US Post Office To Run $7 Billion Deficit In 2009

July 30, 2009 at 10:45 am  ·  Category: Economics, Politics

us-postal-mail-volume

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.

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 
4 Responses to “US Post Office To Run $7 Billion Deficit In 2009”
  • [...] Originally Posted by Synergy1 Your post must be an assumption or wish. No one can effectively deliver a First Class letter to any USA address for 44 cents except the USPS… Note the words "to any USA address" The USPS can’t do it for 44 cents either. US Post Office To Run $7 Billion Deficit In 2009 :: Top Gun Financial Planning [...]

  • [...] Posted by shorebaby The USPS can’t do it for 44 cents either. US Post Office To Run $7 Billion Deficit In 2009 :: Top Gun Financial Planning So it will go to 46 or [...]

  • Lemme see, if the Government (you and me) have to cover that shortfall for the USPS (just for 2009, that’s about an extra $23.00 per human being in the country. If you only count people who pay taxes it’s more. FedEx and UPS don’t need that bailout each year. They actually MAKE money. Why not just disband the post office and let private companies come in and compete to do that same job? Overall it would naturally be cheaper because companies adjust their size and operation cost with the demand for their product. Unlike the post office whose employees consider it a “right” to work there. Is this microphone on? Tap tap tap…hello?

    Dave Smith  ·  Mar 2, 2010 at 11:07 am  ·  Permalink
  • Having worked for 40 years for a company in the top 50 of the Fortune 500, it is unbelievalbe to me that the Postal Union has a “no layoff” policy that was negotiated with the USPS. That would never work with a PRIVATE COMPANY. as they cannot depend on the Taxpayer to bail them out if they lose money. Owning the “printing presses” gives the USPS a distinct advantage.

    On the personal side, I am relieved that this is the policy since I have close relatives who get a paycheck from the USPS. However it still is not right.

    Mike  ·  Mar 20, 2010 at 9:18 am  ·  Permalink

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