Government Agencies

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

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How the U.S. Postal Service fell into a financial black hole

It's no secret the Post Office has been in financial trouble for years, a fact that has been politicized by President Donald 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 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," David Trimble, director of physical infrastructure at the U.S. Government Accountability Office, told 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.