Following a tweet from President Trump today where he called out Amazon and the United States Postal Service, Breitbart News investigated Trump’s claims.
“Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!” Trump said in a tweet posted on Friday.
Trump’s claim that the USPS is losing billions of dollars is entirely correct, in 2016 the USPS announced a $5.6 billion net loss and in 2017 stated a $2.7 billion net loss, making this the eleventh year that the Postal Service has announced a loss. The total from 2007-17 amounts to a staggering $65.1 billion in losses. Things do not seem to be looking up for the organization anytime soon, with the USPS predicting in their public 2018 Integrated Financial Plan that they would suffer a net loss of $5.2 billion in 2018. With mail volume at a 29 year low and amassing large amounts of debt, the Postal Service is facing a tough time ahead.
A Citigroup analysis in July of 2017 found that a subsidy of $1.46 was attached to every Amazon package delivered by USPS due to the Postal Service delivering the company’s packages below their own costs. It was determined in 2007 by the Postal Service and its regulator that a minimum of 5.5 percent of the Postal Service’s fixed costs must be allocated to package deliveries. Ten years later, despite 25 percent of USPS’s revenue coming from packages, the percentage of fixed costs allocated to packages has not increased enough to become profitable.
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9 comments:
Upgrade the process to be like UPS and ditch the old system
Typical government operation,bureaucrats don't know anything about running a business,besides it's not their money they are losing. Thank God and the Republicans we have a business man in the white house.
The Post Office is giving Amazon and other retailers a reduced rate but anyone else who ships packages is paying dearly and the rates are going up again so once again Small Businesses are being screwed.
DRAIN THAT SWAMP!
Prevent "doin" what we've always been "doin" because it doesn't make sense!
Making America Great Again and not run by the PC crowd anymore! THATS when all hell broke loose!
I have always said USPS is a junk mail subsidy. Proud of Trump for speaking up on this!
It takes a business head to run the USPS. We evidently don't have the sharpest heads in charge of the operations. Time to step in, Mr. President.
Amazon is a part of intelligence.
Just like Apple, Microsoft, and Comcast
It won't be long Amazon cuts out the middleman in many areas. Some more populated areas they already have.
Uh 9:10PM don't be so dumb, all big corps are part of the intelligence side of things... get that???? ALL BIG COPRS!!!!!!
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