Wall Street Journal (February 8)
“Is there a better tutorial in government failure than a monopoly that loses about $25 million every day, like the U.S. Postal Service now?” With first-class volumes down a quarter in six years, drastic change is needed. The USPS wants to restructure, but is largely hamstrung by Congress. The latest plans will end Saturday delivery to save about $2 billion a year, but this would “still only solve about one-eighth of its financial problem.”
Tags: Congress, First-class, Mail, Monopoly, Restructure, Saturday delivery, U.S., USPS
New York Times (May 11)
Congress is “slower than snail mail.” The United States Postal Service (USPS) needs to make reforms. Unfortunately, these require Congressional agreement. While Congress delays, the USPS “is running deficits of $36 million a day. It will go bankrupt this year and annual losses could rise to $21 billion a year by 2016.”Congress is “slower than snail mail.” The United States Postal Service (USPS) needs to make reforms. Unfortunately, these require Congressional agreement. While Congress delays, the USPS “is running deficits of $36 million a day. It will go bankrupt this year and annual losses could rise to $21 billion a year by 2016.”
New York Times (April 23)
The United States Postal Service (USPS) has been hard by declining volume. “Bread-and-butter revenue from first-class mail has been evaporating as most bills are now paid on the Internet.” As a result, the USPS is planning to file for bankruptcy on May 15, unless Congress provides approval to close 3,700 post offices, combine regional processing centers and quit delivering the mail on Saturday. The New York Times believes Congress should provide the USPS with the flexibility is seeks.
The United States Postal Service (USPS) has been hard by declining volume. “Bread-and-butter revenue from first-class mail has been evaporating as most bills are now paid on the Internet.” As a result, the USPS is planning to file for bankruptcy on May 15, unless Congress provides approval to close 3,700 post offices, combine regional processing centers and quit delivering the mail on Saturday. The New York Times believes Congress should provide the USPS with the flexibility is seeks.
Tags: Bankruptcy, Closures, Congress, Mail, Postal Service, U.S.
Wall Street Journal (May 14)
The next federal bailout will be the United States Postal Service (USPS). Congress gave the USPS a $15 billion line of credit, but with Q1 losses of $2.2 billion (a 25% increase over last year), the credit “will be used up by the end of this year, with low odds on ever being paid back.” E-mail has battered the USPS. By decade end, 20 billion fewer letters will be mailed according to current projections. Instead of cost-cutting, however, the USPS has offered its union workers a new 4.5 year contract with a 3.5% pay raise, cost of living wage hikes and protections against layoffs. The WSJ wishes USPS management would protect taxpayers instead.