I hope everybody has a nice and relaxing Labor Day weekend to get ready for an insanely busy rest of the year. Congress still has to pass appropriations before September 30. That won’t happen, so they will have to pass a continuing resolution (CR) to keep the government funded. Any CR must be clean and not have any policy riders or excessive spending. We’ll keep an eye on that as it unfolds. Be sure to read Ross’s latest op-ed ([link removed]) on why we need a bipartisan convention to address spending.

Profile in Courage – Louis DeJoy

Last week, the House of Representatives held a hearing with Postmaster General (PMG) Louis DeJoy and missed an excellent opportunity to try and fix the United States Postal Service (USPS). For decades, the USPS has experienced rising costs and declining service. America’s mail carrier lost nearly $9 billion last year, and unfunded liabilities now total more than $160 billion. For all this red ink, the USPS has yet to deliver a ten-year business plan (which was supposed to be delivered last summer) or turn around sliding on-time percentages. Fortunately, PMG DeJoy values reform and operational improvements over excuse-making and complacency. DeJoy is an outsider, having worked his way up in the private sector for decades while doing business with the USPS. His ample experience gives him unique insight into the failings of the struggling agency, which he is determined to fix regardless of the countless personal attacks directed at him. And for standing firm in his resolve to turn around the
USPS, we decided to name PMG DeJoy the August Profile in Courage.

Louis DeJoy’s appointment as PMG marks a sharp departure from the postal status-quo because DeJoy is the first PMG in more than 20 years without experience working at the USPS. Instead of ascending the ranks at the USPS like his predecessors, DeJoy made a name for himself in the business world. His remarkable career took off in 1983 when DeJoy became the CEO and chairman of a then-obscure company called New Breed Logistics. When the future PMG first took the helm of the company, New Breed was a small, regional operation that employed just ten workers. By the time that New Breed was acquired by XPO Logistics in 2014, the company boasted a workforce of nearly 7,000 spread out over more than 70 locations across the country. Post-acquisition, DeJoy became CEO of XPO’s supply chain business in North America and subsequently served on XPO’s board of directors from 2015 to 2018.

Since assuming the role of Postmaster General on June 15, DeJoy has hit the ground running in reforming the USPS. In response to reports by the Inspector General that rampant overtime by postal workers was leading to runaway costs, DeJoy forbade ([link removed]) mail deliveries from going out late. If mail was processed late and sent to post offices for deliveries late in the day, post offices were instructed to hold the mail until the next day instead of running up overtime costs. These reforms, coupled with the streamlining of processing operations, will break the current vicious cycle of late deliveries while saving taxpayers more than $200 million per year in unnecessary trips. There’s been no shortage of misinformation about a purported conspiracy to destroy America’s mail carrier, and false claims are a dime-a-dozen. Conspiracy allegations reached fever pitch amid reports that
DeJoy was ordering the removal of mail collection boxes and sorting machines, even though these removals were longstanding postal policy. As a result of poorly placed collection boxes and unnecessary sorting machines, manpower was being directed away from critical priorities such as handling election mail and medication deliveries. The false claims continued and DeJoy was forced to answer mostly nonsensical questions before the Senate and House on August 21 and 24 respectively.

Despite the abuse heaped on DeJoy by lawmakers, pundits, and famed musicians, the embattled PMG will continue to lead the charge in reforming the USPS. Efficiency and pricing reforms will save taxpayers a pretty penny, while maintaining the integrity of voting across the country. And for his tireless efforts, Postmaster General DeJoy is truly a Profile in Courage.

The Cost of Rioting

It is unacceptable what happened to George Floyd on May 25^th. It was a senseless death. It was also unacceptable what happened to Breonna Taylor and many other black citizens whose lives have been cut short by excessive force used by police. The reaction to Floyd’s death included mostly peaceful protests as the nation tried to figure out how to solve the problems caused by rogue police officers. Unfortunately, a small contingency of these protestors has committed themselves to wanton violence and property destruction. Some have disturbingly attempted to justify this reckless behavior, claiming that “property is replaceable” and insurance will protect store owners from the destruction of their livelihoods. In reality, store owners, entrepreneurs, and taxpayers across the country bear the brunt of these costs.

During a recent spate of riots in Minneapolis, looters broke into a Vietnamese family-owned restaurant and promptly tore down a picture of the family “that was on the wall that represented generations of work” before ransacking the establishment. Owned by African American entrepreneur Leon Scott, Philadelphia-based Silver Legends had their windows broken in and their cash register and merchandise stolen. And there are many more examples of minority-owned businesses that have fallen victim to rioting and looting. Some insist that this destruction is manageable because of well-heeled insurers ready to promptly pay out claims to store owners with policies. An Indian American owned car dealership in Kenosha, Wisconsin has been spurned by its insurers after suffering significant destruction following the Blake shooting. As a result, the owners of the dealership had to set up a GoFundMe to manage costs. Meanwhile, small shops and restaurants in Chicago have yet to receive insurance payouts more
than two months after the initial wave of rioting and looting. Chicago menswear storeowner Scott Shapiro points out that business owners are afraid to file claims for fear of increased insurance premiums.

And in an environment where business owners are reluctant to file and insurers are reluctant to pay out, taxpayers inevitably foot the bill for the costs of property destruction. Already, lawmakers on Capitol Hill are considering expanding the Paycheck Protection Program to include looting damage as an eligible expense for loan forgiveness. The small business assistance program has already cost federal taxpayers more than $600 billion, and rioting-related relief will likely further increase program expenses. Local taxpayers have also paid dearly for the reckless conflagration and destruction of businesses. Minneapolis – the ground zero of the May and June riots – has gone more than $500 million in the red between emergency response, clean-up, repair, and police costs. In the first two weeks of rioting in May and June, New York City taxpayers spent $115 million in police overtime costs. Redirecting and reducing police funding may be a laudable goal, but it’s difficult to realize that goal
when taxpayers have to pay bloated police overtime bills to deal with rioting.

Rioters have no place in the movement to make America a fairer, better place. As long as the riots and needless destruction of property continues, the economy, small businesses, and taxpayers will continue to suffer. Protesting injustice is a noble American tradition that should not include riots.

Blogs:

Monday: Profile in Courage: Postmaster General Louis DeJoy ([link removed])

Tuesday: Time for a bipartisan convention to cut spending ([link removed])

Wednesday: FDA must not overregulate COVID-19 vaccine approval, millions of lives depend on it ([link removed])

Thursday: Critics hope CARES Act broadband funds go toward the truly unserved ([link removed])

Friday: Time for Congress to Get Back to Work ([link removed])


Media:

August 28, 2020: The Livingston Parish News (Denham Springs, La.) ran TPA’s op-ed, “Accidental transparency shows fiscal folly of taxpayer-funded broadband.”

August 30, 2020: Issues & Insights ran TPA’s op-ed, “Like FCC Chairman Pai, Postmaster General DeJoy Must Double Down on Reform Agenda.”

August 31, 2020: WBFF (Fox, Baltimore) interviewed me about the Hatch Act.

September 1, 2020: The Center Square ran TPA’s op-ed, “Rioting bad for everybody, including the BLM movement.”

September 2, 2020: Townhall ran TPA’s op-ed, “The Census Needs a Makeover.”

September 3, 2020: The Galion Inquirer (Gilead, Ohio) ran TPA’s op-ed, “Nation needs a bipartisan effort to reduce spending.”

September 3, 2020: WBFF (Fox, Baltimore) interviewed me about Baltimore City employee salaries.

September 3, 2020: I appeared on “The Jimmy Barrett Show” (KPRC 950 AM and KTRH 740 AM; Houston, Tex.) to talk about the cost of recent riots.

September 3, 2020: I appeared on WBOB Radio (600 AM and 101 FM; Jacksonville, Fla.) to talk about the minimum wage and the economy.

September 4, 2020: WBFF (Fox, Baltimore) interviewed me about the latest unemployment numbers.

September 4, 2020: TPA Vice President of Policy Ross Marchand appeared on “The Joe Thomas Show” (WCHV 1260 AM and 107.5 FM; Charlottesville, Va.) to talk about federal spending trends.

September 4, 2020: Ross appeared on “The Steve Gruber Show” (WJIM 1240; Grand Rapids, Mich.) to talk about the cost of recent riots.

Have a great weekend, stay safe, and as always, thanks for your continued support.

Best,
David Williams
President
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org ([link removed])

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