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The US Postal Service is so deeply in debt that it could default on a $5.5 billion payment for retiree benefits by month’s end.
The biggest burden: health-care benefits for retirees. Adjusted for inflation, health-care costs have soared 448 percent since 1972. Back then, benefits were only 8 percent of the USPS’ operating expenses -- but by last year they were 30 percent.
The result: The USPS lost $2.8 billion in 2008, $3.7 billion in 2009, $8.3 billion last year, and it’s $8.5 billion in the red this year.
So the USPS is asking Congress for permission to cut 120,000 employees, shed another 100,000 through attrition and fix its failing health-care system to remain afloat.
The United States Postal Service, the U.S.' Most Trusted Government Agency for six consecutive years, is nearing closure due to lack of cash, a clear signal that the traditional mail service has been taken over by the Internet revolution.
The Postal Service is due to make payment amounting to $5.5 billion this September and unless there is Congressional action to help address its dire financial situation, it may be forced to close shop.
“Our situation is extremely serious. If Congress doesn’t act, we will default”, USPS postmaster general, Patrick R. Donahoe told the New York Times in an interview.
The New York Times reports the Postal Service may run out of funds early next year, which could have an impact on the agency's ability to deliver around three billion mail weekly.
In a statement posted on its website in August, the Postal Service said it will be insolvent this month due to significant declines in First-Class Mail volume, the effects of a Congressional mandate to prefund retiree health benefits and increases in network costs, wages and benefits.
Originally posted by MentalGiant
The GOVERNMENT HAS NEVER DONE A THING TO BENEFIT ME!!!!
Originally posted by AlreadyGone
If the US Govt was smart, they would sell off the USPS to UPS or FedEx.