February 11, 2013
The United States Postal Service announced plans last week to end Saturday mail service, saving the beleaguered post office an estimated $2 billion a year.
The Heritage Foundation’s James Gattuso explains why this is a good idea:
Despite all the hand-wringing, however, this was a common-sense step by postal managers, who are faced with a flood of red ink that reached $16 billion last year. And given the relentless march of digital technology, more changes will be necessary if USPS is to survive. The question now is whether Congress will let those necessary changes take place or block them, dooming the enterprise and putting American taxpayers at risk.
The post office is in serious financial trouble, as Gattuso reported last year:
It is no secret that the U.S. Postal Service (USPS) is in financial trouble. Its business is shrinking, with first-class mail revenue dropping 25 percent since 2006. As a result, the government-run enterprise is facing a sea of red ink, losing some $25 billion in the past five years. Losses of up to $20 billion annually are predicted for coming years.
“The good news,” Gattuso says, “is that USPS—long a metaphor for inefficiency and mismanagement—seems willing to make the unpopular decisions necessary to deal with the new environment.”
Do you think the post office is doing the right thing by ending Saturday delivery? Tell us in the comments below.