![]() ![]() It all starts with how the postal system works: According to Kevin Kosar, vice president of policy for the R Street Institute, a free-market think tank, USPS is basically two separate entities: the monopoly side and the market side. So packages are the Postal Service’s one positive note in an otherwise dismal financial report, and are at the very least not the only reason the organization is hemorrhaging money. The other issue that drags down the Postal Service’s revenue: high labor costs plus the financial obligations to employees’ health and retirement benefit programs, which cost billions. The problem is the revenue from first-class mail - still the biggest source of the USPS’s revenue - is declining. Delivering packages, it turns out, is a growth business, and it actually makes the Postal Service money: The revenue from package increased $2.1 billion, and was up 11.8 percent for fiscal year 2017. That is “many billions of dollars.”īut break down the losses, and the situation is a bit more nuanced. Magnified over decades, that figure represents a cumulative net loss of more than $63 billion since 2007. The US Postal Service’s financial woes are, by now, well-documented: In November 2017, the Postal Service made a net loss of $2.7 billion. The Postal Service is bleeding money - but its parcel services are doing okay Larger institutional problems in the age of email and two-hour delivery are really to blame - but also much, much harder to fix. And it’s likely that Amazon gets a good deal, given that it ships millions of boxes a year.īut the Postal Service’s problems are deeper than just delivering packages. The Postal Service does lose billions each year, and has for the past decade. Trump June 28, 2017Īmazon’s stock took a slight dip after Trump’s tweet, which also suggested the Postal Service should be charging “MUCH MORE.”īut is Trump right that Amazon is ripping off the Postal Service? The question of whether it should or could charge more is complicated. ![]() The #AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes (which they should) is FAKE NEWS!- Donald J.
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