Postmaster general: The USPS is currently losing $25 million, every day

posted at 9:21 pm on April 17, 2013 by Erika Johnsen

Dang.

The Postal Service is currently operating with a broken business model. Since the economic recession of 2008, we have been experiencing a significant imbalance between revenues and costs. This imbalance will only get worse in the coming decade unless laws that govern the Postal Service are changed. In the past few years, the Postal Service has recorded $21 billion in losses, including a default of $11.1 billion in payments to the United States Treasury. The Postal Service has exhausted its borrowing authority and continues to contend with dangerously low liquidity. We are losing $25 million a day, and we are on an unsustainable path.

And how! The United States Post Office can’t manage to turn a profit, and there are plenty of available substitutes ready and rarin’ to expand their own operations at zero cost to the American taxpayer. What is this business with preserving an inefficient, bureaucratic system that subsidizes costly mail deliveries and unproductive jobs? As John Stossel wrote this week, it is way past time to privatize this sucker.

They have a near monopoly on first-class mail delivery. You want to deliver something to someone? You better not put it in their mailbox — that’s illegal. The U.S. Postal Service doesn’t pay sales tax or property tax. They don’t even pay parking tickets.

With advantages like that, how do they lose money? …

“We are expected to operate like a business, but Congress has not allowed us the flexibility to operate like a business,” said Postal Service Board of Governors Chairman Mickey D. Barnett on my TV show. It’s all “part of being a quasi-governmental entity. That’s how the cookie crumbles.” Barnett added that the post office has “union contracts that have no layoff provisions.” …

And private alternatives are much better today. We have e-mail. UPS delivers 300 packages a minute and makes a profit. Federal Express, UPS and others thrive by finding new ways to cut costs. They don’t do it because they were born nicer people. They do it because of the pressure of competition. They make money — while the post office loses $16 billion.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Cliff Clavin and Newman could not be reached for comment.

Del Dolemonte on April 17, 2013 at 9:22 PM

I guess I should lick two tramps…

Electrongod on April 17, 2013 at 9:23 PM

Stamps that is.

Electrongod on April 17, 2013 at 9:23 PM

Dang it!!
Can I delete?

Electrongod on April 17, 2013 at 9:24 PM

AWESOME!

Pork-Chop on April 17, 2013 at 9:27 PM

Electrongod on April 17, 2013 at 9:24 PM

No worries Electro, we all have our Chinese keyboards bite hard sometimes.

Limerick on April 17, 2013 at 9:27 PM

No, EG, that is forever. Like Herpes.

RovesChins on April 17, 2013 at 9:27 PM

Dang it!!
Can I delete?

Electrongod on April 17, 2013 at 9:24 PM

No-can-do amigo. I’d just like to know whether you’re in a fightin’ mood or a lovin’ mood.

antipc on April 17, 2013 at 9:28 PM

No-can-do amigo. I’d just like to know whether you’re in a fightin’ mood or a lovin’ mood.

antipc on April 17, 2013 at 9:28 PM

*clink*

But I only had three…

Electrongod on April 17, 2013 at 9:29 PM

Dang it!!
Can I delete?

Electrongod on April 17, 2013 at 9:24 PM

Hahahahahahahaha you got it right the first time hahahahahahaha

Scrumpy on April 17, 2013 at 9:29 PM

I guess I should lick two tramps…

Electrongod on April 17, 2013 at 9:23 PM

Well then. Huh.

Bishop on April 17, 2013 at 9:30 PM

Ouch.

CW on April 17, 2013 at 9:30 PM

Barnett added that the post office has “union contracts that have no layoff provisions.” …

Right there is what is the real problem. Places like UPS which mind you, are ALSO UNION, do not have this problem. They are able to take on more people during certain parts of the year when it is needed and then cut the work force when it is not needed.

watertown on April 17, 2013 at 9:30 PM

But the USPS cares.

Curtiss on April 17, 2013 at 9:31 PM

Postmaster general: The USPS is currently losing $25 million, every day

…well then!…it’s time to buy everyone new uniforms!

KOOLAID2 on April 17, 2013 at 9:34 PM

And how! The United States Post Office can’t manage to turn a profit

“This is a good thing! Profit is overhead.”
–Obama

hit and run on April 17, 2013 at 9:35 PM

*blushing*

Sorry guys..

Electrongod on April 17, 2013 at 9:35 PM

Delivery two days/week would be plenty.

tom daschle concerned on April 17, 2013 at 9:35 PM

Eliminate the post office. Let the private sector and free market work.

nazo311 on April 17, 2013 at 9:35 PM

And private alternatives are much better today. We have e-mail. UPS delivers 300 packages a minute and makes a profit. Federal Express, UPS and others thrive by finding new ways to cut costs. They don’t do it because they were born nicer people. They do it because of the pressure of competition. They make money — while the post office loses $16 billion.

Show of hands…..

If Congress gives the USPS more flexibility in things like rates and free them from cumbersome union contracts, how many people think that they would use their new-found freedom to find new ways to cut costs and become more competitive?

Now how many people think that they’d manage to muck it up, immediately raise postal rates, and refuse to fire any personnel or otherwise cut costs and become more like one of their competitors?

Happy Nomad on April 17, 2013 at 9:35 PM

I guess I should lick two tramps…

Electrongod on April 17, 2013 at 9:23 PM

…and you’re not even going to link their pictures?
…cum cum!

KOOLAID2 on April 17, 2013 at 9:36 PM

…well then!…it’s time to buy everyone new uniforms!

KOOLAID2 on April 17, 2013 at 9:34 PM

Actually they could use some new uniforms. I think they are using they same ones they did 20 years ago….
/

how is this 25 million funded?

why is it the only monopolies that really survive have some connection to the government?

CW on April 17, 2013 at 9:37 PM

KOOLAID2 on April 17, 2013 at 9:36 PM

:)

I apologize…

Electrongod on April 17, 2013 at 9:38 PM

They must be selling off the stuff I send through the mail on ebay to make up the difference. I’ve lost two of six packages.

southsideironworks on April 17, 2013 at 9:38 PM

GOTD can’t come soon enough..
Well..

It probably will…

Electrongod on April 17, 2013 at 9:39 PM

G = Q…

Electrongod on April 17, 2013 at 9:40 PM

OK..
I am stepping away from the keyboard..

Electrongod on April 17, 2013 at 9:41 PM

Like the DMV, the inside of a post office is a fantastic case study in how to run a business poorly.

That any manager would dare take an employee away from the counter for a “scheduled break” when there is a line of customers waiting is ludicrous (and, of course, not limited solely to government services).

Jeddite on April 17, 2013 at 9:42 PM

G = Q…

Electrongod on April 17, 2013 at 9:40 PM

You’re on a roll.

Curtiss on April 17, 2013 at 9:42 PM

I apologize…

Electrongod on April 17, 2013 at 9:38 PM

…I wouldn’t! (:->)

KOOLAID2 on April 17, 2013 at 9:42 PM

OK..
I am stepping away from the keyboard..

Electrongod on April 17, 2013 at 9:41 PM

…don’t forget your pants!

KOOLAID2 on April 17, 2013 at 9:43 PM

Here’s an idea. Get Congress to repeal that stupid 2006 law that forces the Post Office to pay $5.5 billion a year for health care benefits for people who aren’t even born yet.

SoulGlo on April 17, 2013 at 9:44 PM

…don’t forget your pants!

KOOLAID2 on April 17, 2013 at 9:43 PM

I am going to step back and watch..

What a day…

Electrongod on April 17, 2013 at 9:45 PM

Draconian sequester cuts. Is there nothing it can’t do?

locomotivebreath1901 on April 17, 2013 at 9:45 PM

G Q
Electrongod on April 17, 2013 at 9:40 PM

That you are!! ;-D

Scrumpy on April 17, 2013 at 9:46 PM

Jeddite on April 17, 2013 at 9:42 PM

Bingo. They have no customers.

Limerick on April 17, 2013 at 9:47 PM

I guess I should lick two tramps…

Electrongod on April 17, 2013 at 9:23 PM

LOL I thought this was on purpose, now I’m laughing so hard LOL

NerwenAldarion on April 17, 2013 at 9:50 PM

OT: Fertilizer plant explosion in Waco. Prayers to my fellow west Texans.
H/T Twitchy.

annoyinglittletwerp on April 17, 2013 at 9:58 PM

OK..
I am stepping away from the keyboard..

Electrongod on April 17, 2013 at 9:41 PM

Appears your keyboard beat you to the punch on that score! Though I gotta admit that licking two tramps was not an image I was expecting on this particular thread.

Happy Nomad on April 17, 2013 at 9:59 PM

OT: Fertilizer plant explosion in Waco. Prayers to my fellow west Texans.
H/T Twitchy.

annoyinglittletwerp on April 17, 2013 at 9:58 PM

What??

Electrongod on April 17, 2013 at 10:00 PM

annoyinglittletwerp on April 17, 2013 at 9:58 PM

OMG! We have bad weather here, is it on national news? Hope people are ok and yes hin, will send up prayers!

Scrumpy on April 17, 2013 at 10:00 PM

hin = hon

Scrumpy on April 17, 2013 at 10:02 PM

Charge More… A LOT more!
If the post office would treat it like a business, they’d charge more, much more. Send the rates through the roof. Sure, that would mean less mail, but there would also be less need for equipment a n d carriers and the whole lot. No loss, but a handsome profit instead. Of course, the post office is happy with the way it is.

anotherJoe on April 17, 2013 at 10:02 PM

Here’s the Twitchy link.

annoyinglittletwerp on April 17, 2013 at 10:05 PM

Electrongod on April 17, 2013 at 9:35 PM

No need,you said what most guys on here were thinking at this hour of the night.Of course I wasn’t.

docflash on April 17, 2013 at 10:08 PM

I guess I should lick two tramps…

Electrongod on April 17, 2013 at 9:23 PM

Leave Britney Spears ALONE!

Lily on April 17, 2013 at 10:08 PM

Here’s a better link.

annoyinglittletwerp on April 17, 2013 at 10:10 PM

G

scalleywag on April 17, 2013 at 10:12 PM

Gee who could have seen that coming, is what I meant to say. Keyboards are being hijacked tonight!

scalleywag on April 17, 2013 at 10:13 PM

Pretty soon we’re talking about real money.

Jackalope on April 17, 2013 at 10:24 PM

No, EG, that is forever. Like Herpes.

RovesChins on April 17, 2013 at 9:27 PM

Or other diseases that can be gotten by licking tramps.

Leave Britney Spears ALONE!

Lily on April 17, 2013 at 10:08 PM

Hmmm. I was thinking Charlie Chaplin.

malclave on April 17, 2013 at 10:27 PM

Today my postal worker showed up in jeans, a trendy shirt and a cool messenger bag. Other than the loads of junk mail in his hands I had no idea he worked for the post office.

myrenovations on April 17, 2013 at 10:30 PM

And thanks, EG, I needed the laugh. You did a service :)

Jackalope on April 17, 2013 at 10:31 PM

Hmmm. I was thinking Charlie Chaplin.

malclave on April 17, 2013 at 10:27 PM

Whatever/whoever floats your boat. But since he was licking two tramps I suppose one of each would work.

Lily on April 17, 2013 at 10:35 PM

Isn’t this actually an improvement? Last year, they lost $16 billion, $25 million multiplied by 6 days a week and 52 weeks of the year comes to: $7.8 billion.

HakerA on April 17, 2013 at 10:41 PM

It’s OK, they fund their budget with “forever stamps”.

virgo on April 18, 2013 at 12:51 AM

UPS and FedEx are coining money, providing the same service. It’s a great object lesson.

Democrats who support ObamaCare, of whom there are fewer and fewer, need only look here to see what happens when the government runs a business.

MTF on April 18, 2013 at 7:09 AM

I still say every other day delivery will save a lot more than no Saturday delivery. Half get mail Mon,Wed,Fri and half Tue,Thu,Sat. Requires 1/2 the delivery people, and 1/2 the vehicles.

Dasher on April 18, 2013 at 10:38 AM

Nobody’s used the “B” word yet.

Let them declare bankrupcy and let the courts straighten out those union contracts.

osborn4 on April 18, 2013 at 3:20 PM