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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

 

So far, I'm 36 y.o and have been using the USPS for a relatively long time.  (15-20 years)  I have mailed countless bills, cards, and other things and have only had maybe one or two things that I had to send again.  Considering the sheer volume of mail they send, it's a very accurate service.  Now if we could just get the junk mail to stop.....but that's probably where the USPS gets most of its revenue.  Long live the USPS.

I've worked for the usps for 12 years...I truly appreciate the compliments and am truly ashamed of the criticisms.  There is truth to nearly every comment.  I wish as a company we were managed better, I wish some employees were more polite, I wish people could see how hard most of us work to get your mail delivered.  When I go to work tonight ( I work nights processing mail), I'm going to urge my supervisors to log on and read all your comments, suggestions, compliments, and complaints.  I am also going to urge my supervisors to have their superiors do the same.  Postal management needs to be reminded of their commitment to service and fiscal responsibility.  Many American companies, including the USPS, are getting complacent and need to be reminded of this fact.

As a USPS clerk (not window) I have NEVER seen a company more mis-managed than this. Our local plant manager is trying to run us into the ground. He is a complete moron. We "go postal" because of the supervisors, not the job. They have absolutely NO people skills. The supervisors are the ones who were the worst employees when they were on the floor. Everyone is overworked because of call-ins. They have a "blanket" disciplinary system. They don't look at each individual case so they make it to where you have to call-in if you need a day off. Well, we can take up to three days with one call-in to count as one occurrance. Of course everyone is going to take their 3 days. I love my job just not management.

The article ignores the huge industry of marketing by direct mail.  First class mail volumes have been dropping for years but direct mail has been increasing for years until we hit this recession.  The USPS needs to concentrate on their best customer, the direct mail industry, in order to get back into the black!

The Postal Service could save a lot of money by getting rid of the pensions they are paying into and replace them with 401k s matching a max of 4% just like most of the people in this country have to deal with for retirement.  There should not be any free ride for retirement. Our government as a whole should adopt this.

It was the telegraph that killed the Pony Express and not the USPS.

The postal service runs cheaper than any other country in the world, they run only on the sell of stamps, they are the only govt entity that ran this way, If blame is to be set it should be put on the vendors who charge outrageous prices for getting the machines they require to run the postal servise... they are what is running then in the ground oh and the postal service them selfs for letting these vendors rape them over and over...let the raise the price of stamps they are still the cheepest...

I still have family members who do not have a computer,fax or anything else. One family member is my sister. She six years younger than me and has no use for one. No TV either. But I have both and use the computer only. WE were raised no TV. My daughters were raised no TV. We are not big TV watchers. I still send out Christmas, Birthday, Thanksgiving, Easter Cards every year to family and they love getting them. I still use USPS. I also order things out of catalogs I get. One less day I don't care.  

They  fail to mention that the biggest draw on the USPS is the amount of money it is paying for the  LAVISH benefits that retirees have along with a large amount of longtime over 20 + years worth of employees making over 20.00$ an hour with pensions,health care that they pay little into if any,Along with the abuse of OT and the Demands of the union

Worst run business in the USA!

Carriers on cell phones while delivering mail all Day!

No hustle or push to gt it done like you see the UPS and Fed-X people doing!

Union protection of Slackard, Lackards, do nothing employees!

Worst internal promotion system around! Unqualifed spervision and managers.

Don't hire qualifeid, educated college graduates, with new ideas!

Counter clerks that take breaks with lines out the door, come hell or high water!

( need to get rid of "Please use next Window sign)

Have a lot of good people that work for USPS, but it only takes a few bad apples to spoil the whole barrel!

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