Postal Monopoly Bailout Ahead! $9.18 Billion Loss in 2020 – Not Because of the Pandemic – 5 Things You Should Know

Craig Huey Economics, Government, Congress, and Politics, Taxation 3 Comments

$9.18 billion loss…but not because of the pandemic.

That’s how much money the post office lost in 2020.

Here are 5 things everyone should know:

1. Despite raising postage rates and a 2.8% increase in revenue over 2019, the post office ended up with an unbelievable and unsustainable $9.18 billion dollar loss.

The increase in revenue largely came from the historic pandemic surge in e-commerce – the shipping of packages.

2. Last year’s postage increase helped drop total mail revenue and volume.

There were 129.17 billion pieces mailed, a drop of 9.4% from 2019.

First class fell 4.2% to 52.62 million pieces.

Direct mail dropped 15.2% to 64.14 billion pieces.

Part of the drop was due to the pandemic, even though response rates increased during this time.

Another part of the drop was the postage increase, as mailers decreased their direct mail marketing budgets because of the higher costs.

In shipping and packages, revenues rose 25.3% and volume increased 18.8% — to  7.32 billion packages.

3. Expenses for the post office are out of control. Total expenses increased 2.9%, including $1.2 billion for new employees, overtime and sick leave.

The postal union opposes all reforms to make the post office more efficient… including stopping frivolous overtime. Even making the operation run like a real business.

The new Postmaster General Louis DeJoy tried some small, logical moves that resulted in massive protests nationwide and a political campaign to halt all necessary reform.

4. The goal is to have a taxpayer’s bailout of the postal service, not to implement necessary structural reform.

Political and union efforts to bail out the total $74 billion dollar debt are intense.

5. The only way to solve this problem is to allow competition and privatize the postal service. That will create the necessary turnaround.

What do you think? Let me know at

Comments 3

  1. I wonder why no one complains about the loss police and fire endure?

    If one treats the USPS as a service similar to police and fire, then complaints would stop. Even better, why not treat the USPS as a public service and not charge for the service? This would please, no end, commercial organizations.


  2. My husband is a retired postal worker. Hate to think what will happen when government gets more involved. What will the new political government require of us to continue to receive our checks… Stay tuned !

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