This isn't really accurate. USPS had a break even (not profitability) legal mandate since 1970-2006. They would adjust prices each year to hit break even. And that's what happened - they roughly broke even each year.
After a 2006 with broad bipartisan support, the UPS was able to make a profit (not just break even) but a price cap was added (to be reviewed every 10 years). They couldn't raise costs beyond inflation. A stamp to send to anywhere in the USA - anywhere (Alaska, Guam, etc.) - currently costs 82 cent. The postal union is against this, usps management is against this, and business mailers are for it. Dont you love all the ads USPS delivers you?
They have not been break even since 2007. They currently lose about $9B/year with $2.7BM being controllable and the rest largely being pensions, retiree health plans, and workers comp charges. Their core business (mail) has been declining for 20 years and no end is in sight. In 2020 they loosened the cap a bit (allowing USPS to raise prices). Business mailers tried to sue them but lost.
So this attitude that they should just lose a bunch of money and be backstopped by the taxpayer, when mail is less critical than ever, is an recent idea and is aligned with business mailer lobbying interests. It seems obvious to me that they should just go back to the break even mandate.
I was confused by this until I realized you are missing some logical steps in your (accurate) argument.
The 2006 law took away the safety net (ie the ability to charge whatever is needed to break even).
The “you can now make a profit” rule actually made it HARDER since it came with a price cap.
It told the USPS: You can keep any profits you make, but you cannot raise prices above the rate of inflation to get them.
This forced the USPS to absorb rising costs through internal efficiency rather than passing the bill to mailers
By no means was I implying that the ability to profit means they did profit. Im just stating what the law was.
No because they are still deep in the red, about $9B a year.
US Military costs ~$1T/year and the Pentagon hasn’t passed an audit in the last eight years, comparatively, but not a lot of similar complaints of that waste versus pensions for workers operating and serving a national public service agency.
https://www.militarytimes.com/news/pentagon-congress/2025/12...
Electrifying the USPS light vehicle fleet is expected to generate up to $4.3B in lifetime savings over the fleet lifecycle, similarly.
https://huffman.house.gov/media-center/in-the-news/electrify...
https://atlaspolicy.com/federal-fleet-electrification-assess...
USPS and the US military are both, at their heart, logistics engines and systems, and both should be valued as such. "The whole is more than the sum of its parts." If you do not maintain and treat said systems with respect, the capability will not be ready when you need it, or will not contribute to the ongoing success of the jurisdiction in which it operates. The only difference between the two is that the US military happens to fight wars with what its logistics operation it provides itself.
The unsung role of logistics in the US military - https://news.mit.edu/2025/unsung-role-logistics-us-military-... - November 25, 2025
True, but isn't this because everyone knows that USPS is a dying business already?
It’s weird how people bring this up. It was very unusual for the usps not to have to set aside money now to pay for pensions in the future.
Also the 2022 Postal Service Reform Act eliminated the prefunding and ~$57 billion of overdue payments, but USPS finances were still dogshit afterwards: USPS revenue was $80 billion and expenses were $89 billion in FY2024
The (non-navy) military has no constitutional mandate at all, it’s an industrial scale cash incineration device which the postal service can’t hold a candle to, and we don’t blink at it wasting 10x or more of the postal service’s opex.
(I have all my mail sent to a CMRA and basically never see any of this stuff, though.)
Not when combined with the idea that spam mail senders should be legislated out of legality.
People receive tons of mail, it's just packages. The USPS handles packages, but we've allowed it to be replaced by labor-unfriendly private organizations like UPS and Amazon.
> is an recent idea
> This isn't really accurate. USPS had a break even (not profitability) legal mandate since 1970-2006.
No, the idea that USPS should break even is a recent idea. 1970 is recent.
The only steel-man argument is that USPS provides coverage for that last 1%, living in the boonies, unable or unwilling to use a computer. But that’s at huge cost to everyone else, so much so that we should just give those people a computer and a 1Mbps Starlink connection for free to enable us to get rid of USPS.
but that "value of being cheap" is provided to the people using the mail (or other delivery services) for that transaction; it does not benefit people who are not involved in the transaction but have to pay the subsidy. The economy operates most efficiently when things cost what they should or as close as possible.
what Microeconomics is about is calculating what is cost efficient and what is not; free mail services are not; less free mail services are not; rationally priced mail services are.
When things cost as close as possible to their MARGINAL cost. The marginal cost of mailing a letter is very low, almost certainly closer to $0 than $0.83, especially if you accept letter carriers have to run their route every day regardless.
The problem of course is the USPS has enormous fixed costs, including I would argue the pensions (honestly not sure how they would be accounted for in a GAAP sense, I'm absolutely not an accountant)
Federal funding has long distinguished between the two for other things like transit. You're only allowed to use federal funds for capital expenses, not operational expenses. USPS getting a taxpayer subsidy for their fixed costs doesn't seem that nuts.
I think I've received two letters in the last year. I haven't received any individual junk mail letters.
The letter volume last year was 90M for 6M people, so about 15 each. I assume elderly people and others who have opted out of receiving government and business mail digitally drive that number up.
(Someone still delivers a bundle of leaflets from local businesses all together every month or so, and a local newspaper, but I don't think it's the postal service. Every home gets the same bundle.)
I personally get a massive benefit from USPS being cheap, despite the fact that I send no mail. It provides a massive low-cost physical delivery network across the country, with service to every address. This is a benefit to me because it makes business and personal communication simple and reliable. If I need it personally, it's there. If I don't, I still rely on thousands of parties who do.
Your position is like claiming the interstate system is useless because you don't have a car, ignoring how all those goods your life relies on actually get to you.
Maybe you're an autodidact like many other engineers, and maybe you would have done better without schooling. Such people are a minority.
Like many, I think you're confusing "the school system is flawed" (it is) with "school bad."
If the schools in a given country were pumping out geniuses year after year then maybe you would have a point.
The unintended consequence of this is all the junk mail that makes regular mail a horrible experience to interact with.
Raise the prices , remove the spam.