Why Is The Post Office Losing Money?

What would happen if the USPS privatized?

A privatized USPS would pay federal, state, and local taxes, which would put the USPS on a level playing field with other businesses..

What percentage of postal workers are black?

Around a quarter (23%) of Postal Service workers are black, 11% are Hispanic and 7% are Asian. In contrast, black Americans make up 13% of the national workforce, Hispanics 17% and Asian Americans 6%. In 38 states, 50% or more of Postal Service employees are white, but racial and ethnic differences do exist.

Is the post office losing money?

Sign up now. Postmaster General Megan Brennan told House lawmakers earlier this month that the pandemic is causing an unprecedented drop in mail. The agency is anticipating a loss of $13 billion in revenue this fiscal year due to the crisis and another $54 billion in losses over 10 years.

Why is the post office not profitable?

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. … “First, repeal the pre-funding mandate and use the accumulated reserves to fund future pay-as-you-go costs,” he said.

How long has the Postal Service been losing money?

The U.S. Postal Service lost money in six out of the 10 years from 2001 through 2010, according to its financial reports.

Does the US Postal Service make a profit?

The reality is that the Postal Service is making operating profits and its reported losses are primarily caused by unpaid retiree health benefit obligations. The most recent six years show that the Postal Service is covering its operating costs, but not by enough to pre-fund health benefits.

Will the post office ever go out of business?

USPS requests $75B amid pandemic to recover from ‘steep’ drop in mail volume. Postmaster General Megan Brennan warned the House Oversight and Reform Committee last year the Postal Service would run out of cash by 2024 without legislative and regulatory reform.

Who runs the post office?

The U.S. Postal Service (USPS) is a large business enterprise operated by the federal government. It has more than 600,000 employees and more than $70 billion in annual revenues.