Federal Government Makes $10 Billion Loan Available to Failing Post Office

It’s not a grant (wink, wink), it’s a loan. And they don’t need it (yet), so don’t worry.

Acting on part of a previous relief package, the U.S. Treasury finalized a deal that creates a loan of up to $10 billion for the U.S. Postal Service (USPS). Treasury Secretary Mnuchin said the USPS doesn’t need a loan at the moment, but this will make the funds available should the agency find itself strained financially.

Given that the USPS is strained financially every year as it teeters under the weight of exploding pensions and artificially low prices, it’s all but certain that it will need to tap the money. And given that the USPS runs a multi-billion dollar deficit every year, calling this a loan is an insult to other borrowers. The postal service will never pay the money back.

Call it what it is, a gift from all taxpayers to the pension funds of postal workers. If the agency were set up correctly, it would charge more for all the junk mail and parcels it delivers, but postal rates must be approved by Congress so… you get the picture.

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  1. John Alder

    USPS is an organizational and operational disaster. If it were a business operating in a competitive market it would have failed years ago.
    Case in point, several weeks ago a package was shipped from Austin TX to my home near Tyler TX, a little over 200 miles. I took eight days to arrive. This “Priority Mail” package was under one pound. USPS tracking could not tell me were it was or when it would be delivered.
    Now the American People are being told to vote by mail, what a joke!

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