What Next for the Postal Service in 2011?

On September 30th, the Postal Regulatory Commission (PRC) turned down the request by the Postal Service for an exigent price increase averaging 5.6 percent across all market-dominant products, such as First-Class Mail and Periodicals. Although current law cape increases in these products to the inflation rate, the PRC can consider rate increases beyond the cap if the Postal Service has been affected by “extraordinary or exceptional circumstances.”

 

A Lower Volume Postal Service?

The U.S. Postal Service is used to delivering large amounts of mail. Last year, it delivered more than 177 billion pieces. More mail pieces are sent per person in the United States than almost anywhere else in the world. But mail volume has been declining. How will the Postal Service change if volumes continue to fall? Is the Postal Service even financially sustainable at lower volume levels?

The Office of Inspector General (OIG) asked the George Mason University School of Public Policy (GMU) to find out. The results of GMU’s work appear in a paper released today on our website.

 

Congress Faces a Decision

Last month the Economic Policy Institute, an independent Washington think tank, issued a study (Congressional Mandates Account for Most of Postal Service’s Recent Losses) analyzing the Postal Service’s operating losses over the past three years. It should be noted that while the Institute is nonpartisan, the National Association of Letter Carriers provided support for the research.

 

Pages

Recent Poll

Number of packages you returned or plan to return post-holidays:

Recent Comments

  • 16 hours 28 min ago
    You don't read comments. You don't follow up on reports properly. You have no honor as an organization. Combat veteran can't access his mail. USPS personnel continually lie to law...
  • 16 hours 55 min ago
    after a recent visit to my post office, I tried to to use the QR code printed on the receipt to leave a comment about the good service always provided by one particular clerk. It didn't work...

Monthly Archive