Another government-run success. It turns out that the United States Postal Service, which has a government-approved monopoly on first class mail, lost a staggering $8.5 billion last year despite significant employment cutbacks and other reductions.

WASHINGTON — The Postal Service said Friday it lost $8.5 billion last year despite deep cuts of more than 100,000 jobs and other reductions in recent years.

The post office had estimated it would lose $6 billion to $7 billion, but a sharp decline in mail took a toll. Increased use of the Internet and the recession, which cut advertising and other business mail, meant less money for the agency.

Let’s look at some of the numbers. Revenue for last year was $67.1 billion — down a full $1 billion from the year before. But that wasn’t the problem. The problem is the Post Office’s expenditures of $70 billion, including a payment of $5 billion for retiree health benefits.

In case it isn’t clear by now, multiple unions are involved in the operation of the postal service. The organization is currently engaged in talks with two of those unions, and CFO Joe Corbett  says the need for reform of regulations, legislation, and labor contracts couldn’t be more obvious.

Why can’t the service be privatized? Because the government mandates fiscally disastrous policies like making the company offer service everywhere in the country, no matter the conditions or difficulties, at the same price. So while you may be able to send first class mail for 47 cents, the government sanctioned organization hemorrhages money.

Private institutions would move to fix the organization’s policies so they line up with common sense. If you’re in the backwoods and a postal carrier needs to climb a mountain blindfolded and backward in order to reach you, it may cost more than 47 cents to mail a Christmas card. The post office, apparently, isn’t allowed to charge even a cent more.