Is the Postal Service another failed government program?
The quasi-government agency announced this week that it lost $3.8 billion in the most recent fiscal year, which ended September 30th. It also delivered less mail - 26 billion fewer pieces less, a nearly 13 percent drop from the previous year. The bad news follows losses totaling $7.8 billion in 2007 and 2008.
The Postal Service, as it is quick to point out, is legally prohibited from taking tax dollars. But in order to stay afloat, the agency has been actively borrowing from the U.S. Treasury: At last count, according to Postal Service spokeswoman Yvonne Yoerger, it owes the government $10.2 billion.
Federal law dictates that the Postal Service can borrow up to $3 billion per year - but the debt cannot grow beyond $15 billion. That means that while the agency, which had revenues of $68.1 billion last year, could potentially borrow another $3 billion in 2010, it will soon no longer be able to legally borrow billions from the government.
- Anonymous1 decade agoBest Answer
Not really. The more people use the internet for sending and receiving letters, the less mail they will have. However, the day may come when we will see 75 cent for first-class postage. To think that it took almost one hundred years for postage to reach 8 cent... However, from 1967 to present, price wise in comparison, the price of first-class postage is becoming more and more like a run-a-way freight train.
Last time, or time before last when postage went up 1 cent, that was just enough to cover the cost of some party they gave to the retiring Post Master General. Now that wasn't right. I remember reading about that 2-4 years ago.
But th PO shouldn't be allowed to borrow money.
- EmLv 61 decade ago
USUS has been around for a long, long time. I'd hardly call it a failed government program. It's still operating, and getting the mail delevered on time. Yes, there are fiscal problems for the moment, but that hardly qualifies it for the trash heap as a 'failed government program." Give credit where it's due.
- Sally says...Lv 61 decade ago
And ever failing. and now that we regular peeps use the internet to pay bills, (no stamps) and send packages, the government run postal service is really screwed!
- Anonymous1 decade ago
USPS provides a good service and compared to mail delivery around the world they do an exceptional job in getting it there thank you very much.
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- Anonymous1 decade ago
Billion is debt qualifies it to be a failure and an example to come for the socialist in chief's agenda!!!!
- Fed ELv 41 decade ago
Since when was the Postal Service a "program" it sounds more like a service....
- 1 decade ago
Everything the government makes is a failure.
- Smooch The PoochLv 71 decade ago
Part of their problem is again, unionization. Unfunded liabilities!!
- QuanLv 71 decade ago
My mail is always on time. I hate my mail lady though. She is such a betch. Other than that, I have no problems.
- accretionLv 61 decade ago
they bring my mail every day
I am happy with it