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Between the mandated benefit prefunding (that none of USPS's competitors are subject to) and the union contracts and work restrictions that need to be voided, combined with nanny Congress, the USPS is hamstrung.
The USPS tries to remedy the shortfall by cutting back delivery (note: only *DELIVERY*... post offices would still have been open 6 days and PO boxes would still have gotten 6-day delivery), and Congress gets into a snit.
If I were the Postmaster General I'd throw my hands up and say to Congress "Fine. We have no choice. USPS is filing for bankruptcy. You idiots fix it."
Frankly, I would have been perfectly ok with home delivery 5 days a week.
Don't you love the way they say " We're not going to bail you out, but at the same time you must become fiscally solvent without changing anything you currently do."
And in reality, they haven't given them any kind of bailout. The USPS has just missed the last few prepayments on benefits/pension. Considering Congress mandates they prepay 70 years in advance, I think that just means they're now only 69 years ahead of every other government agency.
I think the real money now is in shipping packages, not first class letters. If the USPS could do 2 day delivery, and land most major online retailers like
Amazon through lower prices, they could generate some serious revenue.