How The U.S. Postal Service Fell Into A Financial Black Hole

Business model? It’s not a business. It’s a public service. It just needs to break even. Part of that issue is pre-funding obligations 75 years in advance. Who else does Congress require to do that? Nobody.

If the Postal Service is in a financial black hole, the Department of Defense is a supermassive black hole losing hundred of billions of dollars per year.

It has a broken business model because it's not a business. It's a service. When was the last time the Department of Transportation, Department of Education, or Department of Veterans Affairs was asked to turn a profit or even be "self-sustaining"?

How can you start with “the USPS loses billions a year” and not in the same breath also mention that Congress required them to cover the pensions of future retired workers for 75 years ahead of time?

The postal service is not a business ...

I saw this funny comment on a headline that said "USPS loses x billion dollars every year", someone was like "It's a service, you don't see a headline that says 'US Army Loses x billion dollars every year'"

The USPS isn't a business. People need to understand this. It is a service.

Why are they talking about the USPS as a business? The post office is not a business, it's service to the American people.

The post office is not a business. Government agencies are designed for the public good and not to generate profits. Public transportation is subsidized as well as entire states. Even for profit entities like airlines are subsidized by taxpayers. We have the best mail system in the world for a reason.

The retirement pre-funding requirement is unlike any business. Any fair comparison would require FedEx, UPS, and others to do the same, as well as requiring them to also deliver to every US address like the USPS. Fix the pre-funding mistake and add community banking and the USPS will be fine. Privatization would be a crime.

The postal service is labeled a “public service” and is labeled as such like the police force, firefighters, corrections etc. it is a government entity for the people and it is written in the constitution for that purpose so that citizens could have access to mailing across the US. It has been looked at as a private entity because leaders have forgotten it is an American right due to its constitutional origin. Due to this such a service just needs to break even to be honest. Even if it does not this does not matter. People just can’t sink in the idea that it’s not meant to be profitable but deliver service to the American people at every address as a constitutional right of service almost like a perk. The Government set restrictions as if it was completely a non profit government entity but expects it to run privately. That’s the biggest problem and why it’s NOT profitable IF profit is what you’re looking at.

The thumbnail title for this video is: "The Post Office's Broken Business Model." That's like making a video titled "Your local library's broken business model" or "The broken business model of the roads and highways we all pay for."

Rather disappointed that they failed to mention why the USPS has these looming obligations and the severe restrictions that have been placed on them. The USPS is the only company, by law, to Pre-fund the retirement health benefits to the year 2056 leading to over 5 billion in payments as included in the Congressional bill: H.R. 6407 (109th): Postal Accountability and Enhancement Act. This requirement, in addition to the restrictions on the sources of revenue USPS can pursue to the limitations of eliminating unprofitable delivery routes, regulated a once profitable company to be in the red. Privatization wont work and isnt the answer. Dont even get me started with Louis Dejoy...

It’s not a business, it’s a service. Not required to make money. It’s supposed to give people access to affordable communication.

Dam y’all really hate your mailman/woman. The post office is essential to many Americans. Keep in mind that just because you live in a city and are computer savvy, doesn’t mean that everyone else is. There are a lot of folks who depend on having their mail delivered. Also they provide jobs

It’s not a BUSINESS!! It’s a damn service we need. They need quit spending billions bailing out the cruise industry and airline industry!! Those are businesses. That’s their job. What if the post office was gone??

The US military doesn’t turn a profit, but it gets the job done. The USPS should be looked at the same way. Besides, thousands of veterans work for the USPS.

People need to stop pretending that USPS is a business. It's a Government agency, which is meant to provide a service for the country's citizens. USPS != FedEx or UPS. USPS shouldn't be making money on citizens. Running at "a loss" shouldn't be a problem. The benefits of USPS are beyond raising money. How much money does the Department of Homeland Security make the United States every year?

In Canada we switched away from door to door and have pick up super boxes. There was an outcry but now it’s accepted. It saved a lot of money and a good reason to take a walk.

the post office is NOT a business. It is a government institution that predates the constitution and 1 of the only institutions purposefully and specifically set up in the constitution. A necessity that is not supposed to make a profit