No easy fix for Postal Service

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July 15, 2010

2-cent stamp boost won’t solve financial ills

Anonymous The Tribune-Democrat The Tribune-Democrat Thu Jul 15, 2010, 01:00 AM EDT

— The next time you see an American flag flying half-staff on a U.S. Postal Service facility, it just might signify the further demise of our nation’s once-proud post office.

Not surprisingly, Postal Service officials have announced that the delivery service’s financial crisis is deepening – in a big way. It’s facing a whopping $7 billion loss this year and is already projecting a similar deficit for 2011.

That’s huge.

As most businesses do when times get tough, it’s looking to increase the cost of its products. In this case, that means boosting, among other things, the price of first-class stamps, something it has done every year since 2006.

But unlike in the case of many other businesses, it isn’t that simple. A price increase won’t stop the bleeding.

What will, it now seems obvious, is beyond anyone’s immediate grasp.

“There is no one single solution to the dire financial situation that the Postal Service faces,” Postmaster General John E. Potter said. “These proposed rate adjustments are moderate and part of a fair and balanced approach to insuring mail service for all Americans well into the future.”

Is he kidding?

Here’s what the Postal Service is asking for come January (approval must come from the independent Postal Rate Commission):

* First-class stamps would rise 2 cents, to 46 cents.

* Post card rates would go up 2 cents, to 30 cents.

* The price to send periodicals would be boosted 8 percent, and other rates for advertising mail, parcels and services would rise by varying amounts.

Every American will be affected in one way or another by the increases, whether by mailing a letter or package, or by paying costs passed along by those businesses facing rising costs to mail or ship their products.

And although it would be easy to continue to criticize the Postal Service for mismanagement and waste, it has not stood pat while its financial plight has worsened.

In 2009, for example, it cut 40,000 full-time positions and made other reductions including closing facilities, yet still lost $3.8 billion.

Currently being considered is a proposal to reduce mail deliveries to five days a week by eliminating deliveries on Saturdays.

While the Postal Service’s troubles can be traced to several reasons, chief among them are the ever-declining mail volume as people and businesses shift to the Internet, and a weakened economy.

It would be a shame to witness even more cuts among dedicated employees, and additional facility closings such as long-time community post offices.

At what point the bleeding might stop, if ever, is anyone’s guess.

The post office, though part of the government, does not receive a tax subsidy for its operations.

We don’t want to see that change.

Public transit services have been unable to operate without taxpayer subsidization.

We don’t want to see mail and package delivery services depend heavily on the same.

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No easy fix for Postal Service

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