Trump Signs Executive Order to Review US Postal Service Finances
In the latest of a series of jabs at Amazon, President Donald Trump issued an executive order for a review of the U.S. Postal Service, which he falsely claims is losing money because of its service to Amazon.
“The USPS is on an unsustainable financial path and must be restructured to prevent a taxpayer-funded bailout,” he says in the order. It creates a task force to “conduct a thorough evaluation of the operations and finances of the U.S.P.S.”
While Amazon itself is not named in the document, the president is seeking to prove his claim that Amazon is losing money on its arrangement with the Postal Service, which delivers more of the company’s than any other service.
Earlier this month, 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.”
Meanwhile PolitiFact reported that was false, and the $65 billion loss seen by the Postal Service, which was again cited in Trump’s executive order, was largely due to a 2006 law mandating that it pre-fund health benefits for future retirees. That law cost the agency $5.6 billion per year.
In terms of its revenue, parcels accounted for $19.5 billion during 2017, nearly 30 percent of its yearly income. Packages also were responsible for its largest revenue increase from the previous year.
To further illustrate Amazon’s role, the company takes credit for $7 billion of the $19.5 billion increase, showing it indeed has a positive affect on Postal Service revenue. Nonetheless, the president continues to stand by his claims.
[Image via screengrab]
