The US Postal Service is NOT Too Big To FailSubmitted by McWilly on Tue, 07/31/2012 - 15:42
The latest financial report is out from the U.S. Postal Service, which is forecasting two massive defaults on employee health benefits in the very near future. One totaling more than $5 billion that is due this Wednesday and one due in September that is over $5.6B. Don’t get me started on how the government has made ridiculous promises to its workers, who regularly retire far earlier than private sector employees and with absurd retirement packages. That’s just beating a dead, financially toxic horse and it’s common knowledge at this point.
What you think would also fall under common knowledge, or more likely “common sense” would be that keeping a bloated, antiquated branch of government open in its current state, despite its continued bleeding out financially is a horrible idea for a country that is already setting records for national debt. The still-terrible plan to bail out the banking industry was due to their being deemed “Too big to fail.” They had their sticky fingers in so many pots and employed so many people that politicians couldn’t stomach the economic earthquake that letting the market right itself would have caused. The Post Office does employ a large number of Americans itself – the USPS website numbers the total at 546000. However, with annual budget shortages ($5B loss last year) and an additional projected 30% loss in revenue through 2016 (where it will get even worse) mean that this is a sinking ship with zero chance of righting itself.