retail news in context, analysis with attitude

•  CNBC reports that President Trump used the White House podium on Tuesday to once again blame internet companies, including Amazon, for the hard times being faced by the US Postal Service (USPS).

There have been concerns lately that the USPS could face bankruptcy by the end of summer if it does not get some financial relief from the government;  conventional wisdom is that a core problem for the Post Office is the way the US Congress requires to account for employee pensions and benefits.  A change in how the rules are written, experts say, would provide considerable relief for the USPS.

However, no relief for the Post Office is included in any of the bailout/stimulus bills passed by Congress to this point.

At his daily press conference yesterday, however, the President said, "I’ll tell you who’s the demise of the Postal Service, are these internet companies that give their stuff to the Postal Service...They drop everything in the post office and they say, ‘You deliver it.’ And if they’d raise the prices by, actually, a lot, then you’d find out that the post office could make money or break even, but they don’t do that, and I’m trying to figure out why.”

Experts say, in fact, that e-commerce in general and Amazon in particular have created more volume and revenue for the Post Office;  it is the drop-off in regular mail - which has gotten worse during the pandemic - that has had a greater impact.