The US Post Office has submitted a 5-year business plan proposal to congress that increases the price of stamps to $0.50 and ends Saturday delivery of mail. This 11% increase in the price of stamps could generate $1 Billion in new revenue for the US Postal Service.
The stopping of Saturday delivery will also save the US Postal Service $2.7 billion annually, but will also reduce the workforce by an estimated 155,000 by 2016. Nearly 3,700 Post Offices would face closing according to the plan.
Are These Changes Enough?
With the Post Office forcasting a loss of $14.1 billion dollars this year, will these changes be enough to sustain the postal service for years to come? It’s hardly a drop in the bucket when you consider the surmounting debt that will continue to pile up year after year. Unless serious workforce cuts and price increases happen, the Post Office doesn’t appear that it’ll be sustainable for too much longer.
Of course, it is a government agency, so we can expect to see it around as long as the government is around.
There’s Got To Be a Smarter Way?
We’re all about being smart with our money here at Smart Money Hacks, so we’ve come up with a solution: Allow the private sector to come in and compete with the Post Office.
Of course, we always have the option to email or fax things as well if you don’t like the rising price of stamps.
Does the news about the Post Office make you upset, or do you even care?