How the U.S. Post Office got into a financial black hole

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If the United States Postal Service was a private business, it would have ranked 44th on the 2019 Forbes 500 list. It's also a public service. That means its goal isn't to meet its bottom line, but to fulfill its duty to provide affordable and reliable mail service in the United States. So how did the Postal Service's finances get into such a dire situation?

The institution wasn't spared from the impact of the Covid-19 pandemic. Thanks to a

from the U.S. Treasury Department and better-than-expected sales, the U.S. Postal Service has enough cash to get through mid-2021.it's on a path to financial collapse, with unknown consequences. "It's an organization that provides a public service, a universal public service by the government," said David Trimble, director of physical infrastructure at the U.S. Government Accountability Office, in an interview with CNBC. "But at the same time, it's an organization that's required to be self-financing."

Watch the video above the learn more about the business model of the U.S. Postal Service and why it's not working.

 

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Happy to pay for the USPS as a government service. They are not perfect but I have a lot of respect for what they do and the value they provide.

Speaking of the USPS, what is happening with the sorting machines, workers rights and what's his name who runs the show? Is he in jail yet?

Lol, because state ran business are inefficient and consistently lose money. What’s more impressive is how profitable Fedex and UPS are. Another fine example of how much better the free market provides when compared to the state.

Pensions and too many offices and too many delivery days

They need to charge what it costs to deliver.

Save you a click. Congress passed a law in 2006 that forced them to pay future retirement benefits 50 years into the future, and also limited how much they can raise price of stamps, tied to inflation. They are hamstrung, AND receive no federal money. Re-designed to fail.

It's not working because unions.

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United States, Six Other Nations Ask Tech Companies To Build Backdoors To Encrypted CommunicationsI am a Breaking News Reporter at Forbes, with a focus on covering important tech policy and business news. Graduated from Columbia University with an MA in Business and Economics Journalism in 2019. Worked as a journalist in New Delhi, India from 2014 to 2018. Have a news tip? DMs are open on Twitter SiladityaRay or drop me an email at siladityaprotonmail.com. Meanwhile whatsapp be like I will be a pro here Sounds illegal.. or at least should be and if it’s not it just be flat out more dangerous and easier for hackers to access if they did that. How in the hell could this lead to anywhere but disaster?
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