Contrary to some popular beliefs, USPS is not being out-competed by private companies like FedEx (a USPS contractor) or the internet. Its pricing for junk mail is not draining its coffers.
The USPS is highly efficient and competitive with private companies. It would be entirely in the black right now if not for one thing:
budget-killing rules enacted by a Republican congress under the Bush administration in 2006 that forced USPS to divert an excessive amount of its operational funds to instead fund FUTURE employee pensions--including future pensions for future hires.
No other organization, public or private, funds future pensions--even for employees
not yet hired--in this manner.
But putting USPS into a GOP-manufactured "crisis" sets it up to have to cut services, further reducing its ability to compete...until you can "drown it in a bathtub."
If USPS goes down and mail service becomes fully-privatized, the unions that are now representing and protecting postal workers also go down. For conservatives, what's not to love?
The "necessity" of closing post offices and cutting Saturday delivery is a sham "fix" that will only kill the USPS and the unions.
The only solution that will save the USPS and the unions is a legislative one. The GOP's pension-funding rules imposed on USPS must be repealed.
A simple internet search will turn up more information about the background of the issue and how the GOP succeeded in passing rules designed to kill USPS and postal workers' unions.
But I think this LTTE from one local union official, published just yesterday in the Chicago Trib, pretty much nails it:
USPS can keep Saturdays1:00 p.m. CDT, August 5, 2011
If one was to believe the recent propaganda by the Postmaster General, you would think the internet, the economy and the declining mail volume has made the United States Postal Service (USPS) unprofitable- thus they must eliminate Saturday delivery and close local Post Offices in order to survive. This is simply not accurate.While it is true that mail volume has declined over the past ten years, the Postal Service, with cooperation from its labor unions, has made the appropriate business decisions to remain competitive and efficient.
The real reason behind the "loss" of billions is a law that requires the Postal Service to pre-fund its future retiree's health benefits for the next 75 years. That mandate, enacted during the Bush-era (2006), requires this to be done in ten years.That's right – the USPS is required by law (not by its labor unions) to contribute over $5 billion annually to pay for the
future health benefits of carriers and employees that have yet to be hired. The National Association of Letter Carriers is aware of this, which is why
we have been working hard to get Congress to relieve the Postal Service of this unreasonable and unfair burden. No other company in the private or public sector is required to do this so neither should the Postal Service. ....
...
....
The Postal Service is still very relevant and for only 44 cent a stamp we don't require a dime of your tax dollar! If it was not for the congressional mandate to pre-fund our retirement, the Postal Service would have seen profits of over a half a billion dollars over the past five years. Right now the United States Postal Service does not need to close post offices, reduce services or a bailout -- we just need Congress to fix the law that is breaking your Postal Service.-- Mack I. Julion , President, National Association of Letter Carriers, Branch 11- Chicagohttp://www.chicagotribune.com/news/opinion/letters/chi-110805julion_briefs,0,2889672.story 
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