If you think about the USPS as an independent corporation, it would be crazy to think about these results: a government approved monopoly, massive tax-shields (no business income tax, no property tax on post offices). Then, you contrast that with their one big weakness - they can't set their own prices. Congress sets the postage rates. Talk about an incredibly inefficient way to run a business - seems a great counterpoint to anyone who thinks government should be more involved with business.
Here's a quick and drastic solution to the USPS problem.
1) Give them the ability to set their own prices. They have competition in the form of UPS and FedEx for large packages delivered to your door. Chances are those prices wouldn't change. The rate for a stamp would potentially double. Is that a bad thing? Seriously, what percentage of the stuff you get in the mail is actually useful? 10%? 5%? Yes, there are some businesses who depend on cheap mail, but in effect the US taxpayer is subsidizing their business then. It's no different than the US bailing out the car companies in that regard. This price increase would probably decrease mail volume considerably.
2) Reduce delivery to 3 days a week. Would anyone complain about this? How many people even check their mail every single day without fail? Again, this may hurt mail-based businesses, but they are already existing in an artificial business environment skewed by government subsidies. Going from 6 days to 3 wouldn't cut costs 50%, but I think 20-25% cut in costs is reasonable to expect, considering the volume decrease.
These two things would quickly make the USPS profitable. As everyone here has pointed out, it's not 1980 any more. There's better way to transmit information from one person to another.
Here's a quick and drastic solution to the USPS problem. 1) Give them the ability to set their own prices. They have competition in the form of UPS and FedEx for large packages delivered to your door. Chances are those prices wouldn't change. The rate for a stamp would potentially double. Is that a bad thing? Seriously, what percentage of the stuff you get in the mail is actually useful? 10%? 5%? Yes, there are some businesses who depend on cheap mail, but in effect the US taxpayer is subsidizing their business then. It's no different than the US bailing out the car companies in that regard. This price increase would probably decrease mail volume considerably. 2) Reduce delivery to 3 days a week. Would anyone complain about this? How many people even check their mail every single day without fail? Again, this may hurt mail-based businesses, but they are already existing in an artificial business environment skewed by government subsidies. Going from 6 days to 3 wouldn't cut costs 50%, but I think 20-25% cut in costs is reasonable to expect, considering the volume decrease.
These two things would quickly make the USPS profitable. As everyone here has pointed out, it's not 1980 any more. There's better way to transmit information from one person to another.