News or Noise: Is Amazon jeopardizing the U.S. Postal Service?

April 12, 2018 12:11 AM

Another Twitter post from President Donald Trump is making waves. He posted that Amazon is jeopardizing the U.S. Postal Service. 

President Trump wrote that Amazon is costing the USPS massive amounts of money, and that it's costing tax payers.


On April 2, President Trump tweeted:

“Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. THEY LOSE A FORTUNE, and this will be changed."
President Trump didn’t stop there, and tweeted this the next day:

"I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy. Amazon should pay these costs (plus) and not have them borne by the American Taxpayer. Many billions of dollars. P.O. leaders don't have a clue (or do they?)!"

However, these tweets contradict sources that argue otherwise.

The USPS shared details of a $2.7 billion net loss in 2017, its eleventh straight year of fiscal decline.   However, once the numbers were examined, it showed paper mail revenues were down, but shipping and package delivery revenues increased. The elevated numbers are in thanks to companies like Amazon.
Although we'll likely never know exactly how much Amazon is paying USPS, it's safe to assume that the agency is not losing money as President Trump suggests.  Federal law requires the revenue for each product shipped through the United States Postal Service to cover its attributable cost.  Furthermore, the balance sheet is monitored by the Postal Regulatory Commission to make sure everything adds up in the budget.
The USPS has been on a downward spiral for a while now.   However, the President Trump's claim that Amazon is the reason the Post Office is in financial trouble is all noise.  


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