US President Donald Trump has announced that he is forming an administrative task force to investigate the operations and finances of the United States Postal Service (USPS).
The task force will be headed by Treasure Secretary Steve Mnuchin and is to issue a report within 120 days with proposals for reform.
“The USPS is on an unstable financial path and must be restructured to prevent a taxpayer-funded bailout,” Trump said in the executive order, which cites a figure of $65 billion in cumulative losses since 2009.
The investigation follows several tweets made by Trump criticising Amazon’s deal with USPS, which gives the giant company a bulk shipping discount due to the volume of packages shipped. Trump contends that USPS loses money in the deal, costing the American taxpayer.
While we are on the subject, it is reported that the U.S. Post Office will lose $1.50 on average for each package it delivers for Amazon. That amounts to Billions of Dollars. The Failing N.Y. Times reports that “the size of the company’s lobbying staff has ballooned,” and that...— Donald J. Trump (@realDonaldTrump) March 31, 2018
...does not include the Fake Washington Post, which is used as a “lobbyist” and should so REGISTER. If the P.O. “increased its parcel rates, Amazon’s shipping costs would rise by $2.6 Billion.” This Post Office scam must stop. Amazon must pay real costs (and taxes) now!— Donald J. Trump (@realDonaldTrump) March 31, 2018
USPS hasn’t received direct taxpayer funding since the early 1980s, but it has borrowed from the US Treasury at subsidised rates and receives tax breaks for property and real estate.
However, there is scant evidence that Trump’s claim about Amazon is true. In fact, while USPS has been struggling for the last decade, its parcel delivery business is currently growing.
Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. THEY LOSE A FORTUNE, and this will be changed. Also, our fully tax paying retailers are closing stores all over the country...not a level playing field!— Donald J. Trump (@realDonaldTrump) April 2, 2018
I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy. Amazon should pay these costs (plus) and not have them bourne by the American Taxpayer. Many billions of dollars. P.O. leaders don’t have a clue (or do they?)!— Donald J. Trump (@realDonaldTrump) April 3, 2018
Some critics have suggested that Trump’s antagonism towards Amazon has to do with the fact that The Washington Post, which is owned by Amazon CEO Jeff Bezos but operates independently, has been critical of his administration.
He has launched similar frequent attacks on the integrity of other media outlets, including The New York Times and CNN, accusing them of “fake news”.