3 ms·

I've heard that the post office doesn't receive taxpayer funds directly, but tbh even after googling around I don't understand how that works. For example https

I've heard that the post office doesn't receive taxpayer funds directly, but tbh even after googling around I don't understand how that works. For example https://www.brookings.edu/blog/up-front/2020/08/26/how-is-the-u-s-postal-service-governed-and-funded/ https://www.brookings.edu/blog/up-front/2020/08/26/how-is-th... says the post office lost $70b between 2008 and 2018. If it lost that much money but is still around, who covered that $70b? (Honest question. I'd guess taxpayers are where the buck eventually stops?)

smt88 5y ago
First, USPS is a viable business, even at current low (set by Congress) prices[1]. That's how it gets its funding[2]. If it has a loss during a certain year, it dips into its cash or sells assets, like any other business. The reason it sometimes looks badly unprofitable is because of an attempt by Republicans to kill it by imposing unique and crushing financial obligations on it that don't apply to any other business[3][4]. By making it look unprofitable, they can argue that it's costing taxpayers money and then propose privatizing it[5]. It's part of a long-term strategize to run government organizations into the ground in order to justify dismantling them. From Barron's: > The USPS loses money, but cash flow has been more stable. That is because as mentioned above, the USPS has some unusual expenses, imposed by Congress, that artificially depress earnings. > In 2006, Congress essentially told the post office to set aside $110 billion over 10 years. That, by our math, is $11 billion a year. The annual free cash flow reported by UPS, for comparison, was about $6.4 billion in 2018. > The requirement hit cash flow until the post office could deal with the expense no longer. Now the Postal Service just records the cost on its books, cutting into the bottom line, but without setting aside any cash.[3] 1. https://news.nd.edu/news/postal-service-losing-money-because-of-congressional-mandate-not-low-prices-expert-says/ https://news.nd.edu/news/postal-service-losing-money-because... 2. https://www.nbcnews.com/business/economy/usps-funding-crisis-bigger-election-experts-warn-n1237579 https://www.nbcnews.com/business/economy/usps-funding-crisis... 3. https://www.barrons.com/articles/usps-louis-dejoy-post-office-pelosi-mail-in-ballots-51597687253 https://www.barrons.com/articles/usps-louis-dejoy-post-offic... 4. https://en.wikipedia.org/wiki/United_States_Postal_Service#Retirement_funding_and_payment_defaults https://en.wikipedia.org/wiki/United_States_Postal_Service#R... 5. https://www.npr.org/2020/08/16/902977021/the-history-of-political-interference-in-the-usps https://www.npr.org/2020/08/16/902977021/the-history-of-poli...

smt88 5y ago

First, USPS is a viable business, even at current low (set by Congress) prices[1]. That's how it gets its funding[2]. If it has a loss during a certain year, it dips into its cash or sells assets, like any other business. The reason it sometimes looks badly unprofitable is because of an attempt by Republicans to kill it by imposing unique and crushing financial obligations on it that don't apply to any other business[3][4]. By making it look unprofitable, they can argue that it's costing taxpayers money and then propose privatizing it[5]. It's part of a long-term strategize to run government organizations into the ground in order to justify dismantling them. From Barron's: > The USPS loses money, but cash flow has been more stable. That is because as mentioned above, the USPS has some unusual expenses, imposed by Congress, that artificially depress earnings. > In 2006, Congress essentially told the post office to set aside $110 billion over 10 years. That, by our math, is $11 billion a year. The annual free cash flow reported by UPS, for comparison, was about $6.4 billion in 2018. > The requirement hit cash flow until the post office could deal with the expense no longer. Now the Postal Service just records the cost on its books, cutting into the bottom line, but without setting aside any cash.[3] 1. https://news.nd.edu/news/postal-service-losing-money-because-of-congressional-mandate-not-low-prices-expert-says/ https://news.nd.edu/news/postal-service-losing-money-because... 2. https://www.nbcnews.com/business/economy/usps-funding-crisis-bigger-election-experts-warn-n1237579 https://www.nbcnews.com/business/economy/usps-funding-crisis... 3. https://www.barrons.com/articles/usps-louis-dejoy-post-office-pelosi-mail-in-ballots-51597687253 https://www.barrons.com/articles/usps-louis-dejoy-post-offic... 4. https://en.wikipedia.org/wiki/United_States_Postal_Service#Retirement_funding_and_payment_defaults https://en.wikipedia.org/wiki/United_States_Postal_Service#R... 5. https://www.npr.org/2020/08/16/902977021/the-history-of-political-interference-in-the-usps https://www.npr.org/2020/08/16/902977021/the-history-of-poli...