Posted on 07/07/2010 12:24:48 PM PDT by sickoflibs
WASHINGTON (AP) — Buy those Forever stamps now. The cost of mailing a letter is going up again.
Fighting to survive a deepening financial crisis, the Postal Service said Tuesday it wants to increase the price of first-class stamps by 2 cents — to 46 cents — starting in January. Other postage costs would rise as well.
The agency's persisting problem: ever-declining mail volume as people and businesses shift to the Internet and the declining economy reduces advertising mail.
The Postal Service faces a serious risk of financial insolvency," postal vice president Stephen M. Kearney said, an indication that without significant changes a time could come when the agency would be unable to pay its bills.
The post office lost $3.8 billion last year, despite cutting 40,000 full-time positions and making other reductions, and Kearney said it is facing a $7 billion loss for this year and the same for fiscal 2011, which begins in October. The rate increase would bring in $2.5 billion, meaning there still would be a large loss for next year.
The post office, though part of the government, does not receive a tax subsidy for its operations.
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After going more than three years without an increase, the post office has raised stamp prices annually since 2006.
(Excerpt) Read more at baltimoresun.com ...
I’d love a breakout of how much of the operating loss is compared to how much the US Postal Service pays in benefits to employees and retirees.
It’s only a matter of time.
How can they be losing money and not get tax dollar subsidies? It makes no sense.
Raise prices on a product or service for which there is declining demand. Real smart.
“their employees cannot read addresses for proper delivery.”
Is that because the employees are illiterate, or do the senders write like slobs?
Just wait until healthcare comes into full effect.
I’d love a breakout of how much of the operating loss is compared to how much the US Postal Service pays in benefits to employees and retirees.
That was my thought, as well. They probably get some 100% of health care paid forever for the employee and spouse, retire at age 50 with full salary, type of plan. I am also curious as to how the actual labor is distributed and whether they have 30% of the staff sitting around at all times, because those people are prohibited from some element of the mail handling/processing.
Raise prices because people stop using your service because you raised prices.
Smart.
The more they raise it, the more the volume will drop. Top Line is going to shrink further.
we’re bankrupt and yet can’t get rid of PBS , NASA ,AMTRAK, or the USPS...sad.
Time to go purchase another $200 of the forever stamps.
“This is a good example of a government run enterprise.
How can they be losing money and not get tax dollar subsidies? It makes no sense.”
How?? because the place is filled with minorities that are owed and run by Imbeciles!
Like a whole lot of govt. crap,
The postal service should end.
Let the private sector do it. Cheapr, faster, better.
Baraq needs to merge GM, Chrysler, Fannie Mae, and Freddie Mac into the Post Office.
There are numerous postal workers in my church. They have a ton of people who’ve been there a very long time. They work themselves into a cush job and stay there.
Congress and the Office of Personnel Management dictates to them the terms and conditions of their pension plan, and has been forcing them to overfund their pension and health systems to the tune of $75 billion over the past 20-30 years.
I don’t mail six letters a year and rarely go to the post office.....they could close it as far as I’m concerned. I don’t know where I would get my junk mail from!!!!
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