U.S. Postal Service hemorrhaging money, running out of options

[marmar]

This week, the U.S. Postal Service issued a new price hike. The change doesn’t affect the price of a basic first-class stamp, so it’s gone unnoticed by most consumers, but it’s the latest desperate volley from the Postal Service to stem the coming tide of insolvency.

Postal Service officials have blamed the recession for the agency’s financial woes, but the economy is simply exacerbating lost postal revenue from the greater trend of paperless communication. According to internal estimates, lost revenue will skyrocket over the next decade, putting the Post Office a staggering quarter-trillion dollars ($238 billion to be exact) in the red by 2021 if current trends continue.

For several years, the Postal Service has been considering cutting Saturday delivery in order to slow down some of its losses. Polls have shown that the public is in support of cutting Saturday service, and the Postmaster General has strongly advocated doing so. However, last month, the U.S. Postal Regulatory Commission (PRC), an independent government body, released a report (PDF) concluding that the Postal Service has vastly overestimated the savings that a five-day delivery schedule would provide and that any savings would be undercut by the diminished quality of service stemming from such a reduced schedule.

The PRC says that dropping Saturday service would result in annual overall savings of $1.7 billion, compared to the Postal Service estimate of $3.1 billion — no small number, but a drop in the bucket compared to what the Postal Service stands to lose. ..............(more)

The complete piece is at: http://www.americanindependent.com/180124/u-s-postal-service-hemorrhaging-money-running-out-of-options

[Liberal_in_LA]

1. sad.

[tridim]

2. Remember when they were considering adding postage to emails?

I think it was sometime in the late 90's. Made me LOL.

[SDuderstadt]

5. It should embarrass you....

you got hoaxed:

http://www.snopes.com/business/taxes/bill602p.asp

[tridim]

7. Oh well, at least I got the date right.

I would have never believed this had it just been an email. I saw it on the "news".

[xchrom]

3. Recommend

[benboot]

4. Our mail man at work is the rudest person alive.

He thumbs through the mail looking for envelopes he thinks could be low on postage, too wide, etc. and sets them aside so we have to mail them the next day. He challenges the way we send our catalogs out (despite our getting higher up approval at the Post Office), and then shows up from 12:00 noon to 3:00 and every where in between during the day with out a smile, hi, or anything. If we have two tubs of mail he complains he has to haul both out. - and this guy is an improvement over the last 2.

[ret5hd]

11. I think you should start sending all your stuff by Fed-Ex.

Let us know how that works for ya'.

:rofl:

[Gabi Hayes]

13. check out its other posts.....don't put much faith in what it's spewing

doesn't that sound like some typical RW e-spam you hold your nose while pressing the delete button?

[devils chaplain]

22. Have you called the local office to speak to his supervisor and complain? N/T

[GreenPartyVoter]

6. My dad was a rural route carrier for 21 years. He saw firsthand the poor management practices which

were and still are ruining the service. (And killing carriers as well.)

[jdlh8894]

8. What else is new?

The postal service has been bleeding for over 40 years!
Been tried to put a Tampax in a few times, but to no avail.

[al_liberal]

9. WTF? Why not $0.50-$1.00 stamps?

It would still be a great deal to be able to send something to the four corners of the American empire for a buck.

[GKirk]

10. Dump Saturday delivery

how much money would that save?

[ret5hd]

12. Reading is your friend.

[GKirk]

16. I guess I'll grab the dictionary

and start reading. Quick question... what am I supposed to read?

[theophilus]

17. Probably none. But it would be bad for all involved. n/t

[GKirk]

19. How could a one day reduction in payroll

not create a savings? And why would it be bad for me?

[dixiegrrrrl]

14. "the U.S. Postal Service issued a new price hike." ???????????? misleading.

After wading thru the whole article, I must have missed anything about the "price hike".

Did anyone else read about it???

[morningglory]

15. Need to sponsor some more bike racing teams. nt

[WinkyDink]

18. Yet ANOTHER AMERICAN DISGRACE, THAT WE HAVE NO FEDERAL POST OFFICE SUPPORT.

In 1982, U.S. postage stamps became "postal products," rather than a form of taxation. Since then, The bulk of the cost of operating the postal system has been paid for by customers through the sale of "postal products" and services rather than taxes.

http://usgovinfo.about.com/od/consumerawareness/a/uspsabout.htm

[Mimosa]

20. The Postal System was established as a government communications service

Not a for profit enterprise.

[kenny blankenship]

21. I know how Republicans can solve the USPS's problems - by cutting labor costs!

Just require everyone to go to their local post office to send letters and packages. And when someone wants to receive a letter or package, they just go to the local post office to pick it up. Fire all the letter carriers and pocket their salaries! Duh!

In the out years, further rounds of savings could be realized by having anyone wishing to send mail be required to travel with their letter to the local Post Office to buy a stamp, then to carry their own letter or package to the Addressee themselves - PERSONAL RESPONSIBILITY! Do it yourself! If it's good enough for momma cats and possums, it should be good enough for small business owners, lawyers and wedding planners.

[snooper2]

23. maybe they should start charging a $1 to mail something

[Bucky]

24. 90% of the mail they carry to me is advertising crap. I wonder if they could raise rates on that