U.S. Postal Service

Postal Banking Not Serious

A century-old public utility model is not the best way to address America’s two-tiered consumer financial system; competition and regulatory reform is.

Postal Service in Crisis

Mail volumes are falling and the U.S. Postal Service is losing billions of dollars a year while accumulating large liabilities.

To Save the USPS, We Must Privatize It

The U.S. Postal Service has been losing money for more than a decade. Its financial outlook is bleak, with $110 billion in unfunded retirement costs and more liabilities accruing every year.

Postal Service: Meltdown of the Mails

The U.S. Postal Service is in a growing financial crisis as mail volume continues to plunge. The Government Accountability Office says that a “comprehensive package of actions is needed to improve USPS’s financial viability.”

Privatizing the Royal Mail

Britain privatized its Royal Mail in 2013, proceeding with an initial public offering of shares that raised about $2.7 billion. The government pursued the reform because the company faced falling mail volume, and it needed to reduce costs and increase innovation. Similar issues face the U.S. Postal Service.

U.S. Postal Service to End Saturday Mail Delivery

The U.S. Postal Service announced today that it intends to end Saturday mail delivery beginning on August 1st. According to the USPS, the move would save the government’s beleaguered mail monopoly $2 billion a year. The USPS has lost over $40 billion since 2006 and it has maxed out its $15 billion line of credit with the U.S. Treasury. With mail volume in permanent decline, the USPS has no choice but to try and cut costs.

Should the USPS Diversify into Nonpostal Markets?

One possible solution offered up for the struggling U.S. Postal Service is to allow it to diversify into nonpostal commercial markets (e.g., insurance, logistics, banking, etc). After all, the share of revenue generated from diversified products at foreign posts has been on the rise and in many cases now accounts for the majority of a post’s revenue.

U.S. Postal Service Default

No, the U.S. Postal Service won’t close on August 1st because it can’t afford to make a required $5.5 billion payment into a federal fund for postal retiree health benefits. Yes, the entire situation with the USPS is a mess. But when you have politicians ultimately trying to run a commercial operation, constant clean ups in aisle four are to be expected.

Postal Reform: A Telling Survey

First-class mail is the USPS’s most profitable product. Thus, the large – and permanent – drop in first-class mail volume has the USPS facing red ink as far as the eye can see. The U.S. Postal Service’s inspector general recently reported its findings from focus group discussions held with high-volume first-class mailers and mail service providers. The feedback is quite telling:

Senate Postal Reform Bill

The postal reform bill passed in the Senate last week is further evidence that politicians shouldn’t be entrusted with running a hotdog stand, let alone the nation’s mail. The U.S. Postal Service is supposed to operate like a business, but congressional micromanagement makes that impossible. Nevertheless, 62 senators voted for an eye-glazing 191-page bill that would keep Congress’s hand placed firmly around the USPS’s neck.

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