Sep 6, 2011 1:07pm

Do We Need the Postal Service?

nm usps 101112 wmain Do We Need the Postal Service?

(Paul J. Richards, AFP/Getty Images)

Is the post office a vital part of the economy or a money-losing dinosaur that delivers junk mail?

William Henderson, former postmaster general from 1998 to 2001, told ABC News today that there is a role for hard-mail delivery through the postal service’s automated infrastructure and especially for those with low-incomes behind the digital divide, but the business is dying.

“The postal service was by far and away the most efficient mail service in the world, but that efficiency doesn’t help you if you don’t have work,” Henderson said.

Congress’ Committee on Homeland Security and Governmental Affairs hosts a hearing at 2 p.m. today called “U.S. Postal Service in Crisis: Proposals to Prevent a Postal Shutdown.” Even after proposing to close 3,700 offices over the next year, the U.S. postal service has a $9.2 billion deficit and is near a default.

Casey Chan of Gizmodo writes the postal service must innovate to stay alive.

“Heck, the only thing I need a physical mailing address for these days is to get physical packages from Amazon, UPS and FedEx do just fine and do it with lower labor costs (53% of its expenses for UPS, 32% for FedEx compared with 80% with the USPS)—the private delivery services just run more efficiently as a business,” Chan writes.

Henderson said the postal service has tried to improve its business with innovation ever since it released a report in 1976 that predicted electronic media would decrease physical mail delivery. Those ideas included adding an email address to every physical address, email certification services, and even offering Internet access in post offices. But those suggestions were often rebuffed because the government did not want “intrusions” on the internet.

The postal service has tried business strategies with some success, including flat-rate boxes and television marketing. It also has a vision plan for 2013, which includes expanding web services through usps.com and mobile applications.

Henderson said he has long argued for privatization of the postal service, but no one has the “stomach” for that solution yet.

“The reason is a combination of labor union influence and politicians not interested in privatizing,” he said.

Sally Davidow, spokeswoman for the American Postal Workers Union, said the need for the postal service is evident from the large outcry after it announced plans to closed post offices. The postal service has a further reach and differentiated prices and services that the private mailing industry does not offer, she said.

“It gets to every household in the country,” she added.

In addition to household demand, Davidow said businesses rely on the postal service and it is “vital to our economy.”

From 2008 to 2010, sales revenue in the mailing industry, which includes private mailers and printing companies, grew by 10 percent to $1.1 trillion and increased jobs by 16 percent.

Davidow said the mailing industry accounts for 7 percent of US GDP.

She said 91 percent of mailing industry jobs are in private sector and 75 percent of those jobs are in firms dependent on the postal service infrastructure.

If nostalgia is the main reason to prevent a further shutdown of post offices across the country and privatization of the postal service, then that’s not good enough, said Tad DeHaven, budget analyst with the Cato Institute.

“The question is, ‘Does the federal government still need to be in charge of it?’ The answer, in my point of view, is no,” DeHaven said.

Postal services in the Netherlands and Germany have been privatized and offer other services like banking, DeHaven said. Though he cautions diversifying into other lines of businesses may create unfair competition against the private sector.

Henderson counter-argues that the postal service is not supported by the government but by its own revenues.

“It does have a monopoly, which is not worth much today because of declining mail volume,” Henderson said.

 

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User Comments

It’s bloated, and it’s been that way for far too many years. Now, it’s too late.There was a time when it could have been fixed by trimming down those overpaid jobs, with ridiculous pension plans, and benefits. By stupid planning they have put themselves out of business. NO BAILOUT!

Posted by: Jack | September 6, 2011, 1:31 pm 1:31 pm

There is nothing that the government does that couldn’t be done better by private industry with the advantage, at minimum, being that there can be competition with the latter. Sure there are some things that we don’t want or can’t privatize (foreign treaties, for instance) but there is nothing less capable and less efficient than a government bureaucracy. The fewer we have the better. The PO is just one example of the government’s failure…

Posted by: Erik | September 6, 2011, 1:33 pm 1:33 pm

to even ask the question….is to defy our Constitution… the Post Office was set up BY our Constitution….WE THE AMERICAN PEOPLE NEED OUR POST OFFICE! It is our right to be notified by US MAIL! Figure it out AND fix it!!!

Posted by: Zellie | September 6, 2011, 1:39 pm 1:39 pm

I use them to pay bills so yes, we do need the postal service.

Posted by: notsayin | September 6, 2011, 1:40 pm 1:40 pm

PRIVATE INDUSTRY brought us mercernaries in Iraq and Afghanistan for THREE TIMES THE SALARY of U.S. Soldiers…SO NO, PRIVATE INDUSTRY IS NOT ALWAYS CHEAPER!!!

Posted by: Zellie | September 6, 2011, 1:41 pm 1:41 pm

I would like to know where this reporter got his information. The US Postal Service is not government funded, it is and always has been self-supporting – no tax dollars pay for the postal service operations. They may be not financially sound at the time, but they have very often operated in the red and managed just fine…..

So get off the blog unless you know what you are talking about…..

Posted by: maggie | September 6, 2011, 1:47 pm 1:47 pm

Lots of people, including me, still like to send greeting cards for special occasions and holidays, plus the old-fashioned hand-written thank you note, wedding invitations and the like. An anachronism, I know, but many people do not have access to technology, especially some senior citizens, or folks with economic woes (and there are plenty of those.) Many prefer to pay bills by paper and mail. It would be a big loss.

Posted by: Ruby | September 6, 2011, 1:50 pm 1:50 pm

the way business done is changing. Internet changes many many things, including postal ‘snail mail’ service, and newspapers are having huge financial difficulties. Many of our problems are simply re adjusting to the new technologies and way of life.

Posted by: whoopstheydiditagain | September 6, 2011, 1:51 pm 1:51 pm

In my humble opinion – yes – I strongly believe that we still need the Postal Service even though the market exists some other competitors – e.g. UPS, FedEx…etc. The argument is similar to the so-called “Online banking” – done everything Online or more appropriately “Electronically” versus paper. As an IT professional who has more than 25 years of computer in-depth knowledge (Yes – I’m one of those Nerds who can write Operating System code) – I’m a firm believer that the reason we apply the computer is for speed; in terms of reliability – nothing can beat paper trail. Not too long ago, a local grocery store implemented some “check-scan” equipment and my better-half and I were informed that we don’t need to write on our check anymore – the clerk can just scan our blank-check. But we decided to still write the complete transaction information on our check before we handed it to the clerk. Double book-keeping – i.e. scan plus paper-trail – is a good thing. Besides, as far as general consumer is concerned – the more similar businesses compete, the more benefits that consumer will receive. Monopoly is never a good thing!

Posted by: Get_Down | September 6, 2011, 1:55 pm 1:55 pm

Not everyone can afford a computer and the charges for same…and updating same, etc. Yes technology is wonderful BUT it is taking over so much that it is also ELIMINATING JOBS! And I like RUBY prefer to pay bills by paper and send greeting cards. What would people do if they eliminated the post office? Jobs gone, and if they cannot afford a computer, what then? It’s not so simple and this is a huge part of the problem why we have no jobs.

Posted by: Barb | September 6, 2011, 1:58 pm 1:58 pm

I can get a package in three days from Japan through the USPS for less than $20. FEDEX wants three times that for twice as long and the package shows up damaged…

Posted by: Tibs | September 6, 2011, 2:06 pm 2:06 pm

Get rid of USPS and expect a 100% (at least ) increased cost of shipping anything with Fed-Ex or UPS . One reason they are in the red is because of the way the conservatives set up the manner in which the Post Office has to fund their employee pensions , during the Bush administration (duh) . The Post Office was actually doing fairly well until then , and even now they are not nearly as bad off financially as it looks on paper , that conservative-bred balance sheet discrepancy being a well-played political ” point” by the conservatives , who’ve been overtly and consistently trying to kill / neuter the USPS since Reagan. Conservatives live to make devolving politically self serving laws that make USPS ( and all govt. entities for that matter, save their most sacred cow , i.e. the U.S. military / Defense sector ) weak and inefficient and more costly then they could be otherwise, then they use those conservative agenda weakened, barely functional govt. services and sectors , USPS in this case , as bumper stickers/ unwanted poster children for government inefficiency ,well DOH !

Posted by: daveykole | September 6, 2011, 2:10 pm 2:10 pm

Basically , the conservative plan on USPS is : shoot the horse in the foot , then complain that it is limping and gimpy / useless , and should be killed .

Posted by: daveykole | September 6, 2011, 2:14 pm 2:14 pm

The post office is needed, but not as much. They should not kill the horse or completely destroy it. Cut down the service from 6 to 4 or 5 days. Save time, run it like a corporation of typical monday thru friday.

Posted by: tazzy929 | September 6, 2011, 2:25 pm 2:25 pm

some of you guys posting do not realize that its the supporters of companies like Fedx, airborne etc that would love to see the Post office disappear. we left out the public option in health care now you see where its gotten us. local governments now turn over public monies to private companies you see where its gotten us (no where) The postal office is what keeps the private companies in check in terms of cost and service if you where to allow the private companies to take over and run it your 45cent stamp will be 5 dollars are more why? there is no longer a public option ( the post office) to keep them ( the private companies ) in check lets fix the problem not elemiate it leave my Post Office alone! I dont mind paying taxes to keep it intact.

Posted by: Wayne | September 6, 2011, 2:32 pm 2:32 pm

I like the fact that, with the USPS, I have standing as a customer even I am the package’s recipient, whereas with commercial carriers, I only have standing when I’m a sender. When your package disappears into the Big Brown Hole, you’ll know what I’m talking about.

Posted by: Jenn | September 6, 2011, 2:45 pm 2:45 pm

United States Constitution, Article 1, Section 8, paragraph 7: “To establish Post Offices and post Roads.”

If you haven’t read the US Constitution in a while, look it up…it is worth getting reaquainted with it! And while you are at it, look up the BILL OF RIGHTS, too!

Posted by: Zellie | September 6, 2011, 2:45 pm 2:45 pm

Sorry maggie but you’re wrong. The USPS is a government agency and pretending to run like a business isn’t the same as running like one… (and even when pretending the government can’t pretend to do anything well.)

Posted by: Erik | September 6, 2011, 2:47 pm 2:47 pm

Yes, we still need Postal Service, but they need to do BIG changes to stay. They are slow, inefficient, too expensive. If they can’t make profit, they must be replaced with those that will be able to make profit, bailout is not an option.

Posted by: Miro | September 6, 2011, 3:02 pm 3:02 pm

Okay, the real deal is that the USPS is a government agency, but they have not directly recevied taxpayer $$ in at least a couple of decades. So, some of you on here need to do a little more research before you decide to post.

Posted by: mijoje1 | September 6, 2011, 3:10 pm 3:10 pm

Honestly, I could care less. It’s a dinosaur that needs to go the way of one, just like checkbooks. I’m tired of granny holding up the checkout at Wal-Mart writing her check. All the post office brings me is junk, anyway. Won’t shed a tear at all for them.

Posted by: Scott | September 6, 2011, 3:10 pm 3:10 pm

*received*…sorry, typo!!

Posted by: mijoje1 | September 6, 2011, 3:11 pm 3:11 pm

The post office can’t do their core job which is to deliver the mail to the right address in good condition. They haven’t been able to do that to my address for five years. I pay credit cards by going direct to Sears and Target now as they would lose payment when I mailed it. They had an efficiency expert come to our post office and they quit. The only place where you can wait for five minutes when there is no one in line. I used to joke about bringing a tent!

Posted by: John | September 6, 2011, 3:20 pm 3:20 pm

@Scott – oh come on, please be nicer to my grandmother, just cause she writes checks doesn’t mean she’s a bad person. As a matter of fact, I’d say the bad person is you!. You think technology is all that?? It could be, but did you know that because of giant leaps in technology in the past 12 years All recorded music sucks & is not as good as it was in the ‘analog days’. So go ahead bemoan all that don’t have your latest technical gadget. I feel sorry for the goofs are always texting, looking down. Missing the world go by…the analog world. The digital world has you shaking it like a baby rattler.

Posted by: hhh | September 6, 2011, 3:37 pm 3:37 pm

Yes we need the Postal Office. Once we rely on digital media for everything…WE”RE DOOMED.

Posted by: hhh | September 6, 2011, 3:39 pm 3:39 pm

We need the post office. We might not need as many offices, as in the case of one office in a small town costing close to $90K per year to run but bringing in only $30K. If it’s not sustaining itself, then it’s costing too much to run. We need to perhaps scale down services; maybe they could close earlier, for example; and we need to shut down the non-profitable offices; but to do away with the post office altogether isn’t the answer. We NEED the post office.

Posted by: carole | September 6, 2011, 3:51 pm 3:51 pm

lobbyists and political buyouts have hurt (screwed) the USPS. Let them change the way they have to fund their retirement plans..

Posted by: USA 1 | September 6, 2011, 4:32 pm 4:32 pm

Service needs to be cut back. We can deal with only 4 days of mail a week (though netflix would have a fit). Also close many of the offices. I have FIVE post offices within 10 miles of my house. WHY? You can’t tell me they are all necessary.

Posted by: CAW | September 6, 2011, 4:42 pm 4:42 pm

So in the end, it’s Al Gore’s fault for creating the internet.

Posted by: wantingbalance | September 6, 2011, 4:45 pm 4:45 pm

Let it go under. This happens with the USPS every 5 years or so and higher postage does not solve the problem. Like the government, the USPS is heavily loaded with inept, lazy, entitled workers. One has only to visit the PO to see and understand the nproblem.
Let it go into bankruptcy.ands then reorganize getting rid of a lot of lazy people, less mail delivery, and start treating it like a business without a government subsidy.
Find an astute businesssman to run the organization under the more intelligent way of running a business.

Posted by: Ron | September 6, 2011, 4:48 pm 4:48 pm

Do what is necessary to stay even or profitable – cut costs and/or raise rates. The USPS service is the world’s greatest bargain. Think about it – I give a guy in CA a piece of paper in an envelope and 44 cents and say deliver this to an address in NY, or PA to HI, etc. Who else works that cheap and provides that service at 2-10X or more1 Doesn’t hurt that I’ve layed in a 15 year supply of FOREVER STAMPS.

Posted by: Rustinator | September 6, 2011, 4:48 pm 4:48 pm

In the real world, unions contribute to the cost of doing business and when government intervention in the form of restrictive tax policy and heavy regulation increase other costs, the business responds by sending jobs and work off shore. The Post Office can’t do that and is perhaps one of the best examples of what happens when the worker’s run the business. Knowing that first class mail would decrease due to the impact of technology starting in 1976, the Post Office focused on anything but fixed costs. During that time, personnel and facility costs grew at rate unmatched by any innovation that could be dreamed up by the “thinkers” at USPS. No, I don’t blame the unions for getting everything they could. I do blame the holders of the Post Office trust for giving in and ignoring the impact of social media on today’s society. When bulk mail is the only sure thing you have and when you treat your bulk mail customers as we are treated, IF ANY ALTERNATIVE comes along, we will be left with an organization whose sole value will be to sell collectors stamps.

Posted by: wantingbalance | September 6, 2011, 4:49 pm 4:49 pm

Rustinator…if you divide the shortfall by the number of pieces of mail handled by the post office and subtract the amount that will decline next year, your piece of paper will soon cost $5. Those forever stamps are like Walmart’s roll-back pricing at the gas pump. Buy a Walmart shopping card and you can buy your gas for 10 cents per gallon less at the pump. But if you only buy a $30 card, your cost is $3 and you save nothing on gasoline. Same with the forever stamps. I get mine a month in advance. If you really did get 15 years worth, then you just made a donation to the Post Office.

Posted by: wantingbalance | September 6, 2011, 4:53 pm 4:53 pm

Do we need 5 1/4 inch floppy disks?

Posted by: s | September 6, 2011, 4:55 pm 4:55 pm

Remember the days BEFORE the postal service?

Yeah, we really need to go back to that time, doofus.

Posted by: Rick | September 6, 2011, 4:55 pm 4:55 pm

I admit that I frequently visit “amazon.com” to do some purchasing. At the check-out, I always pick the “Super Saver shipping” b/c then shipping fee would be free and they would choose USPS as my package carrier. In my area, the USPS mailperson now and then would ask residents to help their “food-drive” and I always like to oblige. I never see UPS or FedEx workers ask for similar things. A lot of times I do receive useless junk mails especially from various banks offer me “Pre-approved CC”s. Now let me enlighten a few – it’s not USPS’ fault at all. So long as the “material” has enough postage and legible address for them to deliver – junk or not it’s not up to them to pre-decide – it’s their job and responsibility to deliver. Now one actually should thank the mailperson for delivering those mails (junk or not) to you – if you are upset about receiving so many junk mails – please don’t blame the messenger; blame those senders instead. Now for that inpatient person who felt that he’s “tired of granny holding up the checkout at Wal-Mart writing her check”. Does store like Wal-Mart not only providing multiple cashiers but also the “Express lane”? Oh – I guess even if that inpatient person standing in those “Express lane”, but someone else has a lot of items even using a CC – he/she would still become inpatient. The old saying “Patience is a virtue” – how true. I once knew a job applicant who came to our area with a college degree and impressive (bragging) Resume and after working in our area for a few weeks, he only demonstrated that he had the “copy” ability, no skill to modify/change. Finally the management had no choice but let him go. Maybe he should have more patience to learn the skills and pick up knowledge as how to modify/change. I’m just saying…

Posted by: Get_Down | September 6, 2011, 4:56 pm 4:56 pm

Erik, The post office ADDS competition. That’s a good thing. Without it, private delivery service prices would skyrocket. And groups of private businesses CAN hinder real competition (See eg. health insurance, oil corporations etc.). If “The PO is just one example of the government’s failure” as you say, then it’s an extremetly bad example, because it’s been operating since 1775. Just another one of Benjamin Franklin’s bad ideas.

Posted by: Fred | September 6, 2011, 4:59 pm 4:59 pm

WANTINGBALANCE…If I stick my FOREVER STAMP, that I paid 44 cents for, on a letter or bill in 2026, and the first class rate is $5.00, how am I loosing? Unless the USPS declares bankruptcy or Congress voids all contracts, forever is forever because I don’t have to add supplemental postage for a higher rate mailing in the future.

Posted by: Rustinator | September 6, 2011, 5:08 pm 5:08 pm

The problem is right here in the article and goes beyond the post office, to government jobs in general. In reference to the cost of labor in private firms vs. the USPS – “53% of its expenses for UPS, 32% for FedEx compared with 80% with the USPS”. That’s just not sustainable, and the state of the USPS just underlines it even further. Cut your labor costs or go into default.

Posted by: JLW71 | September 6, 2011, 5:09 pm 5:09 pm

We do need the postal service. The U.S. P.S.is partly run by the government, it changed in the ’70s and it’s now privitized as well. The government makes the decision to raise postage costs. The law changed slightly, making it able to change the way it does business. I believe we need to cut back on days of delivery. We also, need to close offices that are not profitable. Many of us still do not own computers and would suffer without the U.S.P.S. You can’t count on UPS or Fedex to take up that slack that the USPS is now doing. I’m laughing at the idiot who said he can’t stand to see people write checks. What’s his problem?

Posted by: Sharon.mac | September 6, 2011, 5:09 pm 5:09 pm

The post office should be shut down as soon as possible. The unskilled labor employed there has done a horrible job for years and certainly do not deserve to be paid more than the minimum wage for the task they do with such stunning inaccuracy. The misdeliveries, lost mail, and slow pace of the service have made it totally unreliable. There is an attitude of entitlement and general sloth within the post office that turns the stomachs of observers. In an age of technological revolution and lightning fast transmission of essential information, the post office can no longer be justified as a greeting card and junk mail delivery system. It exists as a drain on society and an economic leech. There is no way such an army of overpaid, underworked, and inefficient workers should be supported in any way and while finding a real job may be a hardship for them, it is one they must all face like the rest of productive society. Change, mismanagement, and loss of revenue are contributing factors in the demise of the post office, but the heart of this so-called “business” are its employees and they must ultimately take most of the responsibility for driving it into the ground through laziness, greed, and doing a truly shabby job.

Posted by: justiceforamerica | September 6, 2011, 5:42 pm 5:42 pm

The USPS is a hybrid. Specifically, it is a US Government institution and a semi-autonomous, semi-private institution. Therein lies the problem. Either make it a 100% government institution of privatize it completely. No other solution will work. Just look at the facts. For example, with its current half in half out status they have to ask congress for permission to do just about anything a normal private outfit decides privately and efficiently (like what rates to charge, what innovations to introduce, etc). By the same token when they run short of cash they go back to Congress for some more. This same hybrid status also keeps them from being able to develop and introduce the types on innovations that would enable them to survive for the future (i.e. they have to ask Congress for permission to change anything) and compete with the private carriers out there. Rather than arguing whether they should be given a bailout or not we should be arguing whether to make them a private or public entity. If you make it a public entity they will continue operating more or less the same way they do now. If you opt for privatization, initially give them the funds they need to continue operating (one time only deal) and then allow them to sink or swim on their own. It is quite obvious the USPS is in bad shape and must be fixed. Rather than the usual yearly band aids lets just allow them to take one route or the other and solve the problem. I suspect that given this choice they will likely survive and continue providing another mailing service alternative most folks take for granted.

Posted by: Art | September 6, 2011, 6:07 pm 6:07 pm

Let me get this straight. A SWOTT analysis was conducted over thirty years ago and a threat that was sure to lead to lower demand was identified. Direct elimination of the threat was not possible. Instead, converting the threat into opportunity was pursued. Unfortunately, changing the business model appropriately was met with resistance from entrenched managers and production employees alike. Once again, the USPS is close to bankruptcy and seeks some sort of sympathetic reaction from U.S. taxpayers and their taxing representatives. If my understanding is correct, I am somewhat sympathetic and would be willing to support some sort of tax payer funded relief but only with some strings attached. From a distance, the USPS as a whole appears to have some sort of monopolistic attitude that it is too big and important to fail despite its shrinking market share and significance among the competition. Seems to me like a couple of automakers had the same issue recently.

Posted by: Robert | September 6, 2011, 6:14 pm 6:14 pm

Some of the posters here are insane. Millions of small business would shut down, including mine, if it were not for the Post Office!!! 90% of online retail businesses send their products through USPS and could never afford to use FEDEX or UPS. I would go out of business overnight if not for USPS. So, you people think TWICE before you say we don’t need the Post Office. Get rid of the Post Office and you’ll deliver a blow to the economy that’s unrecoverable!!!

Posted by: mshare | September 6, 2011, 6:39 pm 6:39 pm

just reduce service to reduce costs. I check three PO Boxes due to business and sometimes get one piece of mail on a day, and that could wait.
how about for home delivery, deliver three times a week, some routes get monday, wednesday, some get tuesday, thursday saturday. how often do you get mail that couldn’t wait one day?
reduce staff, reduce fuel, reduce vehicles…

Posted by: jrumor | September 6, 2011, 6:57 pm 6:57 pm

JLW As in everything statistics lie. In sending a package from CT to rural upstate NY The rate quoted by UPS was about 18.50 while the USPS was 4.95. So when they say only 53% of the cost (18.50) of the mailing goes to the employee costs, that is greater than the 80% of the 4.95. The “Banckruptcy” that is looming is the 5 billionm they owe their medical pension fund in the event every retiree lives to some ungodly age artificially put in there by congress, while the UPS and Fedex contribute as little as they can towards that entitlement program called Medicare. So if two things happened, 1) the unions converted over to medicare and 2) Congress removed the future funding requirement USPS would be much more solvent. (I am one who does not see the benefit of Saturday delivery and see the benefit of reducing the number of post offices as further cost cutting measures that do not measurably impact my life)

Posted by: John | September 6, 2011, 7:19 pm 7:19 pm

JRumor Good potential ways of reducing. Just have to get Congress and the unions to agree on those changes

Posted by: John | September 6, 2011, 7:46 pm 7:46 pm

Most of the cost of operation is for the junk mail so raise the price to cover the delivery of all the junk mail. Let UPS and FedEx offer mail delivery if they can do it cheaper. We can still keep the USPS for those without computers and birthday cards, but they will need far fewer buildings and staff.

Posted by: MikeMo1947 | September 6, 2011, 7:49 pm 7:49 pm

No home delivery except for those over a certain age, maybe 80, and handicapped people who cannot get to where mailboxes are located. But even in those cases, home delivery is only twice a week. Days of delivery can be rotated based on delivery routes needed. Some may get mail on Monday and Thursday and others only on Tuesday and Friday.

Posted by: MikeMo1947 | September 6, 2011, 7:58 pm 7:58 pm

I can not believe the obsession you have with the post office. I have been a customer for 30. years. I mail bills and go to my mail box. That’s about all I think about it. As far as what my mailman makes a year, he seems to be earning it. Closing the post office or slashing wages are not going to change your lives one bit. It seems everyone thinks everybody is overpaid except for themselves. How pathetic.

Posted by: Mike | September 6, 2011, 8:10 pm 8:10 pm

They don’t know how to cut back. The USPS can start by closing low traffic offices when there is another office only a few miles away.

Posted by: newcountryman | September 6, 2011, 8:15 pm 8:15 pm

You can order stuff online but someone has to deliver it–and people have lost the art of sending hand-written letters and cards to others. Another way to be lazy. Letters and cards used to mean you cared enough to make the effort and it was nice to receive these in the mail.

Posted by: Nina | September 6, 2011, 8:54 pm 8:54 pm

Contractual promises made to unionized workers, including no-layoff clauses, have increased the post office’s costs. Labor represents 80 percent of the agency’s expenses, compared with 53 percent at United Parcel Service and 32 percent at FedEx.

Posted by: free_2_choose | September 6, 2011, 8:57 pm 8:57 pm

The days of the lazy postman are all over. In my office the carrier is on the street 6 and a half hours a day minimum. We work very hard for the money we get.

Posted by: Tom | September 6, 2011, 9:34 pm 9:34 pm

the reason our labor costs are so high is because we go to every house six days a week. Fed Ex and UPS do not. Both of those companies pay the USPS to deliver packages for them because they don’t want to make all of those deliveries.

Posted by: Tom | September 6, 2011, 9:51 pm 9:51 pm

We could close down every pizza shop in America and then you would have 300,000,00 unhappy campers. That is exactly what you are going to get when the Post Office is shuttered and your friendly mailman comes no more. How are they going to make the transition to the new wireless or whatever replacement. How much will that confuse everything and cost us another trillion. Then what about the untenable number of unemployed postal workers. The unemployment rate will sky rocket. What jobs are for them. In 60 years they have never lost a letter on me. Is this going to continue? If we do in fact lose our US Post Office it will be a big part of Americana torn away from us. Those that do not value our heritage will continue to focus on bailouts for Dow 30′s.

Posted by: Jay Adler Comment | September 6, 2011, 10:44 pm 10:44 pm

The thing that ruin the post office was privatizing and letting all those companies steel the business the tax payers paid for then it lead to its mismanagement and over paid employees. Privatizing and Outsourcing is what ruined this country now we have no economy. Duhhhhhhhhhh

Posted by: me | September 6, 2011, 11:39 pm 11:39 pm

WOW. THere really is a lack of understanding of scale from the author and from the comments

The postal service delivers more in ONE DAY than UPS does in an entire year. As a matter of a fact, UPS uses USPS to deliver a bulk of their packages/mail. Want to pay 100.00 for a 1lb package from EBAY? Want to have NO mail /packaged=sdelivered to small rural out-of-the-way areas like Wasilla Alaska? Allow USPS to fail. Go on. Do it. And I will sit back and say you people got what you deserved.

Posted by: bee | September 7, 2011, 6:31 am 6:31 am

The Postal Service has seen its time come and go. It now represents just another bloated government behemouth that serves no purpose but to keep idle public service employees off the unemployment roles. Supported by taxpayers or not (debatable since it once again seeks a taxpayer bailout), it should have disappeared in the last decade with other economic operations who have lost their function (Woolworths, Borders, Blockbuster, Milkmen, Ma Bell, Gaslight Lighters, Wagon Wheel Repairman, Telephone Booth Installers, Icemen, etc.). Times change and some of the largest, most profitable companies have disappeared. It is time for the Postal Service to take a brief bow and exit the stage of history with its cast of hundreds of thousands of spear carriers.

Posted by: vetforus | September 7, 2011, 6:38 am 6:38 am

we need the actual workers ,but need to cut the fat at the top out.

Posted by: hadenoughuc | September 7, 2011, 8:17 am 8:17 am

your labor costs are so high because you get a raise and more retirement every year .and are over payed compaired to everyone else in the private sector ,again the bubble will pop and all because of greed more more more till ya put yourselves out of a job.guaranteed you look at all the other people you know they are not making what postal employees are.

Posted by: hadenoughuc | September 7, 2011, 8:22 am 8:22 am

The PO needs to be restructured along with the greedy union contracts. A lot of people do not have computers and do not pay their bills on line. This administration has given away billions to so called green companies that are now taking bankruptcy, to foreign countries like China, I think we should restructure and save the PO and stop the money give away to failed policies.

Posted by: Freedom | September 7, 2011, 9:43 am 9:43 am

No, the post office is no longer needed in our modern society. The idea of a bailout is insane and as others have said, it’s time for the bums that collect a U.S. Treasury check for the menial labor they do on such a limited basis to go out and learn a real skill. There are many jobs going begging because no one is trained as machinists, plumbers, electricians, etc. anymore. Of course, that will require these people put out some effort and actually do some work. It will also require a bit of intelligence. In the long run, however, it will do wonders for their self-esteem and sense of worth if they really worked for a living. They can take pride in being productive members of society instead of just having the post office hand them money for basically doing nothing. This whole sham of a business has got to go.

Posted by: smaller_gov_now | September 7, 2011, 10:05 am 10:05 am

90 percent of what I receive is junk mail, and much of the remaining 10 percent could be conducted electronically. The Post Office has known about this trend for years. It’s only a matter of time before they must make big changes because relying on junk mail is a flawed business model.

Posted by: ripwxman | September 7, 2011, 11:22 am 11:22 am

My daddy always said, “Son half the people in this world are stupid.” He is right after reading a few of these posts from idiots that have absolutely no idea of what they are talking about. Does the P.O. have to change, Absolutely. Is Fedex/UPS cheaper, Absolutely NOT. Yeah you can send letters accross the country with the private services but it comes at a cost of $13.00 not 44 cents. Congress made the Post Office back fund their retirement plan and health insurance. This couple with the age of the internet has decreased the volume of first class mail. They must reduce service and close underused facilities to reflect this fact. For those posters or should I say imposters complaining of slow service and mis-directed mail, I think you are so full of crap. I have NEVER had that problem.

Posted by: Crazy Davey | September 7, 2011, 11:36 am 11:36 am

Actually the question may be moot. Since the postal service is required by the Constitution, it may take a constitutional amendment to remove it or fully privatize it. Given the requirements to get an amendment, I don’t see this happening soon.

Of course Congress could choose not to save it, but if it goes under, it may raise the same Constitutional arguement–i.e., if Congress lets it go away, then have we trully met the Constituion?

Any lawyers or Constitutional scholars have any insights?

Posted by: nick | September 7, 2011, 12:22 pm 12:22 pm

The US Postal Service is part of our American culture and many of us still use it. A letter sent to a member of the service who is overseas will be delivered by the post office. So will any packages sent to our service members overseas. Many people do not own computers and still use the mail to get bills, catalogs, etc. and still use the mail to send in their payments. KEEP THE USPS!!

Posted by: Jerie | September 7, 2011, 1:12 pm 1:12 pm

The post office is still needed, but cost must be cut. 1. Establish mailbox locations in residental areas that home owners pay for. This is already done in some cities. 2. Eliminate home delivery except those that are home bound because of a handicap or elderly. 3. Charge what it costs to provide mail service. 4. If some business wants to compete in mail delivery, let them. Finally, this needs to be phased in since it involves installing these centralized mailbox locations and laying off people during an unemployment crisis. Postal workers have served us well and work hard, but is time to make reduce the amount of financial loss. This is a useful enterprise whether it makes money or not. The public libraries are not profitable, but we don’t to close all of those.

Posted by: MikeMo1947 | September 7, 2011, 1:14 pm 1:14 pm

Just like tech companies skimmed off cream of telephone service 9long-distance) but couldn’t do local service with profit, so do UPS/Fedex, who drop pkgs at door to be ripped off because they can’t wait for signed delivery–not to mention limited deliverydates and times, and pickup locations are out of the way/inaccesible without car. FEDEX?UPS costs how much to deliver letter compared to USPS? Privatation would not be profitable.

Posted by: vernon sendelbach | September 7, 2011, 1:19 pm 1:19 pm

Are they crazy? The Post Office is the core of each city – I cannot even imagine the confusion and cost of closing their doors. If they close are we going to get reimbursed for all these stamps we keep on supply? This sounds more like someone is trying to do away with the middle class! Just another American custom they are trying to change. Those workers work very hard to get our mail delivered! I for one appreciate their hard work – delivering mail in over 100 degree weather and in sub zero conditions.

Posted by: Dorothy Kissman | September 7, 2011, 3:51 pm 3:51 pm

I cannot imagine the holidays without the Post Office. What a shame that would be to all of us!

Posted by: Dorothy Kissman | September 7, 2011, 3:52 pm 3:52 pm

As proven by the postal service’s failure the government cant run a business. To impliment a new system from making a one min: transaction into, a 5 min: transaction is real progress. Thats the PAWS system. Cost unknown but it has created more problems than progress. Thats what the government is all about, backward progress???

Posted by: bill | September 7, 2011, 3:54 pm 3:54 pm

Talking about efficiency… have you ever considered for instance replacing those heavy armored vans with something lighter and more fuel efficient? You don’t need a tank to deliver a postcard!

Posted by: Flipper | September 7, 2011, 4:06 pm 4:06 pm

The USPS was established by the Constitution. They should be getting money from the gov’t, but many nonConstitutional agencies do. So… the only thing they have a monopoly on, first-class mail, is so expensive that no one can use it! Everything is online, now… newsletters, personal notes, etc… and I miss my “hard copies!”

No, I don’t think they should close rural post offices, or end home mail delivery… but they could cut the services by half, open offices/deliver mail three days a week, instead of six. There should be a hiring freeze. Inefficient workers can/should be let go. In urban areas, rent the fancier post offices to private contractors, and allow them to offer FedEx and/or UPS, etc., alongside the USPS services. It’s odd, but one should not have to shop around for the best deal on parcels, for instance, or pay more for mailboxes at USPS sites. I also like some if the ideas at “Jerie.”

Posted by: Carolyn | September 7, 2011, 5:25 pm 5:25 pm

Since there are so many people here that don’t see any use for USPS, why not send a post card to every mailing address with two boxes (check one): Continue Service to this address or Discontinue service to this address. Then you people that see not use for USPS won’t be bothered and the rest of us that see a valuable service will still receive that service!

Posted by: Blackfoot | September 7, 2011, 5:42 pm 5:42 pm

They can stay if they just quit filling my mailbox with useless junk mail. 95% is un-solicited unwanted garbage, that can’t just be thrown away because some devious person might get your information and steal your identity. In this day I see all the ads I want on line. If they cut down on the junk mail 95% they could cut down on the labor cost to deliver it. And to the contributors who have never had their letters mis-directed, how do you know? I get wrong mail all the time and I have had mine sent to an entirely different county>

Posted by: Dumpthejunkmail | September 7, 2011, 8:35 pm 8:35 pm

They desperately need to overhaul the system to trim the “pork”, but there are cetain things that we simply can’t do without the post office, even in this day and age of multiple technologies.

Posted by: Gerry S | September 7, 2011, 8:49 pm 8:49 pm

The best thing for the Post Office to do is increase the postage on junk mail 10-fold or better. Their mail loads would decrease exponentially, as well their profits. This area seems to be their biggest loss of revenue, delivering 90% junk mail at unheard of low prices to people that throw 99% of it away. I average 7-10 pieces a day of mail and 6-9 pieces are unsolicited junk. That would be a major start for them. Oh, I forgot, massive companies run and dictate what government agencies do, not the people.

Posted by: Me Myself | September 7, 2011, 10:49 pm 10:49 pm

Anyone who thinks a letter carrier is overpaid can come do my route anyday they want. Then I would like to see what you think. We really don’t make that much money.

Posted by: Tom | September 8, 2011, 12:13 am 12:13 am

If you believe in the value of the U.S. Constitution, then believe in the value of the Postal Service. Among the few and limited powers assigned to the national government, the Postal Service remains enshrined. If it is to be privatized, a Constitutional Amendment will be required. Because communication among and between the populace of this nation is paramount to developing consensus, a valuable place remains for the U.S. Postal Service.

Disclaimer: I do not work for or derive any income whatsoever from the Postal Service; nor does any member of my immediate family or next of kin. I do on occasion avail myself of Postal Service products. I also use FedEx and UPS. In my experience, the market is large enough to welcome all three.

Posted by: Sandy | September 8, 2011, 4:28 am 4:28 am

The down fall of the Postal service is the US Govement….It started in the mid 70′s. No pay check mailed…had to have a bank account for direct deposit. Then it was Social Security..Had to be direct deposit. Then it was govement retirement…direct deposit. Each one of those direct deposits lowered
the income of the Postal service. How many receive Social Security and other retirement incomes times the cost of a stamp and it ends up in lost of millions to the postal service . The company you work for even direct deposits your check.

Posted by: GeoM | September 8, 2011, 10:30 am 10:30 am

The U.S. Postal service delivers mail and packages to your door daily. FEDEX and UPS cannot provide this service at the same cost. FEDEX and UPS specialize in packages not letters. If the Postal Service is discontinued how will millions of people get their mail ? FEDEX and UPS don’t want any part of local mail delivery, they only want the high profit making business of delivering packages and don’t have the personnel or equipment to deliver letters house to house. FEDEX and UPS have taken away the profit margin that the U.S. Postal service once had. Email has also made a dent in normal mail delivery but, people still send millions of letters and pay bills through the U.S. Postal Service

Posted by: Bob | September 8, 2011, 11:47 am 11:47 am

I still working at FedEx for 12 years. I worked check sorter for FEDEX . FEDEX and UPS shared with information about delivering mail for U.S. Postal service. U.S. Postal service used FEDEX aircraft for sending delivery mails and packages over Untied States and countries. It does same with UPS. The U.S. Postal service have agreement with FEDEX for paying service on aircraft transportation. The U.S. Postal service doesn’t have their own aircraft. The U.S. Postal service cannot afford aircraft. The aircraft and equipment cost a lot of million also requiring mechanic and technician. FEDEX eliminated some position due on new technology and saving cost labor recently.

Posted by: Barry Calica | September 8, 2011, 1:06 pm 1:06 pm

I agree with the postings of ZELLIE, MAGGIE, HHH, of 9/6/2011 and CAROLYN of 9/7/2011
In addition to that I must state that I have a computer with access to the Internet. However, I have NEVER wanted to use any source offered that requires I post my personal information such as “on line banking” Even now when I make a payment via check (sent via the USPS) to a company – and the amount is automatically deducted from my checking account – I resent it.

I certainly NEVER want to be placed in the position of posting ALL my financial data on the Internet. I have no argument should the USPS find the need to cut the amount of delivery days per week. However, they MUST continue some sort of scheduled delivery. Thank you.

(Your form does not reflect the need for an email address – for what it is worth.)

Posted by: Marion Damroth | September 8, 2011, 1:15 pm 1:15 pm

The postal service (not us post office) is privately owned so how can it be privitized? That is why workers are exempt from SS. They have billions to give to left wing orgainizations so why are they broke? The constitution provides for government post offices but the federal reserve changed that as they changed the entire constitution.

Posted by: Arlene Hulse | September 8, 2011, 1:29 pm 1:29 pm

A lot of you complain about the percentage of labor costs in the USPS compared to FEDEX and UPS. The post office delivers mail to every single home and business 6 days a week every single year. Every one! We are under contract with FedEx and UPS to deliver the packages to far out homes that they do not wish to deliver! If FEDEX and UPS had to deliver to every single address every day do you think they would have any less percentage of labor costs?

From 2006-2010 the USPS actually had an operating profit. The USPS has been losing money only because of Congress forcing the USPS to prefund a retirement account for 75 years into the future in just 10 years. That is something that NO, I repeat, NO other company in the COUNTRY is required to do. Only a small percentage of companies prefund at all, let alone for 75 years into the future. Most companies pay towards their respective retiree accounts each year. So basically Congress is to blame for the USPS downfall.

If service is cut back from 6 to 5 days a week, that would result in a job loss of 120000. The Postmaster General has even been on record saying that once it is cut to 5 days he would look into cutting it back to 4 days, so long the rest of the full time workers. The USPS employs over 600000 people. Think about that. If the USPS cut back to 5 days a week, UPS and FEDEX would swoop in to pick up that extra day of delivery, leading companies who ship with USPS to switch. The USPS would lose more money by cutting a day in the long run.

Posted by: Jason | September 8, 2011, 4:20 pm 4:20 pm

I do not believe we should eliminate the USPS. We do need this kind of service but I am extremely
annoyed by the need to purchase insurance and delivery confirmation. I am a CUSTOMER. I should not be required to insure the goods that I’m mailing. If I purchase postage for the delivery, I expect them to do their job. If I purchase gasoline, I expect that it will provide energy to run my car.If I pay for phone service, I expect to be provided with all the features which were outlined in the contract that they sold me.

I’ve not only had deliveries made without being signed even though I purchased delivery confirmation by signature. I’ve had packages delivered that were empty when accepted by the
person for whom I sent the package.

These failures were a devil to pursue with the post office. If I had not persevered by informing
my local postmaster that I could not afford to reclaim many of the items that were mailed. Some of the items were purchased on sale & I saved them for a birthday. The loss meant I could not replace them for the same cost that I originally paid for these gifts. Were it not for the compassionate attitude of some of the local postal employees, I would not have anything to do with the USPS.
Furthermore, most postal employees rarely have a smile when they greet you. I once said to one person that they ought to be glad to have a job & should show it by greeting their customers without projecting the sense that they were doing me a favor by waiting on me.

I would be delighted to be hired to help solve the problems the USPS has to contend with but anyone over 60 or 70 is considered to not have what it takes to do a job. The benefits of working for the USPS should provide enough incentive to solve the problems that exist. Obviously the management leadership has not provided the creativity, strategic planning and perseverance to
deliver on their Mission.

Posted by: CONFLICTED IN MICHIGAN | September 8, 2011, 11:12 pm 11:12 pm

Ben Franklin the first Post Master General started the United States Post Office. Today we still need the Post Office. How are people living in the back country going to get their mail?

Posted by: John G. Parisi | September 9, 2011, 7:57 am 7:57 am

Really…Do you know anyone that works at the PO? Do you not understand how many people will be out of work? The USPS has been asking for years to cut back on the amount of days that mail is delivered and has been told no by Congress. The USPS has been attempting to save its self. Its more than just mail, for a whole lot of Americans it is the way they make their living. Everyone does not have a computer or bank accounts for direct deposit. Did you know that USPS delivers and collects packages for UPS? STOP, get your knowledge up. The Unions should understand if the USPS is no more who cares about a contract.

Posted by: House | September 10, 2011, 9:04 am 9:04 am

US mail post office is important.. The USPS in inneficiant as is all of US GVT. First action should
be to eliminate most of the vehicles the USPS uses. Mailmen can deliver the mail on foot as they
historicaaly have done and still do. They do not need to have a jeep sitting next to a drop off
box. I am talking about thousands of vehicles not needed. Postal workers are great people but the
leadership is pathetic same as US GVT managing something and everything fails and all the
idiotits in Congress give themselves a pay raise..USPS failing, Social Security failing, Medicare
Failing and every other program the USGvt is in involved fails. The idiots in congress send zillions on doll;ars overseas and corrupt dictators get rich

Posted by: Jim MacFarlane | September 11, 2011, 9:48 am 9:48 am

Junk Mail opt out.

Posted by: Taylor | October 20, 2011, 9:00 am 9:00 am

The postal service is going the same way the Pony Express went when the telegraph came about.

Posted by: Moonraker555 | October 21, 2011, 1:46 pm 1:46 pm

Our small business has another lost delivery to our customer. This time a Priority Mail package marked perishable that sat on the local post office shelf for days. Product is now spoiled and no refund of postage, we the small business are out hundreds of dollars. Tough luck is all we got from the offending post office. Though we’ve tried to support our local post office, especially on the news of closing USPS locations, service at the USPS has become so dismal it is time to give up on them.

Posted by: smallbizusa | October 26, 2011, 2:39 pm 2:39 pm

Has anyone figured out exactly how much the post office would need to charge for stamps and shipping to balance its budget? 44 cents is a ridiculous deal for a hand-delivered letter. If I had to pay 60 or 70 cents, I would gladly do that to keep my postal service. Has anyone compared the cost of mailing a letter in Germany or Japan? Where do we stand in terms of cost of mailing with the rest of the world. If we are getting a bargain, maybe it’s time to bring USPS postage in line with its costs. If we are paying on parity with the rest of the world, maybe it’s time to look at what some of these other systems are doing and radically rethink the USPS model. I really don’t believe that it’s too late to save the post office – but it may be too late to save the version of the postage and post office that we have right now.

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Posted by: Brice Chapparo | December 10, 2011, 7:08 pm 7:08 pm

the postal service is need to help the economy.. the postal service is not going like the pony express, because there are a many people that do not like using it for personal information

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no

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Posted by: Hung Gellespie | February 23, 2012, 3:19 am 3:19 am

The US Postal Service has the world’s third largest computer system, including 5,000 remote locations with satellite internet service. Corporate America is wringing their hands with delight. Imagine the potential for an entrenched system like that. It’s an advertising mecca. Of course they want to privatize the USPS! And find ways to spam us to death like they do on the Internet. And also charge exorbitant prices to deliver a letter. Then,as a private industry, when they declare themselves insolvent and too big to fail… Oh the bailouts. Help us. Help us.

Think about it. The entire mortgage industry debacle shifted wealth to a few corporations. The banking bailouts shifted wealth to a few corporations. They desperately want to privatize social security to shift that wealth to a few corporations. These are the pillars of society! What is left? The post office and the food supply. Mark my words. This is not chance happenings. It’s been in the works for quite a while now.

Posted by: Anonymous | April 3, 2012, 10:30 pm 10:30 pm

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