The New York Times reports that the U.S. Postal Service is set to lose $9.2 billion this year. It has lost over $20 billion over the past four years. For the first time in 40 years, it might even eliminate next-day delivery of mail. The Postal Service is so short of cash that it may default on its obligations within months, if nothing is done.

“Our situation is extremely serious,” said Postmaster General Patrick R. Donahoe. “If Congress doesn’t act, we will default.”

The problems are many and well known, but can be mostly boiled down to government meddling and union greed—and for these exact same reasons, the U.S. Post Office’s plight is also a harbinger for America.

The Internet revolution is probably the most highlighted and scapegoated excuse for the Postal Service’s financial troubles. Mail volume continues to drop, that is true—down about 20 percent from five years ago. But that is not the real reason for the astounding money hemorrhages. If the Postal Service was allowed to operate in a market free from oppressive government and union regulation, it is highly likely that it would be profitable today. And it is highly likely that it would not be facing 120,000 job losses.

Consider United Parcel Service, dhl and FedEx: They too compete with the Internet—in a government- and union-free environment—and all seem to be able to turn a tidy profit, without constantly receiving taxpayer bailouts.

In the Postal Service’s case, Congress forces the company to compete blindfolded, with its hands tied to its legs. For example, Congress won’t allow the Postal Service to raise its postal rates beyond the increases in inflation—regardless of whether or not it is profitable to deliver the mail at the going rate. Congress also legally requires the Postal Service to provide universal service, forcing it to deliver mail to even the remotest and most crime-ridden locations each week—for the same price as delivering a letter to Malibu. Congress has also legislated several other handicaps onto the Postal Service’s back: things like barring it from delivering beer and wine, not allowing it to hand deliver mail that requires signatures, and prohibiting it from renting advertising space or selling other products at its post office locations.

Then there are the unions.

Wouldn’t it be great to have a job in which it was virtually impossible to be laid off? For much of its history, this was the U.S. Postal Service. No-layoff clauses negotiated by the union, gave employees virtual immunity. Even with mail volumes plummeting, and less work to do, payrolls could not be downsized except through natural attrition. Making matters worse, quasi-government, unionized Postal Service employees are far more expensive than their private sector counterparts, due to their outsized pay and benefit packages. You can thank corrupt politicians afraid of losing union votes. According to the New York Times, labor costs represent an astounding 80 percent of the Postal Service’s expenses. Comparatively, United Parcel Service’s employee costs are only 53 percent, while FedEx’s are only 32 percent.

Why is the U.S. Postal Service going broke? Corrupt, cowardly leadership and corrupt, greedy unions.

There is a further reason the U.S. Postal Service is running such a huge deficit. Congress mandates that the service fully fund its pension and health-care promises. Approximately $5.5 billion of its projected $9 billion deficit is because it is legally required to put away money to pay for all the promises it has made its employees. This is a good thing. If you make a promise, you should keep it.

Unfortunately, the federal government does not hold itself to the same standards to which it holds the Postal Service. Unsuspecting Americans are in for a huge surprise when their Social Security, Medicare and Medicaid get cut.

The U.S. government has promised Americans benefits for which it has not put any money away. In the case of Social Security, it has actually spent the money that was supposed to be saved to pay people when they retire.

According to USA Today, if you add it all up, the federal government has made $61.6 trillion worth of promises to future retirees. This is the amount the government needs stashed away, earning interest, right now, to pay its future obligations.

The government currently has less than zero stashed away. It has a current annual projected $1.1 trillion deficit and over $15 trillion in debt!

It also has all the same union-type problems of over pay, under work, that the Postal Service has.

The looming bankruptcy of the U.S. Postal Service should be a giant wake-up call for Americans. It is a preview of what will happen on a national level.