Craig Eyermann, Independent Institute – Re-Blogged From Headline Wealth
The government-run U.S. Postal Service began in 2020 with a dubious track record. It has lost money in each of the past 13 years.
In 2019, USPS made $514 million more in revenue than it did in its previous fiscal year, thanks to increases in postage rates and its package delivery business. But the agency also recorded a net loss of $8.8 billion, with 80 percent of that loss attributable to employees’ health-care benefits after retirement.
Losses stemming from retirement-benefits have occurred annually since 2006 when the U.S. Congress passed a law requiring the Postal Service to pre-fund the cost of providing its retiree health benefits, similar to how many businesses in the private sector are required to do.