JLF Triangle Blog

U.S. Postal Service An Absolute Financial Debacle

Yesterday the Senate, as CNN puts it, “passed a plan to save the struggling U.S. Postal Service.”  The story details why the bloated, inefficient postal service is in such a mess, including this gem:

The Senate also agreed to cap executive pay of high-ranking postal officials to that of Cabinet officials, $199,000. (Postmaster General Patrick Donahoe made $384,000 last year.)

The cost of the Senate bill could prove a major sticking point with the House. The Congressional Budget Office says the bill would cost $33.6 billion over 10 years.

The tab comes from increased borrowing authority for the Postal Service, allowing it to borrow $11 billion more from Treasury. The Postal Service can currently borrow up to $15 billion, and has tapped $12 billion of that loan.

 

Isn’t it obvious it is well past time to allow competition for mail services? In the real world – yes. In Washington – no.

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