(via CNN) The Postal Service announced a $3.5 billion loss for the most recent quarter. Mail volume has dropped by about 21% since 2007, but costs have skyrocketed. This was the 14th loss in 16 quarters. Revenue will continue to drop, but expenses will continue to rise largely because of union worker health plan obligations. They are reducing the number hours worked this year to equate to 36,000 full-time employees – but since they have almost 600,00 employees, this seems like a drop in the bucket.
Late in the article, you have this:
Earlier this year, the USPS estimated that it will incur about $238 billion in losses in the next 10 years if Congress doesn’t permit it to revamp its outdated business model.
I’ve got a suggestion for revamping the business model: shut it down. With no incentive to make a profit, they never will. The Postal Service is just one example of how ineffective the federal government is at doing things. They have an endless supply of capital (from you and me) and don’t really have to answer to anyone. If you and I ran a business like this, we’d be out of business.
