Jim Cramer: We Need a Stimulus Bill 'So Badly'
Is Amazon to blame for the United States Postal Service's financial issues?
President Donald Trump seems to think so.
In an interview on Monday with Fox & Friends Trump said, “[Amazon and other companies] drop packages into the post office by the thousands and then they say, ‘Here, you deliver them.’ We lose $3 and $4 a package on average. We lose massive amounts of money.”
As TheStreet's Annie Gaus writes, "That echoed an earlier statements by Trump that Amazon was costing the USPS "billions," although he did not cite any specific evidence for that. In 2018, Trump also inserted himself into a proposal by the USPS to raise rates for Amazon packages by 9% to 12%."
Amazon currently uses a range of package delivery services to deliver its packages, including FedEx, UPS and USPS, and is also building out its own delivery infrastructure and network of providers.
Gaus said, "USPS loses money, but indicated in its 2019 annual report that that a primary factor for its financial position was the rising cost of health care benefits and other personnel-related expenses, not burdens imposed by e-commerce firms such as Amazon."
"Significant declines in our mail volumes as the result of the pandemic were largely offset by corresponding growth in our package business, but the reality remains that the Postal Service is in a financially unsustainable position absent significant fundamental change," said Postmaster General and CEO Louis DeJoy in USPS's latest quarterly report.
Jim Cramer, on the other hand, said based on his sources, there's plenty of money for the postal service and Congress should instead focus on finally getting much needed stimulus passed.
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