We’ve described the Postal Service as America’s last dinosaur and this week, Biden and Congress threw it yet another financial lifeline to delay its inevitable extinction.
The Postal Service is by law required to be a self-financing operation, but in the last two years alone it has lost $15 billion. Postmaster General Louis DeJoy admits losses over the next 10 years could reach $160 billion.
USPS should be slashing costs and employees. Instead at the behest of the Postal unions, Congress ratified a hocus pocus accounting “reform” to make its losses magically disappear off the balance sheet.
Congress will now stop requiring the letter carriers to prefund their gold—plated and underfunded multi-billion dollar employee health benefits.
But this is absurd because EVERYONE knows that the Postal Service won’t have anywhere close to the money to ever pay for these benefits. And EVERYONE knows who will ultimately pay these benefits: taxpayers.
Rep Carolyn Maloney (D, NY) gushes that Congress’s Bernie Madoff accounting gimmick will “finally put USPS on a sound financial footing.”
Uh huh. Sure Carolyn. We believe you.