Last week, the U.S. Postal Service announced that it ended the third quarter of FY2010 with a net loss of $3.5 billion, a full $1.1 billion more than the same quarter last year (that’s approximately a 50% increase, for those of you keeping score at home.) Bear in mind, this comes despite the fact that in 2009, “capital contributions of the U.S. government” totaled over $3 billion (p. 84).
Aside from the obvious culprit (the interwebs! Curse you, tubes!), the USPS also faults mounting pension obligations. The size and scope of the benefits, however, isn’t to blame – but rather, the requirement that benefits be pre-funded. (Paying for obligations? Oh, the horror!)
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