The problem with bloated central planning is that when austerity hits, the bloat goes away, and millions of government employees suddenly find themselves trying to enter the private sector, realizing they have absolutely no real competitive and marketable skills (more or less like investment bankers and hedge fund managers). And while America has yet to even remotely sniff austerity, the unemployment rate is already set to spike, after the USPS just announced it was preparing to close 3,653 out of its 32,000 total post office sites. Per UPI: "The U.S. Postal Service is expected to announce a plan to close 3,653 post offices, mostly in small communities, in a cost-cutting measure, officials said. A USPS spokeswoman said the post offices were chosen because they get the "least amount of foot traffic and retail sales," The Wall Street Journal reported Monday." Trust the bureaucrats to try spinning this bad news as good: "They also were selected because there may be local businesses that could provide some postal services to the community, spokeswoman Sue Brennan said." Well by that logic there are private businesses that cover every aspect of the government's "job" much better, and much more efficiently, up to and including that of the Fed (sorry, that already is private). Does that mean we should outsource every aspect of the bloated centrally planned economy that America has become? Of course the answer is yes, but that just does not jive with the current iteration of kleptofascist socialism.
The list of the closures, amounting to about 11 percent of the USPS' post offices nationwide, will be made public Tuesday by Postmaster General Patrick Donahoe,
The Postal Regulatory Commission would have to approve the widespread closings, as the USPS prepares to file a request for a "national change of service," Brennan said.
Donahoe also will announce "a replacement strategy" involving third-party retailers, she said.
"If you're a community and there is a local convenience store, for example, we might be reaching out to these organizations to see if they would be interested in providing limited postal service for the community that might be affected," Brennan said.
So between corporate and now public sector layoffs, expect the unemployment rate to resume climbing steadily to double digits, hitting it some time in Q4, at which point QE3 will be inevitable, as Goldman predicted yesterday.