Postal Service Facing Huge Deficits


Another federally run program finds itself facing huge deficits. How many times must the same story be told before the average American wakes up to the failures of the federal government to run anything successfully. The only successful businesses in the United States are those which run on the free market principles of capitalism where supply and demand and open competition are the reins that control the business cycle. Those businesses that do not keep up with the demand at competitive prices are replaced by those which do. However when it comes to government run MONOPOLIES they always loose money, and will continue to loose money because there is no reason for them to be competitive.
clipped from www.onenewsnow.com

MailboxThe United States Postal Service is making bleak predictions about its financial future, leaving many observers to wonder if a taxpayer bailout is in the offing since Congress sets many of the rules the agency operates under.

Postmaster General John Potter released estimates yesterday predicting that the U.S. Postal Service could suffer $238 billion in losses in the next decade if Congress, regulators, and unions do not give the agency more flexibility in setting delivery schedules, price increases, and labor costs.
“The government has a monopoly on first-class mail services,”
‘m thinking that a lot of folks out there who enjoy their Saturday mail delivery — or might want Sunday mail delivery — might be willing to pay a price to a private firm to get such services. But they can’t do that because the government doesn’t allow any competition.”
the USPS is “weighed down” by unionized labor compensation and benefits, which make up 80 percent of the agency’s cost structure.

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