How the U.S. Post Office got into a financial black hole

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It’s no secret the Post Office has been in financial trouble for years, a fact that has been politicized by President Trump in the lead up to the 2020 presidential election.

The institution wasn’t spared from the impact of the Covid-19 pandemic. Thanks to a lifeline from the U.S. Treasury Department and better-than-expected sales, the U.S. Postal Service has enough cash to get through mid-2021. 

Still, government watchdogs and private consultants warn it’s on a path to financial collapse, with unknown consequences.

“It’s an organization that provides a public service, a universal public service by the government,” said David Trimble, director of physical infrastructure at the U.S. Government Accountability Office, in an interview with CNBC. “But at the same time, it’s an organization that’s required to be self-financing.”

Watch the video above the learn more about the business model of the U.S. Postal Service and why it’s not working.

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