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.

 

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Recent Comments

  • 8 hours 50 min ago
    Need smaller routes on Sunday 4 hours routes would be better. Having to wait for all manifests kills productivity Static delivery is 120% better than Dynamic. Yet we can’t get the boss to set up...
  • 11 hours 28 min ago
    Our office uses ptf clerks and carriers on Sundays. There are no PSE or CCA employees here. Its not cost effective in rural towns. Sundays should only be done in high level city offices, not...

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