Senate Considers Restructuring Postal Service with Losses and Soaring Debt

There is a proposal for the postage to increase again, beginning January 26, 2014. This raises the continuing debate over how to overhaul the USPS so that it can become and remain profitable. If adopted, the cost of a first class stamp will go from 46 cents to 49 cents.The proposed legislation has several steps, including that it would modify the health benefits and pension of postal workers as well as to discontinue service on Saturdays.

Although internet email and other means of online communication have grown enormously, everyone is aware that first class mail has decreased at the same time. Those who are optimistic that the Postal Service will eventually become profitable, among other things, point to the continuing surge in the Postal Service’s delivery of packages as e-commece has escalated. On the other hand, there are many who compare Fed Ex and UPS as examples of how private enterprise should be the model for the Postal Service and not rely upon taxpayers to offset its mounting debt. Some individuals believe revenue from advertising by the USPS, such as on the side and back of the postal trucks, would help increase revenue as in the case of municipal buses.




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