U.S. Postal Service Price Hike on the Horizon
The U.S. Postal Service will encounter an estimated $160 billion operating loss over the next 10 years. The Postmaster General, Louis DeJoy, believes a price increase is necessary for the U.S. Postal Service to continue to offer quality service to America and the world.
The U.S government's business skills have never been exceptional and the U.S. Postal Service is a telling picture of how insufficient our government is at running a business.
The U.S. Postal Service is trying to stay alive using antiquated technology and ideas that are based on a premise that started with the Pony Express in the mid-1800s. There have been changes and upgrades throughout the decades since, but the basic idea of getting a letter or package from one location to another remains the same.
The quality of service at the many U.S. Post Offices and outlets has declined over the years with complaints ranging from dirty rundown stations to long lines.
U.S. Postmaster General DeJoy says the price of a first-class postage stamp needs to go from 55 cents to 58 cents just to reduce debt for the troubled agency. The price hike would not be exclusive to first-class stamps but also to magazines and marketing mailers. The price hike would take effect on August 29, 2021, if the request is approved.
According to the Associated Press, DeJoy says the price hike is essential for the U.S. Postal Service to, "achieve financial sustainability and offer reliable postal services that are among the most affordable in the world."
The agency is also expecting management-level employee layoffs in an effort to trim operating expenses.
Dejoy was recently praised by government officials in Washington for doing an excellent job under the existing circumstances.