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U.S. Constitution
See other U.S. Constitution Articles

Title: Postmaster says days are numbered for Saturday mail delivery
Source: USA TODAY
URL Source: http://www.usatoday.com/money/econo ... ostmaster--mail-delivery_n.htm
Published: Jul 20, 2011
Author: Carly Mallenbaum
Post Date: 2011-07-20 12:42:25 by jwpegler
Keywords: None
Views: 5504
Comments: 14

Falling mail volume and soaring red ink may soon doom Saturday mail delivery and prompt three-day-a-week delivery within 15 years, Postmaster General Patrick Donahoe warns.

Postmaster General Patrick Donahoe predicts that within 15 years, mail service will be reduced to three days a week.

Donahoe's forecast is based on a projected $8.3 billion loss this year as the drift from paper to electronic communication hammers the Postal Service. "On Sept. 30," he told the USA TODAY editorial board Tuesday, "I won't be able to pay my bills."

Chief among them: a $5.5 billion payment due Sept. 30 to cover future retirees' health benefits.

Mail carriers have been making rounds six days a week since the 19th century. After postmasters started talking about cutting back, Congress mandated the six- day delivery in 1983.

Donahoe wasn't specific about how soon he would like to reduce service but said he thinks Congress, struggling with the federal budget, will be more open to the idea now. He said a USA TODAY/Gallup Poll last year helped move the discussion along. More than half of those polled had no problem with losing Saturday mail. The Postal Service estimates the move would save $3.1 billion a year.

Donahoe said the idea has "a much better chance today than a year ago. I don't know if I'd say 'likely' yet."

Asked about the long term, Donahoe said, "At some point, we'll have to move to three" days a week of mail delivery, possibly in 15 years.

Democratic Sen. Tom Carper of Delaware has introduced legislation that would let Donahoe make the Saturday change.

Montana Sen. Jon Tester, a Democrat, won't vote for it. He says losing Saturday delivery would hurt people in states like his, where simple errands can mean long drives and mail delivery is a lifeline.

"It's important to have delivery on Saturday in places like Montana to get things like medicine and things they need," he said.

Some business people aren't concerned. Richard Cech, founder of Horizon Herbs in Williams, Ore., notes that shipping live plants can be sensitive. "We really like to ship early in the week so people get their things by the end of the week," he said. "Very little gets delivered on a Saturday."

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Begin Trace Mode for Comment # 6.

#1. To: All (#0)

What a bunch of clowns.

The Post Office will take in over $54 billion in revenue this year, yet they are going to lose $8.5 billion.

Obama should appoint a CEO and CFO from the private sector to prepare the Post Office to be spun off.

They should look for new sources of revenue. How about selling ad space on their trucks and mailboxes? What about offering new services at their locations?

They should also look for cost cutting efficiencies. I'm sure that there are plenty.

Then they should IPO the company.

jwpegler  posted on  2011-07-20   12:51:48 ET  Reply   Untrace   Trace   Private Reply  


#4. To: jwpegler, mininggold (#1) (Edited)

The Post Office will take in over $54 billion in revenue this year, yet they are going to lose $8.5 billion.

Obama should appoint a CEO and CFO from the private sector to prepare the Post Office to be spun off.

How much does the army lose in revenue? The USPS is a constitutionally called for uniformed service and has almost always operated at a "loss" aka subsidized since Ben Franklin's era. A postal service is part of a civilized modern nation's infrastructure. You want to see a nation with out a postal service? See Somalia.

Godwinson  posted on  2011-07-20   14:41:41 ET  Reply   Untrace   Trace   Private Reply  


#5. To: Godwinson (#4)

You want to see a nation with out a postal service? See Somalia.

You are so misinformed that it's not even funny.

Germany privatized their Post Office in 1995. Today, the company is known as Deutsche Post DHL. It delivers mail across Germany and it competes in package delivery worldwide with 470,000 employees 51 billion euros in revenues. They are very profitable.

Japan Post was privatized in 2007.

Sweden largely privatized their postal service in 1993 by turning postal territories into franchises.

Greece is planning to sell it's post office in an effort to get it's budget under control.

I can go on, but there's no point because you are too stupid to understand.

jwpegler  posted on  2011-07-20   15:16:16 ET  Reply   Untrace   Trace   Private Reply  


#6. To: jwpegler (#5)

Deutsche Post DHL is part owned by the German govt. It would be like the USPS buying out UPS and FedEx financed by tax dollars and sales of stock.

The German Deutsche Bundespost bought DHL and then Airborne Express.

Suddenly you are all for market socialism?

Godwinson  posted on  2011-07-20   15:23:37 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 6.

#7. To: Godwinson (#6) (Edited)

Deutsche Post DHL is part owned by the German govt. It would be like the USPS buying out UPS and FedEx financed by tax dollars and sales of stock.

Completely wrong as usual.

Their postal service was privatized in 1995, just as I am advocating here. 30% of the company is owned by KfW bank. 70% is publicly traded. After they were in private hands, they bought DHL.

Also, all EU postal companies lost their monopoly on mail delivery in 2008 as a result of EU rules.

The U.S. is one of the few developed countries in the world which has a government owned postal service with a monopoly on mail delivery.

jwpegler  posted on  2011-07-20 15:39:47 ET  Reply   Untrace   Trace   Private Reply  


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