Jerry,

The USPS is in financial trouble because of the unfunded pensions they are paying to retirees. Years ago, Congress agreed to a 75-year contract with the postal union. They are issuing checks to an incredible number of people who no longer work and will be issuing them for many years. It's billions of dollars more than the USPS takes in every year.

You're right. It is a bad business model, but it isn't because the business couldn't function and still make a profit while paying decent wages. The union benefits are an unsustainable financial hemorrhage.