Message in a bottle. Money, it’s a hit. Can they save the Post Office?
Loss of revenue from first class mail, competition, and a mandate to prepay retirement benefits 75 years into the future have created a financial crisis for the US Postal Service. Because Congress has shown little appetite to repeal the mandate, many solutions have been proposed to alleviate the financial woes of a well-liked institution. Recently, two proposals have been gaining traction: allow the USPS to deliver alcohol and reinstitute postal banking to provide much-needed revenue.
Video Spotlight: Postal Banking
This post is based on the NBC News article, Postal Banking, Alcohol Delivery Could Save the U.S. Postal Service, Experts Say, by M. Pflum, March 27, 2021, and the YouTube video, Saving the Post Office?, by CNBC Television, June 28, 2019. Image source: Erol Berberovic/Getty Images.
1. Contrast Postmaster Dejoy’s proposals to save the US Postal Service and those described in the article? Discuss their respective merits and how they create value for postal customers.
Guidance: Postmaster Dejoy’s proposals involve increasing revenue with higher postage rates and lowering costs with slower first-class mail. Both approaches would improve the financial situation Continue reading