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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WITH REPUBLICANS DOMINATING THE HOUSE, HOW DOES ANYBODY EXPECT THE "GOVERNMENT" TO SAVE THE POST OFFICE?
Volume is down 50% since 2002 and they think reducing the amount of employees only 24% is going to help. Maybe some business 101 classes would help the fools at the USPS. Let them go bankrupt then they won't be bound to ridiculous union pensions and retirement packages.
Seems to me, The bill collectors need the post office more than I do.
Conservatives here are advocating for wage-busting....
How privitization kills us..
Privatization is a prescription for national suicide.
Privitized Gasoline in America: $3-$5 a gallon.
NATIONALIZED/Socialized VENEZUALAN gasoline: 25 CENTS per gallon at the pump IN US DOLLARS.
Privitization is meant to kill the middle class and grow the wealth divide to favor the rich and impoverish the poor.
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[BRIEFING.COM] Range-bound action continues with the S&P 500 trading inside of an eight-point range that has held since the open.
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