Desperate for cash, Postal Service hikes stamp price
A 1-cent jump in the price of stamps comes as the USPS struggles to stop the financial bleeding.
For those of us still using snail mail, there’s another price hike coming from the U.S. Postal Service.
Starting on Sunday, and as announced last October, the Postal Service will be raising the cost of a first-class stamp by a penny, to 46 cents.
Postcard stamps also increase 1 cent to 33 cents, and letters to all international destinations will now have one set price of $1.10.
Not that these rate hikes are likely to have any significant impact on the USPS’ ongoing financial woes.
While it has seen record growth in its package delivery business, the Postal Service continues to bleed money, hobbled by what one of its press statements calls “an inflexible business model that hinders its ability to be self-sufficient.”
For fiscal 2012, the Postal Service defaulted on $11.1 billion in mandated payments to the U.S. Treasury -- which in turn contributed to a record loss of $15.9 billion.
The USPS receives no tax dollars for its operating expenses, relying on the sale of postage, products and service for funding. It’s been reducing its annual cost base by about $15 billion since 2006 and has cut its workforce by 168,000, or 24% -- while reducing hours, closing some small post offices and consolidating others.
Part of the issue is the rise of email and other more immediate forms of communication. The Postal Service’s volume of single, first-class mail has reportedly been cut in half since 2002 -- and its total mail volume is down 25% since 2006.
There’s a petition on the White House web site, meanwhile, urging the Obama Administration to "Save the Post Office."
“The Postal Service is not a federal agency,” the petition notes. “It does not cost taxpayers a dollar. It loses money only because Congress mandates that it do so.”
The petition goes on to warn that if Congress doesn’t take action, the USPS could go bankrupt later this year -- and it urges lawmakers “to free the Post Office from its congressionally mandated obligations and allow it to raise additional revenue so that it can become self-sustaining once again.”
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The post office could easily make a profit if they didn't have to pay those ridiculous funds to the government that no other entity has to do. It's just another fund bucket for the government to steal money from such as they do with our social security funds. I think the majority of people out there like to receive mail. I know I look forward to it.
A long time ago, the congress, in thier infinite stupidity, raided the bank acccounts of the Postal Service and never paid them back. At that time ,the U.S.Postal Service was the only dept. ,under the heading U.S., that had a surplus in thier accounts, not lost on the congress, who at the time ,could not pay thier way out of the bathroom. So they "borrowed " from the service and at a later date, required the Postal Service to pay to the treasury a whopping 5Billion dollars per year, for what, some of us have been asking that for years,but lately the congress has increased that amount. These congressional shennaigans have added to the Sevices ability to compete with private sector package shipping companies, whose stock is undoubtably held by some of those in congress or thier families. Well, now, if the Postal Service goes bankrupt, who do you think is going to benefit,,,, the package shipping companies, then thier stock value increases and the stock holder makes more money,i.e... the members of congress and thier "straw buying" families. Now, I think, a good way to start , is for congress to get out of the way and allow an institution ,of the original United States to continue thier work on a level playing field, without government interference. For once, I would like to see congress and Washington, as a whole, "practice what you preach",get out of the way and let them do what they do best, that's Deliver, something congress has not done in a very long time!
Seems to me, The bill collectors need the post office more than I do.
The government should not be involved at all. Let them compete like all other private companies. They either survive or they go out of business.
THE DAYS OF THE HORSE CARRIER IS GONE. BUT THE RATE YOU GET IT AT,.IS JUST AS SLOW AND ...NOT GOVERNMENT RUN BUT GOVERNMENT CONTROLLED...One point ; I know a man at out local Post Office, 20 years in the military, retierd with full benefits
38 years old, comes home get job with local P.O. been there 25 years, getting ready to retire from there with full benefits...Nothing worng with that, 45 years working for the Government, he's has made a good living... Now he has full medical from the military, full PX benefits, he can buy his food on base his med's on base, anything he needs on base. Then you hear this BS, about the Post Office can't keep it's head above water. will the cost of evrything is high and going up...Proven fact some people make good calls wthen their young and some make bad ones, Look's to me he made a good one many years ago............Good for him....You can bet he don't make $175.000 to $425.000 a year for life, as those Fat A$$'s do in DC. they are the ones someone needs to kick to the street, starting with O'Bams.
Congress has come to be A BIG JOKE/ and O'bams Admin. is nothing put a bunch of ( DERANGED CLOWN'S). The Senate will there's no words for them............
If everyone gets as much junk mail as I do , that should be enough for the Post office to break even??
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