The nation’s postmaster general says delivering mail six days a week may no longer be feasible for an agency facing deficits in the billions.
John E. Potter told a congressional panel Wednesday that cutting mail delivery by one day a week may be necessary to curb a projected loss of more than $6 billion for this fiscal year. He asked a Senate Homeland Security and Governmental Affairs subcommittee to lift the six-day delivery requirement mandated in 1983.
“It is possible that the cost of six-day delivery may simply prove to be unaffordable,” he said.
Potter attributed the Postal Service’s $2.8 billion debt at the end of fiscal 2008 to decreased mail volume and higher costs. The service has been hit hard by an increase in e-mail usage. Mail volume dropped by 4.5%, or more than 9 billion items, last year, to about 202 billion items, according to the service.
But lawmakers aren’t convinced that reducing service days is the best solution.
“Rather than helping it recover, I believe cutting services would ultimately be a death spiral for the postal service,” because business would look elsewhere, Collins said.
In case you didn’t know, stamp prices are scheduled to go up in May.
If it means one day less of a pound or two of junk mail and worthless catalogs then I’m all for the cutback.
I wonder what happened to the surplus they had, Congress get hold of it?
“…I believe cutting services would ultimately be a death spiral for the postal service,’ because business would look elsewhere, Collins said.”
And that would be a bad thing?
Does that mean the USPS will stop raising the price of stamps every three months?
#4: Are you kidding? They are set to go up in May.
One more day a week without threats from creditors, sounds like a great plan to me!
I guess this shows how efficient government agencies are at providing basic services vs. private sector.
And to think. Some morons want the gov’t to take over more private sector businesses. You have to have like what, an IQ of 30 not figure out that this is a bad idea?
#6: Or have 30 IQ and NOT realize that because of technology (email, Interwebitubes, etc) far less mail is being sent, hence, it costs more to ship each item and government vs private run isn’t a part of this. Isn’t supply and demand with prices set based on same a cornerstone of business 101?
#7. Or have an IQ of 20 and NOT realize that the Post Office DIDN’T adapt to the new climate because it is gov’t run?
Hate to break it to you guys… 5 days of mail delivery service DOES NOT DESTROY SOCIETY! Up in Cannuckistan, we have 5 days of mail service, and we still have an economy, social order and peace.
What is wrong with you ‘Mericans?
Of course, Paddy-O had to through in his GOVERNMENT SUCKS! daily message, but the rest of you… geez!
And, just to light up Paddy-O a bit… A private mail service would service a city like NY, but for the rest of your butt-fuck country in the shanties it would just shred the mail. No way it would be cost-effective. Hence, government does a service that business wouldn’t want.
Paddy, please explain how the post office should adapt to the “new climate”. I’m sure they would like to know. And go beyond simply privatizing it.
# 9 Named said, “5 days of mail delivery service DOES NOT DESTROY SOCIETY! Up in Cannuckistan, we have 5 days of mail service,”
LOL. The 2nd sentence disproved the 1st sentence.
This was floated before some 25 or 30 years ago I think, maybe more. It didn’t go then. It might now since the post office isn’t really part of the government anymore (unfortunately in my opinion – but that doesn’t matter).
Anyway, it will be interesting to see what happens this time. I will miss Saturday delivery as I do most of my snail mail then.
Regarding the picture – the postman always rings twice there, I bet!
# 10 Uncle Dave said, “Paddy, please explain how the post office should adapt to the “new climate”. I’m sure they would like to know.”
Don’t know. If someone wants me to have the job of solving that business problem, they can pay me.
Funny how that works. You want exec level answers, pay exec level price…
That’s your 1st lesson of the day on the Free Market.
N.B. The 1st lesson was free. If you’d like more it’ll cost you. 😉
I think they should increase the charge on junk mail first.
#13: Until then, you’ll bitch and moan and call people idiots instead. We understand quite well how you work.
# 17 Named said, “Yes yes. Who has the most robust banking system in the world?”
Umm, Named. It was a joke. The way someone jokes with their brother. That’s the way I feel about Canada. If I didn’t live in the US I’d move up there.
#13, Cow-Paddy,
Don’t know. If someone wants me to have the job of solving that business problem, they can pay me.
In other words you don’t have any clue. Just another of your Anti-American rants.
Canada has had 5 day delivery for at least 30 years. Their country not only has survived, it is energy independent, has better looking women, fewer murders (and crime in general), and is in a much healthier economic state right now. Did I mention they also have single payer health insurance and a much smaller debt per capita?
A few years of Obama and we too could achieve that.
They should increase the bulk mail rate. Junk mail will decrease, revenue will increase, and the rainforests will be saved. All at the same time.
Unless that affects netflix of course. I need my movies. =)
# 19 Mr. Fusion said, “In other words you don’t have any clue. ”
Nope. For a complex business problem in a large complex entity, it usually takes me a month to just make sure I’ve gathered all the needed(correct) statistical data to start a thorough evaluation that will result in a plan.
Of course, this couldn’t occur to you (or Uncle Dave) as neither have done any successful turn arounds of a large business. Anyone who has, will read your post and laugh.
18,
I figured as much actually, but I was trying to keep the argument going. Thanks for ruining it… 🙂
You’re welcome to come visit. As Homer J Simpson says, we’re America Jr.. with some European aspects too… Lovely country Canada…
# 23 Named said, “You’re welcome to come visit. As Homer J Simpson says, we’re America Jr.. with some European aspects too… Lovely country Canada…”
Thanks. I’ve set up subsidiaries up there, worked with the Gov’t on security issues and visited. Some of the most beautiful land on the face of the Earth. Also, the people are generally more sophisticated than general US population…
#9 Named said: “A private mail service would service a city like NY, but for the rest of your butt-fuck country in the shanties it would just shred the mail. No way it would be cost-effective. Hence, government does a service that business wouldn’t want.”
Well, private companies like UPS and FedEx seem to be able to service rural areas for package delivery. Perhaps we should let them compete for regular mail delivery as well. Then as Uncle Dave says prices/services could be based on business 101 (supply and demand) rather than the vaguaries of committees and hearings of the postal commission.
#25–Poor Paddy doesn’t have a clue: “Also, the people are generally more sophisticated than general US population” //// Didja ever notice those sneaky Canucks were looking directly at YOU when they said that?
26,
Yes. But they don’t deliver for 40 CENTS! Do you honestly think 40 CENTS is the actual cost to put a piece of mail in one box and pick it up across the country in two days? FEDEX will do it… for about 12 dollars.
28,
FedEx charges more because they don’t have the ecomonies of scale to compete with the subsidized USPS.
a) let the companies charge more – if it’s excessive, than another company will come along and take their business.
b) That money comes from somewhere. If it really costs more than $0.40 to deliver a letter, then why should our taxes make up the difference?
#14 “I think they should increase the charge on junk mail first.”
Agreed. I don’t need valuepak coupons. I don’t need keys to random cars (that probably don’t work) at the auto lot. I don’t need credit card offers in this economy. I do not need stupid newspapers that are 90% advertisements. I don’t need free gifts sent to me to guilt me into sending a donation. (I donate to groups that don’t waste my donation on postage.) I generate enough garbage. I don’t need more mailed to me.
The only junk mail I like is return address labels and refrigerator magnets. Those are at least useful.
I do need a efficient method to have bills, packages, and magazines delivered to me and the post office does that. I don’t know if it needs to happen six days a week. It would not be the end of the world if I did not have to get the mail on Saturdays. I just don’t want to see creditors taking advantage of 5 day delivery by slapping $20 late fees if the due date falls on a Saturday.
#22 & 24: I marvel at how you make assumptions without facts as well as read things into what I write without comprehension. It’s a real gift.
29,
This is a concept that many ‘Mericans fail to grasp. There are some industries where private enterprise is not suited. General purpose mail is one of them. Ostensibly, the purpose is to subsidize the delivery of mail for the citizens and the businesses to allow for the cheapest possible solution backed by the power of the US taxpayer. So, the poorest person can still send a necessary letter since the cost is so heavily subsidized. Additionally, a business that has multiple mailings can afford to have it as a line item in their budget rather than a major cost with a profit seeking business as they wait for “competition” to show up. Competition like Comcast competition I guess…
Anyhoo, there are certain industries where government should not subsidize… banking might be one of them. But, you’re country has shown the way again. Privatize inefficient mail, but socialize the capitalist defenders on Wall Street… or something like that.
31,
Care to explain? What assumptions? What have I read into what you wrote? You said “Isn’t supply and demand with prices set based on same a cornerstone of business 101?”
I agreed with that – where’s the problem?
People are surprisingly emotional about this. I always wondered why mail came on the weekend (Saturday). It’s more convenient to have mail on Saturday, but it’s really not a big deal.