President-elect Donald Trump is considering privatizing the US Postal Service as the agency continues to face significant financial losses. According to reports, Trump has discussed this issue with Howard Lutnick, his pick for commerce secretary, at his Mar-a-Lago residence in Palm Beach, Fla.
The Postal Service reported a staggering $9.5 billion loss for the fiscal year ending Sept. 30, up from $6.5 billion the previous year. This loss was attributed to non-cash contributions to worker compensation, despite the agency having total operating revenue of nearly $80 billion.
Privatizing the Postal Service could have far-reaching implications for the shipping industry, small businesses, rural communities, and potentially result in the loss of hundreds of thousands of federal jobs. It could also impact the e-commerce sector, particularly companies like Amazon that rely on the Postal Service for “last-mile” delivery.
Trump’s relationship with the Postal Service has been contentious, with him previously referring to it as “a joke” and demanding price increases on packages. However, the agency has been implementing modernization efforts, including cutting 45 million work hours over three years and reducing transportation costs by $2 billion.
The potential privatization of the Postal Service raises concerns about its impact on various sectors and the economy as a whole. Trump’s transition team has not provided any comments on this matter.
