Will the Post Office Survive?
Last year, the Post Office lost more than $8 billion. That was after cutting 110,000 workers and $12 billion in costs.
In 2010, retirement benefits cost the Post Office $7.7 billion, of which Congress requires that they prefund $5.5 billion. As a result, they started the year almost $6 billion in the hole. Not a great recipe for running a business.
The Postmaster talked about closing plants, laying off workers and suspending payments to their pension plan in the middle of last year. Congress stepped in and made them delay taking these actions - so the Post Office continues to bleed. It's tough enough to run a business, but with politicians in the way - it's got to be really tough.
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