The agency blamed the losses on the recession that began in December 2007 and significant declines in mail volume as a result of changes in the way Americans communicate in the age of the Internet. Why Does the US Postal Service Lose Money? Wonder why the post office is losing money. Retrieved from https://www.thoughtco.com/postal-service-losses-by-year-3321043. For the fiscal year that ended on September 30, 2018, the Postal Service recorded a then-record loss of $3.9 billion. That is because as mentioned above, the USPS has some unusual expenses, imposed by … COVID-19 Pandemic Threatens Postal Service Survival. The post office may be losing money, but Amazon is not to blame . And third, provide Medicare for future USPS retirees. "Why Does the US Postal Service Lose Money?" This was not regular mail, but certified with a return receipt and the shortage was on the certified fee. “The Postal Service is in need of urgent help as a direct result of the coronavirus crisis,” said the House Committee on Oversight and Reform. The Postal Service said it had made "significant cost reductions in areas within its control" by 2011 but claimed it needed Congress to approve several other measures to boost its financial outlook. This creates a $6.5 billion annual shortfall that could easily be avoided.”. However, without unreasonably burdensome restrictions, it would likely be a different story. Many would have us do away with the Postal Service altogether. Then you have about 250 big distribution centers. By the end of the decade, the semi-independent government agency's losses had reached a record $8.5 billion, forcing the Postal Service to consider seeking an increase in its $15 billion debt ceiling or face insolvency. Claim: \"Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. However, with fewer people and businesses because of the COVID-19 outbreak, the quasi-governmental Postal Service—which relies on user fees rather than taxes—could be forced to close its doors as early as June 2020, lawmakers warned. But, according to James O’Rourke, professor of management at the University of Notre Dame’s Mendoza College of Business, the postal service’s money troubles have little to do with low prices and much more to do with a stifling congressional mandate. “The postal service is a joke,” Trump told reporters in the Oval Office. Notre Dame, IN 46556 USA, Postal Service losing money because of congressional mandate not low prices, expert says. Murse, Tom. As I entered my office this morning, there sat a returned letter from the post office with $.05 postage due. The Postal Service's finances have long been in sorry shape, in part because of a requirement that the agency pre-fund the future retirement benefits of its employees. Naturally, the post office is not exempt from that impact, and it didn’t take long to feel its effects. Postal Service lost money in six out of the 10 years from 2001 through 2010, according to its financial reports. Is End of Saturday Mail Delivery Such a Good Idea? I freaking HATE shipping through the post office! The USPS loses money, but cash flow has been more stable. The U.S. Second, adopt generally accepted accounting principles to determine postal service liabilities. God only kn “These negative effects could be even more dire in rural areas, where millions of Americans are sheltering in place and rely on the Postal Service to deliver essential staples,” the lawmakers warned. why is the post office losing money 2020; 07 Jan. why is the post office losing money 2020. https://www.thoughtco.com/postal-service-losses-by-year-3321043 According to the Times, the real financial problem facing the Post Office may have been created by Congress in the first place through the 2006 Postal Accountability and Enhancement Act. Every community in America relies on the Postal Service to deliver vital goods and services, including life-saving medications.”. Evidently they changed the rate from $2.80 to $2.85 and, in typical U.S. Listen Now. Trump has raised a valid … … The first one that comes to mind is — you guessed it — the coronavirus pandemic. “Amazon is going to pay for the post office,” Trump said. See also: Find Postal Service Jobs Without Being Scammed, "We must pay today for benefits that will not be paid out until some future date," the Postal Service said. Postal Service continued to bleed money during its second quarter, despite an increase in package revenues and an emergency price hike that took effect in January. “Also, covering a $6.5 billion shortfall with a four-fold increase in parcel post would essentially close down that class of service. The reason the postal service is losing money is because of a congressionally mandated retirement healthcare funding program that no other government agency is required to observe. At the time, Postmaster General Megan Brennan bluntly declared that … But O’Rourke says, at the encouragement of the president, Congress created this problem on their own. Evidently they changed the rate from $2.80 to $2.85 and, in typical U.S. “It would be unwise to allow this to continue,” he said. Despite the dire warnings, however, the USPS received no additional funding in the $2 trillion coronavirus stimulus and relief package legislation signed by President Trump on March 27, 2020. a congressionally mandated retirement healthcare funding program that no other government agency is required to observe. Even though folks don't write letters much anymore and many pay bills online, they buy more online more than ever - so delivery is even more in demand. Reuters. to Alberta. The problem is that Congress refuses to let it raise more money, refuses to let it spend less money… The Post Office Lost $2 Billion In Just 3 Months. Tom Murse is a former political reporter and current Managing Editor of daily paper "LNP," and weekly political paper "The Caucus," both published by LNP Media in Lancaster, Pennsylvania. The Postal Service was considering a host of cost-saving measures including the closure of as many as 3,700 facilities, the elimination of wasteful spending on travel, the end of Saturday mail and cutting delivery to just three days a week. Postal Service (USPS) had largely completed Post Office Structure Plan's (POStPlan) implementation prior to a 2014 POStPlan arbitration decision and expected millions in cost savings. It reported a $2.7 billion net loss in 2017. why is the post office losing money 2020. por | Ene 7, 2021 | Sin categoría | 0 Comentarios | Ene 7, 2021 | Sin categoría | 0 Comentarios “The current agreement with Amazon, and presumably other online merchants, is, at the very least, a break-even arrangement. https://www.thoughtco.com/postal-service-losses-by-year-3321043 (accessed January 26, 2021). As I entered my office this morning, there sat a returned letter from the post office with $.05 postage due. The Post Office has broad limitations about making routine business decisions that its private-sector competitors do not. THEY LOSE A FORTUNE, and this will be changed.\" But the post office is not funded by U.S. tax dollars. The Mail is Arriving Way too Late, Watchdog Reports, Mail Delivery Could be Even Slower Than USPS Admits, Code of Ethics for United States Government Service, History of the United States Postal Service, How the Votes Are Counted on Election Day, Living Past 90 in America is No Decade at the Beach, Congressional Oversight and the US Government, Postal Accountability and Enhancement Act of 2006, Find Postal Service Jobs Without Being Scammed. The solution, O’Rourke says, would involve three steps: “First, repeal the pre-funding mandate and use the accumulated reserves to fund future pay-as-you-go costs,” he said. (SOUNDBITE OF ARCHIVED RECORDING) PRESIDENT DONALD TRUMP: The post office is losing billions of dollars, and … It's true that the post office is losing money. Murse, Tom. They cannot make it up with higher-priced stamps.”, Contact: James O'Rourke, James.S.ORourke.2@nd.edu, Copyright © 2021 For the first three months of 2018, the US Postal Service reported a $1.3 billion loss, up from $562 million a year ago. This was not regular mail, but certified with a return receipt and the shortage was on the certified fee. This is a small box going from Western Wa. WASHINGTON, Aug 11 (Reuters) - The U.S. The law required the service to begin prefunding the healthcare benefits of future retirees 50 years in advance. Is the post office just screwed up over retirement benefits or are they so bad at business they need to fail? By Elvina Nawaguna. On April 24, President Trump threatened to block an emergency federal loan for the U.S. By Letter to the Editor. By Letter to the Editor. There are several key reasons that the USPS is hemorrhaging money. Wonder why the post office is losing money. So why is the agency losing money? Is the post office making or losing money delivering Amazon packages? USPS just hired FedEx to haul mail for it for the next seven years... for $10.5 billion. “The Trump administration is mistaken about its claim that the postal service is losing money ‘every time they hand out a package for Amazon and other Internet companies,’” O’Rourke said. Although the Postal Service lost money in the early part of the decade, in 2001 and 2003, the most significant losses came after the passage of a 2006 law requiring the agency to refund retiree health benefits. 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