Our nation’s founders understood the importance of establishing a universal postal system from the very beginning. In 1775, the Second Continental Congress appointed Benjamin Franklin postmaster general for the American colonies, nearly a full year prior to the signing of the Declaration of Independence. Today the United States Postal Service (USPS) makes up our largest non-military governmental infrastructure, obligated to guarantee service to all 167 million addresses across the country.
The recent announcement of U.S. Postmaster General Louis DeJoy’s planned resignation has cast a spotlight on historic challenges facing the USPS. As income has failed to cover USPS expenses and debt for more than 15 years, financial troubles and a declining standard of service have long predated DeJoy’s tenure. Since 2007, the USPS has reported net losses totaling more than $100 billion.
The proliferation of online communication in the digital age has disrupted demand, and pension and retiree health benefits, which make up the largest share of unfunded USPS liabilities, have strained solvency. Since 1998, the volume for USPS’ most profitable product, First-Class Mail, has declined 80 percent and currently stands at its lowest volume since 1968.
