OpEd: Financial collapse of the United States Postal Service is coming

As the most reliable and balanced news aggregation service on the internet, DML News App offers the following opinion editorial written by Kevin Kosar and published by TheHill.com:

The United States Postal Service (USPS) will run out of cash in five years. Postmaster General Megan Brennan shared this news in testimony before the House Oversight and Reform Committee earlier this month. The immediate consequence of USPS becoming insolvent would be that the world’s largest postal system — which moves 150 billion mail pieces per year, or 412 million pieces per day — would be dead in the water. This is something that has never occurred in the Postal Service’s long and storied history.

If you think these primary effects would be devastating, the secondary effects would be catastrophic. More than half a million postal workers would be without wages. Magazine companies, which send millions of glossies per month, would be stuck trying to find local deliverers. Retailers — particularly those that sell via catalogs — would see their main advertising medium vanish. The paper and printing companies they work with would see their revenues plunge. Prescription drug deliveries would be disrupted as sellers scrambled to find alternate means for delivery. Jury summons, voting materials (including ballots for overseas troops), and international mail and shipments would stop flowing.

The article goes on to state the following:

During the hearing, Rep. Mark Meadows (R-N.C.) demanded USPS produce a turnaround plan by July that would save the Postal Service. To date, the agency’s plan has consisted of trying to trim costs, mostly by reducing the hours worked by workers, and reaping more revenue by delivering more parcels. As Postmaster General Brennan noted in her testimony, these efforts have not solved the problem.

USPS is in dire financial straits because its revenues are insufficient to support its operational costs and long-term liabilities. Mail volume is down 31 percent since 2007, and the agency’s revenues ($72 billion per year) are the same as they were a decade ago. The agency has around $120 billion in unfunded debt and obligations, most of which flow from compensation and benefits owed to its huge cohort of workers and retirees.

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