Many of you who use the post office, heard last week that the US Postal Service is suggesting a .50 cent stamp as the standard cost for mailing a letter. We don’t suppose this shocks anyone as the US Postal Service is heading for bankruptcy. Its estimated loss this year is predicted at $13 billion.
By eliminating Saturday delivery and by laying off 100,000 postal employees and shuttering thousands of post office facilities, the loss could be cut by $4 billion or more.
That’s some cost savings or debt savings, whatever one chooses to call it.
But what about next year and the year after that? How does the US Postal Service return to profitability?
It doesn’t and it won’t until the entire model by which it is run today changes.
That is likely not to happen until it fully collapses under the weight of its mismanagement but mostly because the times have changed but the US Postal Service never changed with them.