The US Postal Service Is subsidizing billionaires who sell by mail.
Donald Trump called out the Postal Service for subsidizing billionaires, specifically pointing to Jeff Bezos, the founder of Amazon and owner of the Washington Post.
Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!
— Donald J. Trump (@realDonaldTrump) December 29, 2017
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It is not just unfair to taxpayers who will be required to bail out the USPS. The playing field between online retailers and traditional retailers should not be made uneven by government subsidy.
The USPS has posted losses for 11 straight years, largely on the basis of gigantic legacy pension and health care costs.[…]
An April report from Citigroup found that the fast pace of change in the shipping business has left the USPS struggling to allocate its expenses correctly.
Bureaucrats have fixed the share of infrastructure costs associated with packages at a 5.5 per cent, but package shipments now make up 25 per cent of the USPS’s business.
Factoring in the actual expenses associated with delivering more packages than their price model allows for, boxes should cost postal customers $1.46 more than they do, on average – building the equivalent of a government subsidy into the final price.
‘It is as if every Amazon box comes with a dollar or two stapled to the packing slip — a gift card from Uncle Sam,’ a Wall Street Journal commentator wrote in June.
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