Today, President Trump issued an executive order (viewable here) to form a task force charged with evaluating the finances of the U.S. Postal Service including pricing, policies and workforce costs. The order is a likely result from the president’s recent interest in the Postal Service’s partnership with Amazon and the assumption that the Postal Service does not profit from that partnership (view NALC’s response here). Continue reading →
Last night Donald Trump abruptly ordered a review of the US Postal Service’s finances, apparently in an effort to further damage Amazon.com. Trump has pursued a Twitter vendetta against Amazon founder Jeff Bezos, who is also the owner of the Washington Post. The Post has frequently published stories critical of Trump. Continue reading →
Yesterday Donald Trump continued his error filled tirades against Amazon and the US Postal Service, this time citing a report he claimed (falsely) had “just come out” and supported his charge that the USPS is subsidizing Amazon. Other analysts have pointed to serious flaws in the report, but now even the report’s author says it doesn’t prove what Trump claims it does:
From Business Insider:
He seems to be referring to a 2017 Citi Research report that has frequently been cited by people criticizing Amazon’s use of the USPS.
However, according to the author of the report, Trump has the wrong interpretation. “We never said Amazon is getting a $1.50 subsidy,” Citi analyst Christian Wetherbee told Business Insider on Monday in a discussion of misinterpretations of the report, which actually says the loss per package is roughly $1.46 for the USPS.
Wetherbee continued: “If you read what that number is, it’s the total package business is priced below cost. It has nothing to do with Amazon specifically.”
Donald Trump continued his semi-literate twitter tirade against Amazon and the US Postal Service this morning. Although he didn’t repeat his previous lie about Amazon not paying sales tax, he once again claimed that Amazon treats the USPS as its “Delivery Boy”, which is of course, true. (Full disclosure: I also treat the USPS as MY delivery boy!) Continue reading →
Axios reports that Donald Trump has become “obsessed” with Amazon and the damage he thinks it’s doing to businesses owned by his billionaire buddies- and he thinks the USPS is part of the problem:
Behind the president’s thinking: Trump’s wealthy friends tell him Amazon is destroying their businesses. His real estate buddies tell him — and he agrees — that Amazon is killing shopping malls and brick-and-mortar retailers.
Trump tells people Amazon has gotten a free ride from taxpayers and cushy treatment from the U.S. Postal Service.
“The whole post office thing, that’s very much a perception he has,” another source said. “It’s been explained to him in multiple meetings that his perception is inaccurate and that the post office actually makes a ton of money from Amazon.”
Axios’ Ina Fried notes: The Postal Service actually added delivery on Sunday in some cities because Amazon made it worthwhile.
Yesterday, the Trump administration released its Fiscal Year (FY) 2019 budget proposal. If enacted, the budget (outlined in a document called “Efficient, Effective, Accountable – An American Budget”) would add at least $7.1 trillion to the federal debt over the next decade, even while it calls for the same job-killing delivery service cuts to the U.S. Postal Service that last year’s budget proposal did. Additionally, it calls for massive federal spending reductions over ten years, including major cuts to federal and postal employee benefit programs, and a federal pay freeze starting in 2019. Continue reading →
While it is clear that the intended target was Amazon’s founder Jeff Bezos (who is also owner of The Washington Post), what is less clear is the reason for the sudden interest in the pricing of packages. It’s probably because of recent media attention resulting from a policy campaign by the United Parcel Service (UPS). Continue reading →