Jennifer Levitz’s article, in the WSJ, “Post Office Wants More Than Mail” doesn’t go far enough in explaining why the USPS is losing money or how it can turn around. There’s an ad running on TV suggesting USPS is losing money because they must pay huge fees to the Federal Government. Levitz doesn’t mention any such fee nor could I find one. The ad is probably referring to the Postal Accountability and Enhancement Act of 2006 (PAEA).
The PAEA, which made over 150 changes to postal law, is a good example of over regulation. Included in the regulations is the requirement for the USPS to prefund its future retiree health benefits. Another contributing factor to the poor financial condition is the union. Levitz reports that the union has hired an advisor to make the USPS more viable. This is like putting the fox in the henhouse, asking him for suggestions on how to control the hens.
The post office wants to increase first class stamps by one cent, to make up for lost volume. One thing that hasn’t decreased is junk mail. Just this week I received a solicitation for classical music (I’m pure country) and an ad for mail order dog food (I live in a condo that doesn’t allow pets and I hate dogs.) Organizations, such as those mentioned, apparently have so much money that they don’t even do marketing research. Rather than raising my postage one cent why don’t we increase the rates for advertising, presorted mail, and non-profit organizations? The airlines have got away with over charging businesses for years. Why can’t the post office do the same?
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