The
United States Postal Service (
USPS), also known as the
Post Office and
U.S. Mail, is an independent agency of the United States government responsible for providing
postal service in the United States.
It is one of the few government agencies
explicitly authorized by the United States Constitution.
Article I, section 8, Clause 7 of the
United States Constitution grants Congress the power to establish post offices and post roads, which has been interpreted as a
de facto Congressional monopoly over the delivery of mail. Accordingly, no other system for delivering mail – public or private – can be established...
The USPS traces its roots to 1775 during the
Second Continental Congress, where
Benjamin Franklin was appointed the first
postmaster general.
The
cabinet-level Post Office Department was created in 1792 from Franklin's operation and transformed into its current form in 1971 under the
Postal Reorganization Act.
The USPS has not directly received taxpayer-dollars since the early 1980s with the minor exception of subsidies for costs associated with the disabled and overseas voters.
However, it does receive tens to hundreds of millions per year in "implicit subsidies", such as breaks on property tax, vehicle registration, and sales tax, in addition to subsidized government loans.
Since the 2006 all-time peak mail volume,after which Congress passed the "Postal Accountability and Enhancement Act", (which mandated $5.5 billion per year to be paid into an account to pre-fund retiree health-care, 75 years into the future -- a requirement unique to this agency), revenue dropped sharply due to recession-influenced declining mail volume,prompting the postal service to look to other sources of revenue while cutting costs to reduce its budget deficit.
First Class mail volume (which is protected by legal monopoly) peaked in 2001 and has declined 29% from 1998 to 2008, due to the increasing use of
email and the World Wide Web for correspondence and business transactions.
Lower volume means lower revenues to support the fixed commitment to deliver to every address once a day, six days a week. In response, the USPS has increased productivity each year from 2000 to 2007,through increased automation, route re-optimization, and facility consolidation.
Despite these efforts, the organization saw an $8.5 billion budget shortfall in 2010, and was losing money at a rate of about $3 billion per quarter in 2011.
http://en.wikipedia.org/wiki/United_States_Postal_Service