The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances. ...
As any computer user knows, the Internet revolution has led to people and businesses sending far less conventional mail.
At the same time, decades of contractual promises made to unionized
workers, including no-layoff clauses, are increasing the post office’s
costs. Labor represents 80 percent of the [U.S. Postal Service's] expenses, compared
with 53 percent at United Parcel Service and 32 percent at FedEx, its
two biggest private competitors. Postal workers also receive more
generous health benefits than most other federal employees.
--Steven Greenhouse, NYT, on our nearly insolvent postal service