The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.
Uploaded by traynickel on Sep 5, 2011
"Our situation is extremely serious," the postmaster general, Patrick R. Donahoe, said in an interview. "If Congress doesn't act, we will default."
The average adult receives 41 pounds of junk mail each year, according to 41pounds.org, a nonprofit organization working to eliminate it.
Junk mail, like advertisements, isn't as lucrative as first-class mail but it is increasingly the only mail that carriers have to deliver. In 2009, 59 percent of what was stuffed in your mailbox was advertising.
First-class mail, like personal letters, bills and payments, has traditionally generated more than half the postal service's total revenue, but it continues to drop.
Snail mail is on the same fast track to death as the Yellow Pages and classified ads, all thanks to the Internet.
Employers are always quick to blame pensions on their financial woes, but their sales have been declining for years! I don’t know which planning manager at the U.S.P.S. did not see e-mail as a possible threat to its regular mail business? While that part of their business model might have declines, their package service has increased due to the rise in internet sales. Amazon and eBay package shipments alone should have pushed quite a bit of customers through their doors to use the package service.
Here’s a video below highlighting some of the U.S.P.S.’ problems. What do you think that they should do?
Here’s a video below highlighting some of the U.S.P.S.’ problems. What do you think that they should do?
Uploaded by iwatchucam on Sep 7, 2011
U.S. Postal Service Near Default - Chapter 11 Bankruptcy
The U.S. Postal Service does not have the money to meet an obligation to a retiree health care trust fund coming due at the end of the month, but if there's a default, officials promise no interruption in the mail, the payroll, or payments to suppliers.
Commenting in response to a New York Times article Monday suggesting the Postal Service may have to shut down within months, spokeswoman Yvonne Yoerger told CNN there's "nothing actually new in the Postal Service's position."
"We are required to make this $5.5 billion dollar payment into the future retiree health benefits fund, and probably won't be able to make it when it comes due September 30th."
The fund was mandated by a 2006 postal reform act that postal officials today believe does not match the reality of declining revenues and a smaller workforce. Tuesday, congressional lawmakers will address the matter in a hearing on postal operations.
Yoerger said at that hearing, Postmaster General Patrick Donahoe will insist that the fund be re-scaled from the days when there were 900,000 people on the payroll. The mandated funding level has not changed in the years since then, although the Postal Service has trimmed 250,000 jobs.
She said "the fact is, no other government agency, and few corporations in the private sector are required to fund retiree health benefits 75 years out."
The newspaper quoted U.S. Sen. Thomas Carper, D-Delaware, as saying the financial problems are so dire the Postal Service may close later this year.
Let’s face it. The United States Postal Service as we know it is soon to be a thing of the past. Despite holiday cards andNetflix subscriptions, the mail is just another service that is struggling to adapt to changing times.
Contributing sources:
Friday, July 22, 2011
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