• on Jul 13th, 2009 in Ideas Worth Exploring | 527 comments
    Wednesday Update:

    Wow. Thanks for the fabulous response to the brainstorm. We’ve been overwhelmed by the sheer number of thoughtful responses. To give everyone enough time to comment and us a little time to read through everything, we’ve decided to extend the period for taking comments and post a blog about the brainstorm with the poll on Monday. Until then, please keep sharing your ideas. All suggestions received by Friday morning will be candidates for the poll. Oh, a word about moderation, we moderate every comment, and our policy is not to include comments that include vulgar words (even if the words are partially obscured with other characters) or involve name calling. We have not been able to approve a few comments that were otherwise very interesting because they violated our comment policy, so please double check your comment before you submit it. Thanks again!

    Original Post:

    The Postal Service is facing a financial crisis and needs to pursue every option it can to improve its net income. Pushing the Envelope thought it might be a good idea to ask for your thoughts. How do you think the Postal Service can save money or raise additional revenue? To make this a bit more interesting, the blog team will review your ideas and pick the most popular or most interesting for a poll. We’ll post the poll on Wednesday. So brainstorm now, and be sure to come back on Wednesday to view the shortlist and to vote for your favorites. Share your ideas in the comments below. Describe the idea, whether it involves cutting costs or generating revenue, and how much you think it could add to the Postal Service’s bottom line. Happy brainstorming! This topic is hosted by the OIG's Risk Analysis Research Center (RARC).

  • on May 4th, 2009 in Ideas Worth Exploring | 26 comments
    Imagine an economic collapse in which millions of people lose half of their life savings and their trust in the country’s largest financial institutions is severely shaken. To help restore trust in the financial sector, the government creates a savings system operated by its postal administration. Sound unrealistic? Maybe so, until you remember that the U.S. Post Office Department offered a government-backed savings system to Americans for more than half the twentieth century.

    Searching for ways to raise revenue for a postal telegraph network and inspired by Great Britain’s postal savings system, Postmaster General John A.J. Creswell first recommended a postal savings bank for the United States in 1871. But it wasn’t until the Panic of 1907, which shook the public’s trust in private banks, that the concept really gathered widespread support. Finally, in 1910, the Congress passed the Postal Savings Act that authorized the Post Office Department “to establish postal savings depositories for depositing savings at interest with the security of the Government for repayment thereof, and for other purposes.”

    The creation of the postal savings system was intended to get money out of hiding and to provide safe depositories for people who had lost confidence in banks. It was also intended to provide a convenient means of saving for individuals throughout rural America.

    Initially, depositors in the system were limited to a balance of $500, but this was raised to $1,000 in 1916 and to $2,500 in 1918. The system paid depositors 2 percent annual interest. During the first two decades, the system had a natural advantage over private financial institutions, because the deposits were always backed by “the full faith and credit of the United States Government.” Even so, deposits were slow at first, but by 1929, $153 million was on deposit. Because of the bank failures during the Great Depression, the amount jumped to $1.2 billion in 1934, which was one-third the amount of the entire savings and loan industry. The system continued to flourish through World War II, but by 1948, proven banking reforms and higher interest rates caused a downward trend for the postal savings system. Congress abolished it in 1966 and the Post Office Department stopped accepting deposits on April 27th of that year.

    In a column for the New York Times this past October, Michael Lind proposed that a new postal savings system be created. Lind argued that “the current structure of public and private finance chronically fails to address four problems: the almost 10 percent of Americans without a bank account; the concerns of all Americans about the security of their savings, the growing indebtedness of the country to foreign governments and financial institutions, and underinvestment in public assets like sewer systems and bridges.” In his view, a postal savings bank would address these issues.

    Opponents of this idea argue there are plenty of private institutions that offer banking services, even in rural areas of the country, and that the Postal Service should concentrate their efforts on collecting, processing, and delivering the nation’s mail. They also argue that since the banking reforms created during the Great Depression (the FDIC is a prime example), there is no reason why the American people should ever feel their savings are not secure. After all, if the U.S. Government could not guarantee people’s savings through the FDIC, why would their money be any more secure in a postal savings system? The United States and Great Britain are not the only nations that have experience in combining postal services and banking. In more than 40 countries, posts provide some type of banking services (for example, China, Italy, Japan, Israel, Austria, Brazil, and India). In fact, during the current downturn, revenue from financial services has helped sustain some posts. The U.S. Postal Service, however, could not start offing savings services unilaterally. A change in current law would be required.

    What do you think about a new postal savings system? Do you believe such a system is needed? If so, what are the major benefits you foresee? If not, why not?

    This blog topic is hosted by the OIG's Risk Analysis Research Center (RARC).

  • on Feb 17th, 2009 in Ideas Worth Exploring | 22 comments
    The Postal Service requires full addresses on most mail, but this creates unnecessary complications for small local businesses such as pizza parlors and dry cleaners that simply want to send a flyer to every address in the surrounding area. It would be much easier for them to bring a stack of unaddressed mail pieces to the Postal Service and let the Postal Service deliver one to each address.

    The Postal Service previously worked on a concept called Neighborhood Mail to meet this need. Using Neighborhood Mail, a business could send unaddressed mail to potential customers in the community it serves. The Postal Service would tell the business how many pieces were necessary to cover the delivery area and charge it for delivery. Such a service is not unusual. Many postal services in other countries offer unaddressed mail service.

    Neighborhood Mail, however, has its opponents. Newspapers, which compete with mail for local advertising, opposed the development of the Neighborhood Mail concept in the past. Neighborhood Mail would also compete with mail consolidators and alternate delivery providers which currently help small businesses deliver information to the community. In addition, unaddressed mail could raise environmental concerns, so the Postal Service might want to offer households the ability to opt out of receiving Neighborhood Mail.

    What do you think about Neighborhood Mail? Are there other services the Postal Service could introduce to help local communities?

Pages

This site provides a forum to discuss different aspects of the United States Postal Service and how it can be improved. We encourage you to share your comments, ideas, and concerns.

This is a moderated site—we will review all comments before posting them. We expect that participants will treat each other with respect. We will not post comments that contain vulgar language, personal attacks of any kind, or offensive terms that target specific individuals or groups. We will not post comments that are clearly off-topic or that promote services or products. Comments that make unsupported accusations will also not be posted.

We ask that reporters send questions to the USPS OIG Media Office through their normal channels and refrain from submitting questions here as comments. We will not post questions from reporters.

We recognize that the Web is a 24/7 medium, and your comments are welcome at any time. Given the need to manage Federal resources effectively, however, we will review comments and post them from 9:00 a.m—5:00 p.m Eastern Time, Monday through Friday. We will read and post comments submitted after hours, on weekends, or on holidays as early as possible the next business day.

To protect your own privacy, and the privacy of others, please do not include personal information or personally identifiable information such as names, addresses, phone numbers or e-mail addresses in the body of your comment.

Except when specifically noted, any views or opinions expressed on this forum (or any other forums available via an RSS feed) are those of the individual bloggers. The views and posted comments do not necessarily reflect those of the U.S. Postal Service Office of Inspector General, or the Federal government.

Thank you for taking the time to read this comment policy and disclaimer. We plan to blog weekly on as many emerging new media topics as possible. We encourage your participation in our discussion and look forward to an active exchange of ideas.