The U.S. Postal Service Loses $3.5 Billion


This story brings me to ask how much longer will we have mail deliver to our home mail boxes? It’s bad when our government can not manage their own business and at the same time want to take over private companies like GM and our Healthcare. Seem that the price of the stamp will go sky-high soon! When will it all stop?

The U.S. Postal Service reported a quarterly net loss of $3.5 billion on Thursday and said it probably will have a cash shortfall going into 2011.

The agency, which delivers nearly half the world’s mail, has reported net losses in 14 of the past 16 fiscal quarters.

Revenue in the third quarter that ended June 30 fell $294 million to $16 billion from a year ago, while expenses were $789 million higher at $19.5 billion, due largely to higher workers’ compensation costs and retiree health benefits.SOURCE

“Unfortunately, the Postal Service seems to be attempting to justify their proposed rate hikes of ten times the rate of inflation – a move that would drive away more consumers and worsen the financial situation they’re highlighting in this report,” said Tony Conway

LINKS:

(1)  Unemployment at 9.5%; another Obama econ adviser bails; Mrs. Obama hits the beach  By Michelle Malkin

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4 comments on “The U.S. Postal Service Loses $3.5 Billion

  1. The real reason that the Postal Service loses $ is the ludicrous requirement that it has to significantly fund its retirement obligations at a higher rate than any other federal agency. The excess amount so far totals $50-75 billion. The annual amount is actually more the loss referred to above. By the way, they continue to reduce staffing levels as well.

  2. Yes the high ups get paid high wages and keep their jobs while the mail delivery person gets low pay and less retirement benefits! I agree Tarheeltalker and the reason is that the government has never ran a business very good. Isn’t Obama and the democrats hollering about private companies do the same? I don’t think it’s the internet giving the PO it’s problems as the email can not delivery packages and really only can delivery copies of legal docs which has to be sent by mail to be legal. Do you agree? I could be wrong!

  3. Very much agree. Obama promised during the campaign that he was on the side of the postal worker. sure he is!

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