Why Trumps Want to Blame Amazon for USPS Woes

For many, former President Donald Trump's obsession with blaming Amazon for the U.S. Postal Service (USPS) woes is a clear indicator of his narcissistic personality. Trump, a notorious figure often seen as unable to accept responsibility for his actions, consistently shifts the blame onto others. This tendency is evident in his frequent attempts to point fingers at Amazon, which he sees as a rival and a business adversary.

Trump's Mental Disorder and Blame Game

Trump is well-known for his narcissistic behavior and his inability to take responsibility. When faced with any issue, he tends to blame someone else. It's a common pattern of behavior for someone with a narcissistic personality to surround themselves with scapegoats. In this case, Amazon, which is owned by Jeff Bezos (the same person who controls the Washington Post), has become one of his prime targets.

Background and USPS Issues

The core of the issue lies in the negotiation between Amazon and USPS regarding shipping costs. Amazon, as a major player in e-commerce, has a significant volume of shipments that USPS needs to handle. Negotiations in such high-volume situations are normal for any business, but Donald Trump has mischaracterized this negotiation as a betrayal by Amazon.

USPS Health Care Costs

One of the underlying issues at play here is the imposition of pre-funding the health care benefits for current and future employees. Trump argues that this financial burden has significantly impacted USPS's profitability. While it's true that USPS operates under unique regulations, the financial strain from health care costs is just one of the many challenges the organization faces. According to business analysts, if the Congress had not imposed these health care costs, USPS would have been profitable for the past six years. However, the reality is more complex.

Amazon's Negotiation and USPS's Dilemma

The negotiation between Amazon and USPS was a pivotal moment in USPS's financial history. Despite USPS operating at a loss for decades, in 2019 the service lost $8.3 billion — a significant improvement from previous years. The primary issue was that USPS had to hire more individuals to handle the contract delivery, as the new package sorting machines could handle a much larger volume. However, the funds from the contract were not enough to offset the additional resources needed. Amazon's negotiation resulted in unfavorable rates for USPS, leading to higher costs but no proportional increase in revenue. This situation left USPS in a difficult position, ultimately leading to compliance with Amazon's demands.

USPS, despite having the upper hand due to its superior infrastructure, was forced to accept the unfavorable rates. If USPS had negotiated an 8% to 13% increase in shipping costs, it could have offset the additional expenses. However, Amazon's "take it or lose it" approach forced USPS to accept the terms, leaving the organization with fewer options. This negotiation highlights the delicate balance between business needs and governmental regulations.

The Broader Issue: Legacy Debt and Health Care Costs

The root of USPS's financial struggles lies in its legacy debt — a result of failing to properly fund health care benefits in the past. The unemployment and national insurance trust fund, combined with the legacy debt, has created a fundamental problem for USPS. Much of the money allocated to these funds could have been used to improve services or invest in new technologies.

In conclusion, while Donald Trump's public statements often oversimplify complex issues, the real problems faced by USPS are multifaceted. The negotiation with Amazon was just one part of a larger financial and regulatory struggle. Understanding these factors provides a clearer picture of why USPS faces ongoing challenges and why the narrative surrounding Amazon's role in these issues is oversimplified.