Space Travel News  
TRADE WARS
Could virus crisis kill debt-laden US Postal Service?
by Staff Writers
Washington (AFP) Apr 17, 2020

.

For many Americans, checking the mailbox is a daily ritual, a constant in a quickly changing world that can yield anything from wedding invitations to tax audits to new clothes.

But as with many ordinary things as the coronavirus crisis unfolds, the US Postal Service - already compromised by a mountain of debt - has a most uncertain future.

"The Postal Service is holding on for dear life," congresswoman Carolyn Maloney, a New York Democrat who chairs the House Oversight Committee, said last week.

"Unless Congress and the White House provide meaningful relief in the next stimulus bill, the Postal Service could cease to exist."

So how did an agency that traces its origins back to the Continental Congress in 1775, and counts Benjamin Franklin as the first postmaster general, find itself being derided by President Donald Trump as a "delivery boy" for Amazon?

The answer is cloaked in a swirl of past budget decisions, consumer shifts toward a digital world, a crisis-induced drop in volume and good old-fashioned political infighting.

- Piles of debt -
From its beginnings in Philadelphia, through the 19th century Pony Express era, to its modern iconic white vans and blue uniforms, the postal service has been an American mainstay.

Among its famous alumni are aviator Charles Lindbergh, actor Rock Hudson, novelist William Faulkner and hotel magnate Conrad Hilton.

Zip codes for each city, town and village were only introduced in the 1960s, but some have become pop culture touchstones - most people know that Beverly Hills, California is 90210.

Before the pandemic sent volume tumbling, more than 180 million pieces of first-class mail were processed and delivered each day on average, according to USPS data.

"The mail is so important to American families," says Democratic House Speaker Nancy Pelosi.

So what happened?

Over the years, the service accumulated a veritable mountain of debt - $160.9 billion, as of the end of 2019.

That is primarily due to a legally mandated need to pre-pay retirement benefits for its more than 600,000 workers, but other factors are in play.

The advent of the digital age has blunted the USPS's mission - why send a thank you note when an e-card or text message will do?

For younger generations, buying stamps is as foreign as using a telephone to actually talk to someone.

So in recent years, it boosted its package deliveries, taking on mega-clients such as Amazon. But it kept bleeding money.

And then, the coronavirus crisis brought mass mailings - catalogs, coupons and the like - to a grinding halt. Sales of postal products and services plummeted.

Postmaster General Megan Brennan told lawmakers last week that the USPS expects to lose $13 billion in revenue this fiscal year alone as a direct result of the COVID-19 crisis.

"The sudden drop in mail volumes, our most profitable revenue stream, is steep and may never fully recover," she said in a video briefing.

- Political football -
However, as the US government unveils massive stimulus packages to help a host of industries, the postal service is not exactly on Trump's A-list.

Trump has repeatedly said the cost of shoring up the agency should fall to its deep-pocketed clients such as Amazon, not the government.

Under aid packages passed by Congress so far, the postal service has been given a $10 billion loan, pending Treasury approval.

But officials and many Democrats say it's not nearly enough.

Brennan asked lawmakers for up to $89 billion to weather the storm.

Lawmakers cite the service's delivery of medications to rural areas - and its possible key role in November's presidential election thanks to mail-in ballots - as reason enough to help.

"USPS workers have risked their own health to ensure America keeps running" during the crisis, Senator Elizabeth Warren tweeted, using the #SaveThePostOffice hashtag.

New Jersey lawmaker Bill Pascrell chimed in, calling the USPS an "engine for our elections" and the need to save it "nonnegotiable."

But Trump and many Republicans want to see the USPS privatized to a large extent - and are not keen to offer a more costly lifeline.

"They lose money every time they deliver a package for Amazon or these other internet companies," Trump told reporters this month.

"And if they'd raise the prices by actually a lot, then you'd find out that the post office could make money or break even. But they don't do that. And I'm trying to figure out why."

For Mark Dimondstein, the head of the American Postal Workers Union, which represents some 200,000 members, the government needs to do more.

"We do our job. Congress and the administration need to do theirs," Dimondstein said.


Related Links
Internet News
Global Trade News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


TRADE WARS
EU aims to bar 'predatory' takeovers of weakened firms
Brussels (AFP) April 16, 2020
EU trade ministers vowed on Thursday to protect strategic European companies weakened by the virus-triggered downturn from "predatory" takeovers. A statement following the discussion held by videolink did not identify potential threats but participants later made it clear China was the main source of concern. "With some companies having lost dozens of percentage points off their value, it is important that we can ensure there is no predatory takeover which would not be desirable," France's junio ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
TRADE WARS
Mars Helicopter attached to Perseverance Mars rover

Choosing rocks on Mars to bring to Earth

NASA's Perseverance Mars rover gets its wheels and air brakes

Bacteria in rock deep under sea inspire new search for life on Mars

TRADE WARS
Help Pave the Way for Artemis: Send NASA Your Mini Moon Payload Designs

Apollo 13's 50th anniversary recalls NASA tragedy turned triumph

NASA awards contract to deliver science, tech to Moon ahead of human missions

When the Moon dust settles, it won't settle in VIPER's wheels

TRADE WARS
Mysteries of Uranus' oddities explained by Japanese astronomers

Jupiter's Great Red Spot shrinking in size, not thickness

Researchers find new minor planets beyond Neptune

Ultraviolet instrument delivered for ESA's Jupiter mission

TRADE WARS
Salmon parasite is world's first non-oxygen breathing animal

Origin of the first known interstellar object 'Oumuamua

NASA selects early-stage technology concepts for new, continued study

Humans are not the first to repurpose CRISPR

TRADE WARS
Pandemic delays New Zealand launch of three US Intel satellites

Dragon returns to Earth with science payloads from ISS

Space Force announces its first pandemic-related launch delay

SpaceX's Dragon splashes down after trip to space station

TRADE WARS
Parachutes guide China's rocket debris safely to earth

China to launch IoT communications satellites named after Wuhan

China's experimental manned spaceship undergoes tests

China's Long March-7A carrier rocket fails in maiden flight

TRADE WARS
Rehearsal Time for NASA's Asteroid Sampling Spacecraft

Journey to a metallic world called Psyche

Researchers zero in on Near-Earth Asteroid deflection simulations ahead of breakthrough mission

Astronomers reveal source of 'red sign' in ancient Japanese literature









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.