Another government program coming home to roost
From the
Wall Street Journal:
Postal Service Registers $5.2 Billion Loss
The U.S. Postal Service on Thursday reported a $5.2 billion quarterly loss and said it was nearly out of cash and likely to exhaust its government credit line in coming months.
The agency said the loss was its largest since it began releasing quarterly financials in 2007. But Postmaster General Patrick Donahoe said the Postal Service would do whatever it takes to maintain its operations, even if that means defaulting on a second multi-billion-dollar retiree obligation in as many months.
"We will do everything we need to do to make sure the mail is delivered," he said. "Congress needs to act responsibly and move on this legislation." Losses and defaults will continue, despite cost cutting efforts, unless Congress passes a postal overhaul bill, Mr. Donahoe said.
The high cost of Union benefits. Negotiated when the economy was good and business was growing -- they come home to roost during economic turndowns.
If it wasn't for the
Private Express Statutes granting the Postal Service monopoly access to personal mailboxes and the right to deliver letters, they would have had to compete in the free marketplace and we would all benefit.
Posted by DaveH at August 9, 2012 3:41 PM