Fact checker refutes Trump claim that the Postal Service loses money on every e-commerce package it delivers - Entrepreneur Generations

On April 24, President Trump told reporters that "the Postal Service is a joke because they’re handing out packages for Amazon and other internet companies. And every time they bring a package, they lose money on it."

But that's untrue, writes Glenn Kessler, editor of The Washington Post's Fact Checker, and it matters because "President Trump is threatening to veto financial aid for the beleaguered U.S. Postal Service unless it hikes the price it charges for delivering packages — which he said should be quadrupled."

USPS is losing money overall, mostly because more people send emails than snail mail these days, and because Congress requires it to prepay pension and health benefits for its employees, Kessler writes. The Postal Service is also at a disadvantage because it can't increase the charge to send first-class mail, even when that mail is more expensive to deliver. 

However, package delivery is an increasing money maker for USPS; 32 percent of its operating revenue in Fiscal Year 2019 came from shipping and packages, up from 28% in 2017. Package delivery is also increasing in volume, from 3.8% of its total volume in Fiscal Year 2017 to 4.3% in 2019.

"Of course, revenue is not profit. And we do not know the details of the contracts between USPS and Internet retailers. But USPS says it has been raising prices," Kessler reports.

from The Rural Blog https://ift.tt/2xY6N8E Fact checker refutes Trump claim that the Postal Service loses money on every e-commerce package it delivers - Entrepreneur Generations

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