FLAWS AND INACCURACIES IN USPS’S EXIGENCY FILING UNDERMINE ITS REQUEST FOR ABOVE INFLATION RATE POSTAGE INCREASE
Ignoring Digital Diversion and Impact of Recovery Undercuts USPS Request for Increase above Inflation Rate
Washington, D.C., November 26, 2013 – Today, a broad coalition of postal customers and suppliers asked the Postal Regulatory Commission (PRC) to reject a Postal Service proposal to raise most postage rates in January by three times the rate of inflation. The USPS claims that the rate hike is necessary to offset the continuing effects of the 2007-2009 recession. The industry filing shows, however, that the main reason for the Postal Service’s recent losses is competition from the Internet, a long-term problem that does not entitle the USPS to an above-inflation rate increase.The industry’s filing, supported by economic testimony from Christian Lundblad, Edward M. O’Herron Distinguished Scholar and Professor of Finance at the University of North Carolina’s Kenan-Flagler Business School, shows that:
- Informed observers–and even the Postal Service itself–have recognized that the vast majority of the decline in mail volume from 2007 to 2012 was the result of digital diversion to other means of communication;
- The Postal Service’s economic models assume that recessions get deeper and deeper forever, a nonsensical assumption; and
- The USPS’s model uses a heads-I-win, tails-you-lose approach; it disregards all of the positive effects of the post-2009 economic recovery on mail volume.
“You could drive a mail truck through the holes in the Postal Service’s arguments,” said Jim Cregan of the Association of Magazine Media. “The main reason for declining mail volume over the last seven years is digital diversion – the long-term trend toward electronic correspondence, internet advertising, and electronic bill presentment and payments. This has left the USPS with too little mail to cover the costs of its network. The Postal Service must face the facts and right-size its operations, not drive even more volume away by raising prices so drastically on its remaining customers.”
Tony Conway of the Alliance for Nonprofit Mailers said, “If you take the Postal Service’s study at face value, then all of the mail volume losses since 2007 are the result of the 2007-2009 recession, and none result from digital diversion. To make it even more improbable, the USPS says that the effects of the recession, which ended several years ago, will get worse in 2014 and 2015. It’s hard to imagine anyone could take these claims seriously.”
Mailers goal is to create revenue to increase their earning. USPS is a means to spread adverting ads (junk mail)to potential customers. The USPS is a means to deliver ads to mailboxes which is a massive number
exposed to mailers advertisements. These mailer want the cheapest means to meet their need. USPS is a looser as this is a low revenue high distribution cost.
Mailers play politics TO CONTINUE TO SUCK BLOOD FROM THE POSTAL SERVICE.
@ANGRYnewyork,
this is wtah happens when you get ANGRY. Now I know yo daddy, and him pimping yo momma every night when she shuld be home and teachin you have to hurt you alll those yeers. AngryNEWYORl, your city is nothing but reely bad and moldy rottun sandswiches. You should try to see a doctr for all that pent up aggreszion you have. Is you moomy still sellin that crack, and her puzzy ? YEP, in knew that,, why else woud you take the timez to post thougts that make no senze…Haaaaa haaaaa haaaa…You are a LOSER, Mr. ANGRYNEWYORK/what a sukkoff city, the rottun little apple…..lol
The article whether intended or not doesn’t explain the entire truth to this argument. In 2006 the postal service was effected most by the decline in “first class mail” which was a major contributor to it’s financial independence. Compound this with the down turn in the economy and the signing in to law by the Bush adminstration of the Postal Accountability & Enhancement Act in 2006 which mandates the postal service to prefund health care benefits of future retiree’s, a 75 year liability over a 10 year period. No other cooporation or agency is required to this. The provision costs the postal servcie 5.5 billion dollars a year. The postal service has continually asked congress to pass a postal reform bill that would first take away this rediculous 5.5 Billion dollar payment, give them the ability to compete with their competition through unrestricted marketing, delivery, and pricing of products. Allow them to expand to offer more digital services. These are the real reasons the postal service must raise rates. The mailing industry should be complaining to the worst congress in recent years for getting things accomplished on capitol hill. Whom the postal service has redundantly asked for a fair postal reform bill for everyone. The ironic thing in the complaint of raising rates above the inflation rates is that the discounts the postal service has given commercial mailers for sorting their own mail before bringing it to the postal service has exceeded the legal limit allowed by law. Maybe what the postal service should do is stop giving these discounts which add up to billions of dollars then they wouldn’t have to raise rates!
Velasis keep killing jobs. I just delivered hundreds of your mailings that got to me 3 days after your requested in home date. You wanting to keep costs down is affecting your own campaigns. This was reported to management when first noticed, let’s hope they do the right thing.
The main reason for loss of revenue at the post office is not the economy nor the internet. The cause of not enough revenue is postal management undercharging large customers. When the Post Master General was asked how much the discounts came to, the answer was between $14 and $18 billion a year! This amount is far beyond the amount of lost first class revenue and congressional mandate of funding post retirements for the next 75 years, put together.
You are a fucking moron J.C
OKAY, maybe once i raised my sandwsdiches a penny or too, but I was under PRESSURE FOLKS, real PRESSURE. I am a postal worker, and I cant take PRESSURE…
“IT’S EDABLE”….
LISTUN,
I have nevr once raised the rates on my SANDSWICHE/’ES, NOT ONCE.
Ya FUCKKERS, and I have to deal with the EPA, the CIA, NCIS, NCIS-LA, NCIS-New York, Obama’s Liberal cabinet, the FAA (faggs against ass club), and the local PTA. NEVER has I raised the price of my SANDWISHEDS. Not once. Now put dat in your pokket and smoke it…
REMEBER, “IT’s EDIBLE……”