U.S. Postal Service: Another Looming Crisis

If anything, PAEA has turned out to be a recipe for disaster. In each of the four years prior to the law taking effect, the USPS reaped a net income. In his testimony, Donahoe noted that in fiscal 2007 and 2008, USPS would have showed positive cash flow with profits of $3.3 billion and $2.8 billion, respectively. Instead, the prepayment left it with losses of $5.1 billion and $2.8 billion in those respective years.