to include a bailout for the USPS by kicking the can down the road in earlier emergency relief bills, even as Republicans got just about everything they wanted already in those measures. All and all, this will not be good for the American people in a multitude of ways.

Finally, we close with some slightly better news as promised. According to a new poll in Montana, the state’s very popular Democratic Governor Steve Bullock is up by 6 points (46% to 39%) at the moment in his U.S. Senate race against the Montana’s GOP incumbent Sen. Steve Daines. A once-longshot win for Democrats in the U.S. Senate, flipping a seat in Montana this year would go a long way towards flipping control of the upper chamber of Congress from red to blue this November. The state which went for Trump by more than 20 points in 2016 (on the same statewide ballot where Bullock won reelection the same year) is also now trending toward Biden, as the same poll from Montana State University finds Trump with only a 5 point lead (45% to 40%) over the former Vice President right now. Of course, it’s only May. But we’ll take our encouraging news where ever we can find it these days…

The BradCast with Brad Friedman 5/6/2020
Bad News Gets Worse for U.S. Postal Service: ‘BradCast’ 5/6/2020  |  Guest: American Prospect's David Dayen; Also: TX Guv knew deaths would spike after reopening, did it anyway; Judge reinstates NY Dem Prez primary; MT's Bullock leading U.S. Senate race...   · · · · ·   Bad News Gets Worse for U.S. Postal Service: ‘BradCast’ 5/6/2020  |  Guest: American Prospect's David Dayen; Also: TX Guv knew deaths would spike after reopening, did it anyway; Judge reinstates NY Dem Prez primary; MT's Bullock leading U.S. Senate race...
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