government

Postal Service Doomed by Worst Ever Congress

Mar 28 2012

Seven months ago we wrote of the U.S. Postal Service's dilemma in this article. Although not funded by the government, neither is it a standalone business free to manage itself. Faced with collapse and living on borrowed money, it must nevertheless seek Congressional approval to make key changes.

With first class volume down a quarter in just the last three years, as everyone switches to the Internet to pay bills and e-mail friends, Postmaster General Patrick Donahue needs that approval to end Saturday delivery, raise the base 1st class rate to 50 cents over five years, and end the draining requirement to pay in advance $5.5 billion a year for future retirees' health care.

Donahue is free to close post offices and mail sorting hubs — he has targeted 3,653 of the nation's 32,000 offices that have less than $27,500 in annual revenue, and half of the 487 hubs, which would add a day to delivery time — but those Congressional approvals are held hostage in this election year by Congress members concerned only for votes. Folks in their home districts want no change in convenience or services, and of course do not want to pay anything.

So, months on, Congress continues to do nothing while the Postal Service loses over $1 billion a month.

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