US Postal Service will be broke by Oct

[JEDI]

http://www.cnn.com/2011/US/03/02/postal.service.hearing/index.html?hpt=T1#

"We will not need a bailout," Donahoe said. But the $5.5 billion payment is the principal reason for the Postal Service not breaking even this year, he said. He is expecting a $6.4 billion loss this year.


um.. what? we dont need a bailout but will have $6.5B loss this year?!

Solution:
why not just declare bankrupcy and dump the Prefunded retiree medical benefits of $5.5 billion a year???

 

[sportage]

It’s all about technology.
Emails, facebook, im, electronic payments, etc etc.
Even my family now just facebook’s a happy birthday to family/friends,
instead of a actual card. And emails a gift card for Amazon or Wal-Mart.
Also posts the family Christmas card photo, in front of the tree,
on facebook. No hard copy in the mail.
Then you have facebook calendar for events, news, parties, reunions.

If the PO invented facebook they'd be ok.
But face it, snail mail is gone forever. Same with the rotary dial phone.
And soon, the landline phone.

So the demise of the PO, or some massive scale down, was inevitable.
They are old world and never had the foresight to evolve into the
new world of technology. Same with the phone companies, would suffered the
same demise except they entered the world of wireless, and made packs with
satellite television, not to mention Apple, to remain in the game.

The US post office never seen it coming, or had the options to prepare.
Like the death of the dinosaurs, this will be inevitable.
The great asteroid has already hit their world. Technology.
The post office will be reduced to a basic package handling outlet, with
no daily delivery. No mailman walking or riding the route.
And still, the PO will probably will have a hard time holding their own against UPS and FEDEX as basic package handlers.
I wouldn’t be surprised if some private company offered to buy them out
from the US government, and run as a private business.
Might just be the solution.
Or... they could raise the cost of a first class stamp to $5 and squeak by for another two or three years in the black...maybe.

 

[Vette73]

So people should pay their CC's, mortgages, etc... but if a business can’t meet its obligations it should just say tuff; suck it?

Instead how about fixing it the right way. The reason they are in trouble is they are required to operate under Gov rules but not get any tax money. As such they cannot raise the price of postage or cut service as most business would do, and they admit is needed, as their hands are tied to Gov rules/regs.

Easy fix allow them to raise postage to what it should be and cut 1 day from service.

 

[Vette73]

It’s all about technology.
Emails, facebook, im, electronic payments, etc etc.
Even my family now just facebook’s a happy birthday to family/friends,
instead of a actual card. And emails a gift card for Amazon or Wal-Mart.
Also posts the family Christmas card photo, in front of the tree,
on facebook. No hard copy in the mail.
Then you have facebook calendar for events, news, parties, reunions.

If the PO invented facebook they'd be ok.
But face it, snail mail is gone forever. Same with the rotary dial phone.
And soon, the landline phone.

So the demise of the PO, or some massive scale down, was inevitable.
They are old world and never had the foresight to evolve into the
new world of technology. Same with the phone companies, would suffered the
same demise except they entered the world of wireless, and made packs with
satellite television, not to mention Apple, to remain in the game.

The US post office never seen it coming, or had the options to prepare.
Like the death of the dinosaurs, this will be inevitable.
The great asteroid has already hit their world. Technology.
The post office will be reduced to a basic package handling outlet, with
no daily delivery. No mailman walking or riding the route.
And still, the PO will probably will have a hard time holding their own against UPS and FEDEX as basic package handlers.
I wouldn’t be surprised if some private company offered to buy them out
from the US government, and run as a private business.
Might just be the solution.
Or... they could raise the cost of a first class stamp to $5 and squeak by for another two or three years in the black...maybe.

I disagree on the first part, they did see it coming and TRIED to makes changes. The problem is they do not have the options as their hands are tied. Postage is tied to the gov inflation rate but that rate is very generic and values things that have little affect to the PO and under values things like gas that affect the PO more.

Cutting a day, closing some PO stores, and raising first class to $.50 could get them near or maybe back to profit. But they can't do any of them without Fed Gov permission.

 

[boomerang]

The country is broke too along with many states as well as many of the residents.

It's a national trend.

The PO will be kept on life support through whatever means are available until, oh...I predict after the elections in November of 2012.

 

[Zebo]

Everything is going broke, y'all just don't know it yet.

 

[matt0611]

We should just let them set prices freely and let UPS and FedEx deliver mail also.

 

[Zebo]

We should just allow UPS and FedEx to start delivering mail.

That won't help because they will go broke too. Essentially everything in our economy is now driven by a massive PUBLIC deficit. The last time we did this was in WW2....but that deficit was driven by loans from PRIVATE individuals in the form of war bonds. This time Americans can't afford war bonds so the gov't prints or borrows money, both which will destroy us.

 

[dfuze]

Their amounts of mail has decreased steadily with the popularity of new technology, I think it only does make sense they do what a regular business would do and cut back on their hours of operation like dropping a day or two. 90% of my mail received is junk mail, if it took an extra day to arrive it will still find its way into the recyle bin.

 

[Vette73]

Their amounts of mail has decreased steadily with the popularity of new technology, I think it only does make sense they do what a regular business would do and cut back on their hours of operation like dropping a day or two. 90% of my mail received is junk mail, if it took an extra day to arrive it will still find its way into the recyle bin.

Problem is they admitted that a while back but can;t do it. They are begging congress right now just to go to 5 days a week. But have been turned down so far.

 

[Zebo]

I recycle a damn tree every two weeks from all the trash I get sent. really the PO needs to go period with environmental destruction they are dependent upon to get paid.. Only thing they are still good for is registered letters and couriers could do that.

We invented the digital age, lets use it for something besides porn. One area we probably need more FTF contact.

And that includes using digital age for teaching

http://forums.anandtech.com/showthread.php?t=2138657&highlight=online

 

[dfuze]

Problem is they admitted that a while back but can;t do it. They are begging congress right now just to go to 5 days a week. But have been turned down so far.

No idea why congress wouldn't logically allow it, it's not like anyone gets mail 6 days a week that can't wait a day, and if someone needs to send something next day their are other options available.

 

[Vette73]

No idea why congress wouldn't logically allow it, it's not like anyone gets mail 6 days a week that can't wait a day, and if someone needs to send something next day their are other options available.

Probable old people complaining or the trash mailers that want to keep their cheap mailings going at cost of the Gov.


I would be happy if they hauled mail only 3 days a week (M-W-F). That with the raise to $.50 would be hugh.

 

[Exterous]

Problem is they admitted that a while back but can;t do it. They are begging congress right now just to go to 5 days a week. But have been turned down so far.

Wasn't an increase in postage price also turned down by Congress?

 

[Vette73]

Wasn't an increase in postage price also turned down by Congress?

Not by congress but some panel that handles that.

The problem is the panel can't let them raise prices as they use an inflation rate by the fed gov that looks at food and other things that matter little to the PO and downplay fuel cost as most people spend more on food than gas.

So the PO is screwed as they don't get tax money but have to run as they they do. UPS and Fed-Ex make money as they set their rates and when the haul based on demand. The PO can;t even think of doing any of that. The current person running the PO is doing the best he can and has cut billions in cost from the PO and worked with the union. But he can only do so much with what he is allowed to do.

 

[Thump553]

sportage is correct to a large extent-changes in technology have gutted demand for the post office's services. I've paid all my bills online for a decade now, most correspondence with clients by email-heck even in the stodgy court systems most pleadings are electronically filed now.

Going to five day service and jacking up the ridiculously low bulk mail rates would be excellent steps. I'm not going to cry too much if I only get one LL Bean catalogs a week instead of daily.

But inevitably the postal service is going to shrink drastically.

 

[Bl0cks]

I blame the click-n-ship system. It's so easy to skimp on shipping, and the employees don't care enough to reject it for "not enough postage." I am not talking about flat rate boxes.

 

[CycloWizard]

So people should pay their CC's, mortgages, etc... but if a business can’t meet its obligations it should just say tuff; suck it?

Instead how about fixing it the right way. The reason they are in trouble is they are required to operate under Gov rules but not get any tax money. As such they cannot raise the price of postage or cut service as most business would do, and they admit is needed, as their hands are tied to Gov rules/regs.

Easy fix allow them to raise postage to what it should be and cut 1 day from service.

They can't make those changes because they can't fire/lay off anyone. They have a massive work force with an insanely powerful union that controls everything. Nothing gets done without the union allowing it, and why would it allow its members to get canned en masse? Still, it's good to see you admit that government is the problem for once.

 

[Vette73]

They can't make those changes because they can't fire/lay off anyone. They have a massive work force with an insanely powerful union that controls everything. Nothing gets done without the union allowing it, and why would it allow its members to get canned en masse? Still, it's good to see you admit that government is the problem for once.

To bad facts show the union has little power and the PO has many thousand fewwer people now then just a few years ago.

But hey why let facts and your faux outrage get in the way.

 

[CycloWizard]

To bad facts show the union has little power and the PO has many thousand fewwer people now then just a few years ago.

But hey why let facts and your faux outrage get in the way.

Can you show me these facts? I'd love to see them.

 

[Vette73]

Can you show me these facts? I'd love to see them.

It was in the OPs link I am guessing you did not even open...

"Despite cutting 230,000 positions in recent years"

Damm union not letting them cut any jobs... oh wait.

 

[BoberFett]

Everything has been broke for a long time, y'all just don't know it yet.

Fixed that for you.

 

[OutHouse]

ive often wondered what would happen if the USPS raised stamps to a even buck. they would be in the black for sure but how long will that last? a year, 2, 3 and then be back in the red.

 

[Slick5150]

The real problem of the postal service has been alluded to here, but it's specifically that they're required to service EVERYONE, even if you're some guy living out in the middle of absolute nowhere, for the same price. Their profitability (or, breaking even anyway) is fine in urban/suburban areas, but servicing rural areas costs them a fortune.

If you send something to someone via FedEx or UPS that lives in BFE, they charge you extra for it (I think FedEx calls it a "Delivery Area Surcharge"). USPS isn't allowed to do that, and with gas prices as high as they are, the cost of serving those areas is just killing them.

People in rural areas need to either be willing to pay extra for USPS's services, or declare they don't want delivery and agree to pick up their mail at a post office.

 

[Vette73]

ive often wondered what would happen if the USPS raised stamps to a even buck. they would be in the black for sure but how long will that last? a year, 2, 3 and then be back in the red.

If they could cut certain service they could be in the black forever. Problem is as of now they HAVE to haul mail to EVERYBODY in the US 6 days a week.

I think going to .50 and 3 days haul would help right away and would not be much a issue.