Why is the US Postal Service Broke?
The stupidest law ever written and passed. And yes it was a Republican Controlled Congess at the time.
According to James O’Rourke, professor of management at the University of Notre Dame’s Mendoza College of Business, the postal ser...
news.nd.edu
But, according to
James O’Rourke, professor of management at the University of Notre Dame’s
Mendoza College of Business, the postal service’s money troubles have little to do with low prices and much more to do with a stifling congressional mandate.
“The Trump administration is mistaken about its claim that the postal service is losing money ‘every time they hand out a package for Amazon and other Internet companies,’” O’Rourke said. “The current agreement with Amazon, and presumably other online merchants, is, at the very least, a break-even arrangement. The reason the postal service is losing money is because of a congressionally mandated retirement healthcare funding program that no other government agency is required to observe. This creates a $6.5 billion annual shortfall that could easily be avoided.”
Legislators passed a law that made the USPS less competitive with the private sector.
www.bloomberg.com
Then there is the
Postal Accountability and Enhancement Act of 2006 (PAEA), which some have taken to calling "
the most insane law" ever passed by Congress. The law requires the Postal Service, which receives no taxpayer subsidies, to
prefund its retirees' health benefits up to the year 2056. This is a
$5 billion per year cost; it is a requirement that no other entity, private or public, has to make. If that doesn't meet the definition of insanity, I don't know what does. Without this obligation, the Post Office actually turns a profit.
Congress needs to fix the Postal Service. Their biggest issue isn't Trump, it's Congress. Screw Fedex and UPS lobbiest and all.