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The Life or Death of a United States Institution
Liteblueeblog Liteblueeblog Apr 17, 2019 09:54PM
 

How often do you go to the mailbox and there was no delivery that day? Just imagine not receiving mail on Saturday, will a 5-day delivery impact your life? The United States Postal Service is in danger of losing its 6-day delivery. Ending Saturday delivery would restore some financial stability and would save the Postal Service 2 billion dollars a year. The Postal Service receives no tax dollars for operating expenses. It relies on sales of postage, products, and services to fund its operations (According to the USPS website). Package delivery is showing a significant increase, however it has to compete with UPS and FedEx for this share of the market. Saturday delivery is just the icing on the cake. The definition of a liability states that a company is legally bound to pay a debt. The future retiree health care benefit liability is one of the succeeding forces that is making the Postal Service go on a downward spiral.


First, lets look into the past to get an understanding of the current issue. The Postal Service was doing very well financially in 2006 mail volume was at an all time high, 213 billion pieces. In 2006 the Postal Accountability and Enhancement Act was created by Congress to set in place installment payments to make sure that future retiree health care benefits would be paid for next 75 years. No other business in that sector has been required to make that type of payment.


There are also other factors Liteblue Login pushing the Post Office into the ground, decline in mail volume and economical changes caused by the electronic age, mainly the Internet. The mail volume in 2011 was at 168.8 billion pieces compared to 2006 with 213 billion pieces. That’s is a whopping 44.2 billion drop with a projected decline to 150 billion pieces of mail by 2020. That’s why there is much debate between the Congress and the Postal service to push no Saturday delivery. The decline in mail volume and economic forces has forever changed the Postal Service.


 




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