US Post Office To Run $7 Billion Deficit In 2009
Interesting article in today’s New York Times on the US Postal Service: “Increasing Postal Deficits Intensify Talks On Solution”, July 30, B1.
This highlights a key difference between the operations of a private company and a public one. Private delivery companies like UPS and Federal Express are cutting costs to align their operations with current demand. The Post Office, however, being a public company, has its decisions subject to political considerations. Republican Representative Jo Ann Emerson from Missouri, for example, opposes a five day delivery week and the closure of post office stations.
This kind of thing is also happening at GM, Citi and more and more as the federal government owns more and more of the economy.