Fixing the Mail: Neither Snow nor Rain nor…Red Ink?

Discussion in 'The Latest USPS, Amazon, and DHL Headlines' started by cheryl, Aug 11, 2009.

  1. cheryl

    cheryl I started this. Staff Member

    Fixing the Mail: Neither Snow nor Rain nor…Red Ink? - Business Week

    The U.S. Postal Service, long beset by financial woes, has recently felt the pinch even more acutely. On Aug. 5, the agency reported a $2.4 billion loss for its most recent quarter, a gush of red ink that is expected to total some $7.1 billion for the fiscal year, which ends Sept. 30. The Government Accountability Office recently placed the Postal Service on its "high risk" list as "an organization vulnerable to fraud, waste, abuse, and mismanagement," needing broad reforms.

    Aggravating matters is that even when the U.S. economy turns around and mail volume rebounds, deep structural problems make it likely that the Postal Service won't benefit much. That's because even though the recession has curtailed second-class business mailings—the so-called junk mail Americans toss daily—much of the trouble stems from the agency's inability to change as mail has decreased, industry analysts say.
  2. TechGrrl

    TechGrrl Space Cadet

    I think that one possibility would be for Congress to privatize the USPS. Truly privatize it, not the hybrid that exists today. In effect, put the USPS through bankruptcy, and allow bids for the restructured entity. The restructured entity should only deliver first class mail. I think this should still be a monopoly. Every other class of mail should be open to free competition from any and all comers.

    The restructured entity would be a business that is not under the control of Congress in any way; it's managers would have a free hand to deliver the mail as efficiently as possible.

    If it turns out that delivering a first class piece of mail can't be done at a rate people are willing to pay, so be it. More and more first class mail will find other ways to be delivered. That's what UPS and FedEX and other delivery companies face in a competitive market.