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The U.S. Postal Service has requested yet another price hike, but Daniel Gross says higher...
Thursday, July 8, 2010, 6:15 PM ET
The U.S. Postal Service has
requested yet another price hike
, but Daniel Gross says higher postage rates are actually
good for the economy
, businesses and consumers. Has he gone postal?
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Good thing they decided to cap rate hikes of postage stamps to inflation, eh? That seems to be working out well. Betcha wish you had bought a couple hundred more of the Forever Stamps when they were a paltry $0.41...
8 Jul 2010, 06:36 PM
The US postal service needs to contract big-time. I would like to know who pays what per pound. It seems to me that those few folks who actually lick a stamp and mail a letter subsidize a great deal of wasted paper that goes from a printer into the dumpster, aka bulk mailers. Seriously. It would be like paying a gas tax to subsidize horse riding. It has way outlived its purpose and needs to be rebuilt from the ground up. Pay bills on line. email correspondence. View catalogs online. The US postal service should be under heavy fire from the likes of Sierra Club for destroying acres of forests just to benefit a few retailers. It is insane. If you want a catalog, pay the postage. It likely would be so much that you would pass. Arguing that it destroys jobs is lame. Nobody cared about the massive jobs that the internet destroyed, or PCs (draftsman anyone?). It is darwinian. Let it go. okay. I feel better.
8 Jul 2010, 06:39 PM
The post office provides a service and we the taxpayers shouldn't subsidize it. Whatever it costs it costs. I don't see mail as being essential to a person's life the same way it was 20 or 30 years ago.
The only segment of the population that I think really 'needs' mail is the elderly. But why not allow the post office to sell discounted stamps to the elderly - after all there are all kinds of senior discounts in the world. Then charge a rate that will ensure the taxpayers don't contribute a dime.
8 Jul 2010, 07:11 PM
My comment below meant to say that the USPS is mandated to be a universal service.
The remote and rural areas services are evidently subsidized. The postman has to drive miles between mailboxes to making deliveries in some instances.
Providing a universal postal service to all citizens is a de facto 'Price to Pay for Nationhood'. As otherwise the folks living in remote and rural areas having to pay a tiered rate would 'suffer' so to speak.
10 Jul 2010, 12:56 PM
Only of late that the USPS is gradually realizing that it has to change to survive. True, providing a world class and most reliable postal service of ALL US citizens is part of its mandate. So a 44-cent first class stamp would get your letter from Florida to Wyoming, being distance blind. In a way there is a truly hidden subsidy here. Fine.
However, the USPS has inherited the mind-set of a civil service mentality. Their hours are 830 to 430 in most locations which coincide with most working class Americans. If you are not in a high pressure service job, you could get away for half an hour or so to go to a nearest office to look after your parcel or other special mailings. In other words, they don't really exactly care to CATER to YOU. YOU have to adjust to them!
Providing passport application and renewal service is a good idea. It used to that YOU have to come up with the correct passport photo that meets THEIR requiemens. How inconvenient. Of late they realize they have to make life easier for their customers and provide photo taking right on the same spot. Well, I wish they have had implemented this a lot sooner.
By and large, I could attest that the United States has the best postal service in the world!
8 Jul 2010, 07:19 PM
80% of the costs of the postal service come from salaries and benefits. Compare that to UPS and FDX which are both less than 48% (or so). Want to make things cheaper? Get rid of unions.
8 Jul 2010, 07:24 PM
UPS has unions. The problem with USPS is Federal employees.
8 Jul 2010, 11:14 PM
8 Jul 2010, 08:54 PM
In Holland we used to have a sticker with 'NO-NO' and one with 'NO-YES'
The first NO was for unsolicited mail (which would be somewhat useless in the US since I get my 5 credit card offers mailed first class to me, all personally addressed)
The second NO was for local magazines and newspapers.
It worked quite well!
On most days I can directly deposit all the 'mail' in the recycle bin.
Very wasteful... I've learned that the US is all about waste: so much talk about being energy independent and drilling locally, so little talk of actually using less energy... keeps the world moving though...
8 Jul 2010, 11:58 PM
Raise interest rates: watch prices come down.
9 Jul 2010, 02:02 AM
Another example of the Keynesian method of.." how to make a business successful ", defies logic, (other than with a hope and a prayer).
9 Jul 2010, 06:40 AM
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