However, we see that the USPS does get a lot of advantages that are effectively subsidized by others:
http://fortune.com/2015/03/27/us-postal-service/
There are real subsidies that the USPS gets that are funded by taxpayers, it simply that those are not paid in cash. So I think the person you were responding to has a completely valid point. They are not competing and doing business on the same terms as other businesses and squandering their cash is enabled because of the subsidies of other expenses that they don't have to bear directly.
The Post Office has been a political battleground for 40 years and it shows.
The “they are subsidized & squander their money” angle seems unfair given that. Personally I think they do a fairly good job.
That said I think it’s fair to say they are tax subsidized, it’s just not much of one.
https://en.wikipedia.org/wiki/Universal_Postal_Union
There have been reforms in the works to help cover the costs in the terminal country, but I'm not sure if they have been effective or not.
http://news.upu.int/no_cache/nd/member-countries-adopt-new-t...
Alibaba also has some sort of logistics deal in place with the USPS to cut costs, but I can't really seem to find much in the way of details.
http://postalnews.com/blog/2015/09/16/chinas-alibaba-and-usp...
1. They have been bailed out numerous times. Yes, they paid their debt back but it was lent at a preferred rate by congress to an entity that no commercial lender to would do at those rates. (see Postal Service Reform Act (H.R. 5714))
2. The Post Office is except from all local state, city, and federal taxes. That also includes road tolls, vehicle registration, etc (wouldn't Fedex love that)
3. The Post Office has an open line of credit from Treasury under preferred rates and terms that no regular business would get.
4.Finally, they hold a monopoly status on delivery of first-class mail. This monopoly status, and the legal issues surrounding "whats considered legal notification" is tantamount to an indirect tax.
I’ve seen forever stamps marketed for years, but it’s been a long time since the price of a letter went up. So, if the price went up to 51 cents, your forever stamps would still work, but, honest question, what are the realistic chances of that happening?
[1] https://en.wikipedia.org/wiki/History_of_United_States_posta...