Home > Budget, Healthcare, Simple Explainations, Taxes, Uncategorized > The Post Office – The Myth

The Post Office – The Myth

There has long been a myth, that the post office is run at a profit and like a successful business.

It isn’t.

I read today that last year the post office had losses of 8.5 billions dollars and congressional ‘red ink’ prohibits them from closing an unprofitable office due to unprofitability. Yes, that sounds like a successful business.

Some 16,000 of the 32,000 ‘brick and morter’ post offices didn’t turn any profit last year. The post office would like to close about 2000 of the worst ones but, it can’t.

Think about that the next time you hear the post office held up as an example of government efficiency. If this were a real business instead of a government agency it would have been bankrupt and had its parts sold off to highest bidder long ago.

They can raise rates and price themselves out of the market and cause even worse budget issues or we can give up the myth and either accept it as another inefficient part of government or start running it like a business.

This is the agency Obama compared a ‘public option’ health care plan to. Sounds about right Mr. President, but I’m not sure that’s what you were going for when you made that comparison.

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