Post Office Crisis

[Towntalk]

Postmaster Donahoe to beg Congress for Postal Service's life

http://www.washingtonpost.com/politics/postmaster-donahoe-to-beg-congress-for-postal-services-life/2011/09/04/gIQASiWs4J_story.html

[Towntalk]

We assume that because we have computers and rely on email and electronic transactions that everyone is in the same position, yet the fact of the matter is that this is not the case, and thousands of households in America still rely on snail mail, so if this is the case, and if the post office does shut down as predicted:  "If we do nothing, if we don't react in a smart, appropriate way, the postal service could literally close later this year." there is going to be a major problem economically both for government and private businesses. How will governmental agencies such as local water departments be able to bill customers, how will local, state and federal tax agencies receive income tax filings, how will governmental agencies communicate with their clients, how will businesses that do not use electronic billing receive payments for their services.

Under existing law, private mailing companies such as Federal Express and UPS can not deal with First Class Mail, nor are they equipped to do so right now so unless and until they are there will be a major problem that will be faced both in the public and private sectors.

I do 95% of my business electronically ... yet each month I receive four pieces of snail mail billings that can not be sent to me via email, and for others the number of billings they get is higher, so what happens for them?

In reading articles about this crisis, we're told that Congress is so divided that they can't even come to an agreement on the most simple of matters, so there is every likelyhood that it won't be any different in the case of the Postal Service until the crisis reaches the point where the service has to shut down.

Both parties are to blame for the mess the federal government is in, and the fact that we're heading into the 2012 Presidential election season isn't helping matters.

Given the way Congress acts can it come up with a workable solution before the end of the year? I doubt it.

[our2cents]

If they cut home service days to 2-3 days a week (depending on mail load on the individual route), yet kept business delivery normal, we would see a huge profit margin return.  Then they would remain totally viable and not have an effect on the economy as traditional mail would still exist.  And more people that have never done it before, could potentially begin to use online delivery of their bills, etc.  They also have an excellent package delivery system in place.  It's cheap and easy to send a presized box with USPS.  I've sent things with them that UPS and FedEx wanted to charge an arm and a leg to do.

As for them cutting employees, Look in the local post office now...they've already taken early retirement and cut the days and # there.  Delivery drivers are in the same situation...

[Rick Rowlands]

Fed Ex and UPS are looking at this as an amazing growth opportunity.

[Towntalk]

The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.

"The situation is dire," said Thomas R. Carper, the Delaware Democrat who is chairman of the Senate subcommittee that oversees the postal service. "If we do nothing, if we don't react in a smart, appropriate way, the postal service could literally close later this year. That's not the kind of development we need to inject into a weak, uneven economic recovery."