The United States Postal Service is expected to run out of money in 2011. From 2007 to 2010, the USPS lost $20 billion in revenue. Now, the organization is approaching its congressionally imposed total debt ceiling of $15 billion. Our new congress should be hesitant to increase this. Recently, the Postal Regulatory Commission denied a postage rate increase. Increasing rates with further depress volumes, presenting the USPS with a catch 22.
Meanwhile, the American Postal Workers Union, representing over 200,000 workers, has begun collective bargaining negotiations for a new contract. The union president has stated that his members are “entitled” to pay raises and demands the union get “more control over activities at work, more money, better benefits—we want more.” Including their fringe benefits, postal workers already receive 35% more than comparable private sector employees, according to expert Michael Schuyler.
Will regulation of the internet come to the rescue of the USPS? Don’t rule out this possibility. The internet and electronic alternatives to snail mail are to blame for the troubles of the Postal Service. The federal government has just taken its first bite out of this juicy internet fruit and it will be difficult to stop. I wonder if a small tax on each email message isn’t already under consideration.
Moe Lane
PG DeFreese
Victoria Coates
Daniel Horowitz
Dan Spencer
But the internet already helps the USPS
GregInFla (Diary) Saturday, December 25th at 6:42PM EST (link)I can get and pay for a label for a package, and order the USPS to pick up the package at my home, for free. That is something that the others, like UPS, will not do: pick it up at my home for free. I use priority mail whenever possible: it is convenient and competitive.
One problem the USPS has is that it has to price each class of service to break even. It cannot lower prices on one class, like overnight or first class, to get more volume, and make up any losses on other classes, like priority mail. Congress made this rule, and USPS’s competition has no such rules to follow. I am sure that UPS makes more money on overnight/2-day service to cover any losses on long-haul ground freight. USPS cannot do this.
– A true evolutionist would let endangered species die off. Think about it.
– The sign outside the courthouse said no signs allowed. So I took it down.
– Atlas Shrugged is now on the non-fiction aisle at Amazon.
Depends
Charlie (Diary) Saturday, December 25th at 10:16PM EST (link)Sure, if you live in rural Alaska it is a great deal — extremely “competitive”. However, if you are a taxpayer, not so great!
I can’t read English.
Taxing e-mail is being (or has been) considered...
LaborUnionReport (Diary) Saturday, December 25th at 8:18PM EST (link)This is from the NYT, over a year ago:
http://ideas.blogs.nytimes.com/2009/05/26/the-case-for-taxing-e-mail/
From PC World way back in 2003:
http://www.pcworld.com/article/110837/will_taxing_email_stop_spam.html
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