While losses of revenue are being presented as the reason for the proposed elimination of Saturday delivery, in truth the Postal Service’s “crisis” is the creation of Congress. Not a few congressmen ache for privatization and the huge profits that would entail for certain services (but mailing a letter to Alaska for 46 cents? Forget about it.
“The U.S. Postal Service lost $1.3 billion during the first quarter, but it could have turned a $100 million profit if not for a congressional mandate that officials have long blamed for stifling post office finances, according to the agency’s first-quarter financial statement.
The report, released Friday, shows that the Postal Service paid $1.4 billion toward health benefits for future retirees, an expense that pushed the organization into the red.
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Congress passed a statute in 2006 requiring the early payment of 75 years worth of retiree benefits within 10 years. No other federal agency is forced to make such an investment.”