US Postal Service in financial trouble
“Unsustainable deficits” is what the Government Accountability Office (GAO) report is calling the U.S. Postal Service financial problems.
The Washington Free Beacon is reporting that the U.S. Postal Service racked up a net loss of $5.1 billion dollars last year, the 9th year in a row they lost money. The GAO had put them on a high risk list back in 2009 and obviously they will remain on that list.
The report informs us that their financial condition continues to worsen due to two factors:
- Declining mail volume
- Rising expenses
Their First Class mail service is expected to decline due to electronic alternative, i.e. email and online bill paying, and their salary and benefits are rising at what the GAO considers are “unsustainable rate”.
What do we do?
How do we curtail these expenses?
Do we need to raise prices?
Their financial problems hurt their ability to fund their retiree health system as well as their pensions. Right now their unfunded liabilities for their health and pension systems total $78.9 billion.
The U.S. Postal Service would like to combine their retiree health plan with Medicare and increase their prices. They believe that would save them about $27 billion over the next 5 years.
There are many people who have worked very hard during their life and now their benefits are in peril. They are in peril partly because of promises made to them by the Postal Service and their Unions that were unsustainable and the creative destruction of their services via email and online bill paying.
In order to help with cost could we reduce postal service from 6 days a week to possibly 5 or 4?
Let’s discuss this today on my program, The Live with Renk show, which airs Monday through Friday 9 a.m. to noon, to let me know your thoughts at (269) 441-9595.
Or please feel free to start a discussion and write your thoughts in the comment section.