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U.S. Postal Service: RIP

Posted Jun 15 2009, 06:05 AM by Douglas McIntyre
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The U.S. Postal Service, which has been dying for years due to the advent of the fax, e-mail, and overnight delivery, may finally be close to its last act.

The agency lost nearly $2 billion in its last fiscal year and is faced with the serious consideration of cuts of up to 3,100 offices, potentially eliminating thousand of jobs. Media reports say that first class mail volumes are plunging.

What is killing and will probably eventually finish off the Post Office? In a word: “broadband,” the high-speed Internet system that the current Administration plans to build out in the next two years.

According to MarketWatch, the Postal Service is already looking at stopping Saturday delivery. The next moves will probably cut the number of weekdays the mail is dropped off, particularly outside urban areas where the cost of reaching homes and businesses spread over a wide geography is enormous.

Broadband has taken away the need for sending letters and may large documents. Broadband connections allow users to securely download encrypted files, some of which are the equivalent of thousands of pages of paper. The files can be sent and received in a few seconds compared with days to move them by mail.

Payment systems which wire transfer money have nearly eliminated the role of the check in paying bills. This will only increase as e-banking does.

Even the magazine and newspaper industries which relied on physical delivery systems for decades now use the Amazon (AMZN) Kindle as a way to get the printed word over the Internet and downloaded onto the device. Almost every major print product also has an Internet version. Sending magazines via mail is expensive. Cutting back on that form of delivery would be a blessing.

The modern postal system killed the pony express. The USPS could only last so long before it was itself replaced. That time has finally come.

Top Stocks blogger Douglas A. McIntyre is an editor at 24/7 Wall St.

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Comments

 

I agree with Scottturbo.  Stamp prices are getting outrageous.  A 2 cent increase!  For every 100 items I mail, that is an additional $2.00 I have to pay!  Who can afford such a burdensome expense!

I just love all the idiots who complain about a 2 cent stamp increase.  It must be so tiresome to live a life where such a small thing gives you a reason to complain.  Its two cents.  If you don't like it, use online bill pay.  But for everyone's sake, save your crying and complaining for something that actually matters.

Alot of the feedback on the USPS seems to be comming from people that think they know what they are talking about. I have done alot of e-commerce with different companies and shipping USPS has always been alot less expensive than UPS or FEDEX, furthermore, they ship alot faster with their ground shipping than their competition does for a lesser price as well. I hate to think that there are people out there that wish for the demise of the USPS and the service they provide.

As a USPS employee for 15 years, (now a successful stay at home business owner) I am not surprised and even welcome the end of the postal service. I have seen it all! sexual harrassment on a daily basis, supervisors and managers showing up for +/- an hour a day, then leaving to use the huge bank of personal hours allotted to them every month, employees sleeping behind boxes or in the bathroom ervery night, several making hourley trips to their vehicles to "get a drink" then running machinery and driving fork lifts throughout the building, fistfights with supervisors and employees, and on and on. Many employees would sabatoge a flat sorting or letter machine just to get a break or to get out of doing the rest of their work and leave it for the next shift. And God forbid that a supervisor or manager should bend over to pick up a piece of mail off the floor because then everyone (about 8-10 people) had the right to go sit in the Union Stewards office and file a greivance that the manager or supervisor was doing "their" job. Hours of productivity lost....I think they should just privitize the Postal Service and make customer service a priority like it used to be. every package my husband and I send is either UPS or Fed-Ex.

The U.S. Postal Service does not receive any tax moneys from the Government. That stop when it was reorganized in 1972. The price of Stamps went up 2 cents in a years time. Lets see the price of Gas went up 37 cents in the last month. Postal workers are hard working people who deserve what they get paid. Try putting up the customers at a Retail Counter for one day or go out in 90 degree heat and walk 15 miles delivering the mail and then you might feel a little different. Five day delivery would be a good thing and save a bunch of money. Sooner or later (hopefully sooner) that will happen.

To move our society and the world ahead, some of our old dogs must die, the USPS is one of them.

I don't think so, do you have any idea how much junk mail is sent out every year.  I work for a very small company and its much cheaper to send out mail then anything else, at least it will get to the door,  most email won't

I think people forget that  USPS is the only Federal Agency pay its emplyees with the money from selling stamps and its services .. USPS not get a  single cent from tax money ... So I hope only way to save USPS is  get tax money bail out because money still go to the good cause than use them to bail out the banks because they use bail out money to pay for top people bonus

The USPS doesn't get it.  They keep raising rates because of declining volume which only makes alternatives even MORE attractive.  They are slowly killing themselves.  And don't get me started on the lousy customer service and bureaucratic policies.

Yet, these are the same people who want to run a multi-billion dollar healthcare system.  Now, THAT'S truly frightening.

The post master in my small town earns alittle over $150,000 which is overkill for his small performance.

Bob,

Privatize something that if it was profitable would have already have competitors?  If we sell the post office, prices will go up further to generate return for shareholders and they would eliminate service to where it doesn't make sense (rural areas).  Does that sound like something that people would like and afford in rural communities?  It is time to realize when the role of government to provide services, ceases to exist, you retire that organization gracefully.  I applaud the cuts in service, it is the first good idea I have heard come out of the post office in years.  I am sick of the post office trying to compete in email, internet service, and other places they will never be able to compete, because there are already good private companies offering these services.  Why is the government trying to compete where there is not a hole or need that exist?  Oh yeah, they need to waste our money and save their job.  Congress needs to make them really do their job, keep costs down and preserve Americans tax money where it is really needed.

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