It turns out that commercial package delivery for e-commerce retailers such as Amazon was actually profitable for the USPS. Revenue from delivering packages increased in 2018. The problem is that revenue from first-class mail, which is still the biggest source of the USPS’s revenue, continues to decline even as labor costs continue to increase. In 2018, labor costs accounted for 76 percent of overall operating costs, and especially the pension and health benefits provided to each of the USPS’s retired government employees.
Lost in all of this is the real problem with the Post Office, specifically the postal monopoly and, to a larger extent, the fact that the federal government is involved in the postal business.
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Have to blame Ben Franklin for this mess. He was the advocate for a Post Office. He did OK with fire insurance, bifocals, and a lot of other things. But he really did realize what boondoggle this would become!
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