The news is that the United States Postal Service had a third quarter loss of $2 billion.
Many think the Post Office is simply a losing proposition. The opposite is true. Revenues for the USPS are up overall 2.2%! Package deliver revenue rose 6.6%. Standard mail revenue was up 5.1%.
So you ask, if the Post Office is doing so well, why are they doing so poorly?
The answer is Congress. They just don’t have a clue. For instance, the House Oversight and Government Reform Committee Chairman Darrel Issa (R-CA) said, “The Postal Service’s latest reported loss illustrates the urgent need for postal reform to prevent a taxpayer funded bailout of the Postal Service. Unfortunately, some in Congress still have not come around to the need to allow the struggling institution to right size itself. In fact, just last week, 22 senators asked for a renewed moratorium on mail processing facility consolidations, consolidations that would enable the Postal Service to save hundreds of millions of dollars each year.”
Even Issa doesn’t get it. Or he’s deliberately ignoring the truth. The Post Office should be breaking even or even making a small profit, but it isn’t.
Why? Is it because Congress won’t let them downsize?
No! Its because the Postal Service is the only government agency that has to PREFUND its retiree health benefits under a 2006 law (which coincidentally is when the USPS started losing money). The Postal Service has to prefund those benefits to the tune of about $5.8 billion a year.
No other public or private entity is affected by that law — only the Post Office. All other government and most private companies have a “pay-as-you-go” system, whereby they pay the premiums as they are billed.
Because of this burdensome law, the Postal Service has operated at a loss 21 of the past 23 quarters. And those two quarters were when Congress rescheduled the prefunding payments!
So you have to ask yourself Why? Why is the Postal Service being singled out?
And why is Congress too stupid to realize they caused this mess in the first place?