Washington DC is calling our financial crisis a 'recession' because we're being propped up by the Chinese who are buying out near worthless Treasury notes to keep the ponzie scheme running. So, to begin, let's call it for what it is, a depression (with Chinese benefits). So it's time to cut. One place (among many) is the US Postal Service.
Overhaul the US Postal Service:
(1) Offer mail service three times weekly. E-mail, Fed Ex, and UPS have just about wiped out the minimum revenue needed to keep the post office alive as it is presently constituted.
Most of your mail every day is junk mail and bills. Most people can wait an extra day to get a bill in the mail. Credit cards and on-line transactions will lead to the demise of the mailed paper bill and paper check within 10-15 years anyway. Once that's done, the post office will be almost completely out of a job. The government should plan now for that day.
(2) Eliminate the US Postal Inspection Service and turn their duties over to the US Federal Bureau of Investigation.
(3) Close at least 80% of US Post Offices, and place them in existing buildings where they can be tenants such as grocery stores and other businesses. I know that this raises issues with mail security (classified material can be sent by mail) but those issues can be addressed and literally billions can be saved.
Savings - At their present rate of projected loss, the US Postal Service will LOOSE $23 billion each year over the next ten years. Cutting the Postal Service by at least 50% would reduce their budget and would stop loss the red ink. Reduce expectations on what the Post Office will do. Congress doesn't want to do that, but it's prudent and timely. Renegotiate the labor contracts to reflect reality.
Blowback - Higher unemployment as government workers hit the streets. Since we don't have the money to pay the workers anyway without borrowing to do it, there is no other choice.