The U.S. Postal Service’s financial health may be too fragile to fight the coronavirus.
The volume of first-class mail, the agency’s main source of revenue, has been declining for years, and the coronavirus has accelerated the downward trend. At a time when people are increasingly ordering online, one might think that the surge in package deliveries would offset these losses. Unfortunately, debt obligations tied to pre-funding retiree benefits 75 years into the future have made it impossible for the USPS to remain solvent. Should it get bailed out like so many other organizations?
Video Spotlight: COVID-19 and the USPS
This post is based on the NBCNews article, Could Coronavirus Deal a Fatal Blow to the U.S. Postal Service?, by A. García-Hodges and H. Talbot, April 15, 2020, and the YouTube video, The Impact COVID-19 Is Having on the US Postal Service, by WGN News, April 16, 2020. Image source: BassittART/E+/Getty Images.
1. Besides the 2006 Postal Accountability and Enhancement Act, what are the reasons why the USPS experiences chronic, financial problems?
Guidance: The reasons include: decreasing volumes of first-class mail due to the rise of email; universal service to all urban and rural Continue reading