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-Signs, Portents, and the Weather-
Experts See Dim Future for U.S. Postal Service
2009-01-30
The post office could be going the way of the pony express.

A day after Postmaster General John Potter threatened to cut mail delivery from six to five days a week, postal experts, direct marketing executives and politicians alike said the outlook for the quasi-governmental U.S. Postal Service is bleak.

"It certainly represents a divergence of mail service as we know it," Postal Regulatory Commission Chairman Dan Blair told FOXNews.com of the potential move to five-day service as a cost-cutting measure. "But we don't really rely on mail the same way we do today as we did five, 10 years ago. Our expectations of postal service are different from a generation ago."

Illinois Rep. Danny Davis, chairman of the Federal Workforce, Postal Service and the District of Columbia subcommittee, said it's a matter of unavoidable truths.

"We've seen this coming for several years now, quite frankly," Davis told FOXNews.com. "The volume simply is not there; e-commerce has taken its toll. We used to write letters to grandma and stuff like that, now we just don't do that anymore. You can't deliver what's not there."

Citing inflating costs, a $6 billion budget deficit and the largest annual decrease in mail volume ever, Blair said the Postal Service has entered uncharted territory, even worse than in the 1990s, when the USPS considered eliminating window services.

"This is different because we've seen a decline in volume across all classes in percentages not seen since the Great Depression," Blair said. "You couple that with the decline in first-class mail as well ... the mail mix isn't as profitable for them as it once was."

Cutting a day of service would have to be approved by Congress and postal officials, but it could save roughly $1.9 billion a year, Blair said.

Still, with postal rates expected to rise in mid-May, it'll be a hard sell to the American public.

"If it was a normal business, their customers would turn to someone else," Blair said.

During testimony before a Senate subcommittee on Wednesday, Blair said eliminating a day of mail service may expedite the decline of mail volume and suggested that the closure of some post offices should be considered.

"That's something I would recommend," Blair told FOXNews.com. "[But] this raises serious public policy implications. In rural America, the post office is the face of the American government. Closing post offices brings out very parochial concerns. It's an area where they could save money, but it's an area that will receive a lot of political attention."

Bob Cohen, a former Postal Regulatory Commission official, was even more pessimistic about the agency's future. "The model may be in jeopardy now," Cohen told FOXNews.com. "They've got a problem. As the role of the postal service becomes less and less important as a communications medium, I guess it's going to have to shrink. It's very foggy right now what the future is."

But Jerry Cerasale, senior vice president of government affairs at Direct Marketing Association, said eliminating a mail day -- possibly Tuesday, the slowest mail day of the week, or Saturday -- could seriously affect direct-mail firms, periodicals and other firms that utilize mail. "This is not the time for the postal service to raise rates and cut service," Cerasale told FOXNews.com. "It puts us in a very difficult place."

Perhaps more troubling than the specter of losing a day to reach customers is an estimated volume drop of 14 billion pieces of mail for fiscal year 2009, Cerasale said. "That for us is big news," he said. "Many firms who use mail don't come back because they find other ways to reach their potential customers."
Posted by:GolfBravoUSMC

#18  a $6 billion budget deficit
and
Cutting a day of service would have to be approved by Congress and postal officials, but it could save roughly $1.9 billion a year, Blair said.

I could live w/ 3 days mail service. Problem solved.
Posted by: ed   2009-01-30 23:01  

#17  F'em. Raise the stamp price to $5.00 and let's sink the sunnuvabich right now.

Or we can be realistic and not expect delivery to every single home. A mass mailbox location on intersections would help the USPS and still not reqiure much of the user.
Posted by: Mike N.   2009-01-30 22:40  

#16  REDDIT > GLOBALRESEARCH.CA - FOR THE FIRST TIME THE WORLD FACES A TRULY GLOBAL ECONOMIC CRISIS.
Posted by: JosephMendiola   2009-01-30 19:41  

#15  ION REDDIT > 46 OF 50 US STATES FACE SERIOUS BUDGET SHORTFALLS IN 2009 AND BEYOND [ US Multi-State(s) Bankruptcies forever and ever]???
Posted by: JosephMendiola   2009-01-30 19:40  

#14  Now, now guys, don't start getting disgruntled . . . .

This is the weird part - FedEx and UPS people work harder and get paid less than USPS employees, but you've never heard of anyone "going FedEx" or "going UPS", have you? It's always been "going postal".
Posted by: Zhang Fei   2009-01-30 17:57  

#13  Now, now guys, don't start getting disgruntled . . . .
Posted by: Mike   2009-01-30 16:16  

#12  The USPS union is like the UAW. It imposes work rules, wages and benefits (relative to UPS and FedEx) that make the USPS non-competitive in packages, service- and price-wise. If UPS and FedEx were allowed to deliver First Class Mail, the USPS would be much deeper in the red.
Posted by: Zhang Fei   2009-01-30 15:00  

#11  If UPS or FedEx were required to service every address (old or new) every day they too would have serious problems. As it is, there are packages to deliver as long as Scooter is in business. Note: USPS freight seems to be competitive and there are a lot more locations if you are not a business.

There is a large portion of the population that NEED the service, at a minimum for bills (receive and pay) if not correspondence. Not all live their lives tied to a computer. Postal Service, like military, fire or police, is a basic service of government. When the USPS was supposedly made into a business I had serious questions as they were still run by Congress (we all know how well that works). They are legally REQUIRED to provide these services. And there ain't no free lunch.
Posted by: tipover   2009-01-30 12:10  

#10  Darth, I just sent a payment request for the Vader figure. I'm out of pancake makers, and I don't deal in milkshakes. Lemme know if there are any Golden Age comics or pulps you're looking for....
Posted by: Scooter McGruder   2009-01-30 11:28  

#9  Good point, Besoeker. My mail guys look like they either just got outta rehab or are getting ready to go in.
Posted by: tu3031   2009-01-30 10:40  

#8  I remember when Australia elected a socialist government in 1972, they cut mail deliveries from 11 weekly to 5, and quadrupled the basic stamp price.
Posted by: Grunter   2009-01-30 10:38  

#7  Scooter...
I would like to place an order for a Dora pancake maker...
A 30" tall articulated Darth Vader figure...
And a large milkshake.

Send me the Paypal invoice.
Posted by: DarthVader   2009-01-30 10:38  

#6  If they have to cut a day, I vote for Tuesday. Going without mail on Sunday is ok, but two consecutive days without service would put a crimp in my eBay business. My customers expect to get their stuff ASAP! And frankly, I don't see UPS or FedEx as the solution.
Posted by: Scooter McGruder   2009-01-30 10:25  

#5  Everyone needs to chip in & help. Send every "Business Reply Mail" envelope you receive, back to the sender. Judging from the number of envelopes I get in my junk mail, that alone would erase the postal service deficit.
Posted by: Anguper Hupomosing9418   2009-01-30 10:22  

#4  Every day in the hood I see 2 Fed Ex trucks and 2 UPS trucks in the hood- and then the USPS delivers the junk mail.
Posted by: newc   2009-01-30 10:01  

#3  Back in the old days, before there was the Murtha/Byrd/etc patronage by earmark, the postal service was the patronage job operated by your local congresscritter. Making it 'professional' meant the crooks congresscritters had to find new and even more expensive venues of patronage. Today we don't see a lot of personal return on earmarks where as you at least saw real work being done with the performance of your servicing post office back then. At least in the old days, when someone screwed up the mail you could directly hold your congresscritter personally responsible. Call it quality control.
Posted by: Procopius2k   2009-01-30 09:08  

#2  "This is not the time for the postal service to raise rates and cut service,"

Uhhh, yes, it is.
Posted by: Parabellum   2009-01-30 09:05  

#1  Postman Fred Cooper, the fellow in the picture. The one with the sharp uniform and hat, military style haircut and friendly smile who looks like he could have been war veteran. He doesn't look a thing like my mail person. Wonder if that has anything to do with it? Who knows, just say'n.
Posted by: Besoeker   2009-01-30 08:16  

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