"From the historic peak volume of 213 billion pieces per year in 2006 to 109 billion pieces today, we have lost over 104 billion pieces per year in our system. For perspective, if all of that lost volume was paid at the current price of a stamp, which is 78 cents, that's about 81 billion dollars. No company could weather that much revenue loss."
"At our current rate, we'll be out of cash in less than 12 months. So in about a year from now, the postal service would be unable to deliver the mail."
"Our regulator ensures that we won't make money or break even - out of fear of a non-existent mail monopoly. No private company is as limited in its credit access as the Postal Service, and certainly not one with our scope, operational complexity, and importance to the American public."
Postmaster General David Steiner testified before Congress that USPS operates at a critical juncture, having lost over 104 billion pieces of mail annually since its 2006 peak of 213 billion pieces. This revenue decline represents approximately $81 billion in lost income. At current rates, USPS will exhaust cash reserves within 12 months, preventing mail delivery. Steiner identified overregulation as a primary constraint, noting regulatory restrictions prevent profitability. He proposed increasing first-class stamp prices from 75 cents to 90-95 cents to address controllable losses and requested Congress expand USPS borrowing authority, arguing the agency faces credit limitations unlike comparable private companies.
#usps-financial-crisis #postal-service-reform #congressional-testimony #stamp-price-increase #regulatory-constraints
Read at Fast Company
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