Technology has given us the flexibility to attach with almost anyone at any time and without spending a dime. But there’s just something nostalgic and tactile about receiving a letter or postcard within the mail, be it a marriage invitation or a postcard from a loved one from afar.
But many even have a love-hate relationship with the United States Postal Service. Mail gets lost, undelivered – or sometimes even returned with a legitimate postmark and address. In fact, “the ability of the Postal Service to provide acceptable service is an ongoing concern throughout the United States.” accordingly The Office of Inspector General for the United States Postal Service.
But USPS announced An 8% stamp price increase was proposed Tuesday, which might bring the associated fee of a First Class Mail Forever stamp to $0.73. It’s just one other sign of that unfavorable leadership by Postmaster General Louis DeJoy, who was appointed by former President Donald Trump. DeJoy was a significant Republican Party donor and Trump fundraiser — in addition to the primary postmaster general in 20 years without USPS experience.
Under DeJoy, the USPS has hemorrhaged money. In the primary quarter of fiscal 2024 alone, USPS reported a net lack of $2.1 billion, greater than double its $1 billion net loss in the identical period last 12 months.
“Under DeJoy, USPS has failed to adequately control labor costs while service quality has declined and prices have increased,” said Robert D. Atkinson, president of the Information Technology and Innovation Foundation, a think tank specializing in productivity and innovation issues. “This is not sustainable, and the more prices rise, the more volumes fall until USPS enters a death spiral.”
But DeJoy, who was previously investigated by the FBI Related to previous political fundraising efforts, he says he has a 10-year plan to revitalize the Postal Service. He has been in his position since June 2020 and plans to serve the total term. Plus, President Joe Biden doesn’t have the facility to remove him from his post, regardless that the agency is struggling a lot.
“Get used to me” DeJoy said in February 2021. The postmaster general is appointed by the Postal Service Board of Governors — and might only be fired by that group, not the president. However, governors are appointed by the president, and in 2022, 83 public interest groups led by the Save The Post Office Coalition sent a letter to Biden asking him to nominate candidates for the Postal Board of Governors to switch DeJoy as his candidate “We would hold “destructive leadership” accountable and strongly support the expansion of USPS services.”
“The president’s nominees should bring a diversity of life experiences to better represent both the postal workforce and the nation as a whole – and not just another rich white man like Louis DeJoy,” Porter McConnell, co-founder of the Save the Post Office Coalition, said in a press release opinion.
Why the USPS keeps raising its prices
This is the second time in six months that USPS has requested a rise in service prices Rates for mountaineering shipping 5.4% in November 2023.
“Price changes in the postal and shipping market continue, [and] “These price adjustments are necessary to achieve the financial stability envisioned in the organization’s 10-year Delivering for America plan,” a USPS spokesperson said Assets. “Postal service prices remain among the cheapest in the world.”
While that is all — on the surface — a part of DeJoy’s master plan to repair poor service across the country, the corporate probably won’t have the opportunity to maintain raising prices indefinitely, experts say.
“USPS raises prices because it continually loses money in its business and subsidizing the USPS with general tax dollars is unpopular and unnecessary,” said Stephen Henn, associate professor of economics and finance at Sacred Heart University Assets. Also, USPS will not be as profitable as FedEx or UPS as the associated fee of sending letters and packages remains to be comparatively less expensive than a for-profit option.
Factors contributing to USPS user dissatisfaction – and overall reduced productivity – include lower mail volumes, higher operating costs and a “rapid shift” toward digital communications, says Robert Khachatryan, CEO of Freight Right Global Logistics Assets.
In his 10-year plan, DeJoy hopes to modernize operations and improve competitiveness within the shipping and postal industry as mail volumes decline, Khachatryan said. But it also seeks to supply additional funding to deal with ongoing challenges in USPS services across the country. Accordingly, just about all US states are below targets for on-time service Office of Inspector General for the United States Postal Service Data.
“The push for price increases is partly due to the ongoing challenge of maintaining acceptable levels of service,” says Khachatryan. “The Office of Inspector General reports highlight service as a persistent problem, suggesting that additional revenue from higher prices could be directed toward improving operational efficiency and customer service.”
Additionally, USPS has requirements that don’t apply to for-profit firms like FedEx and UPS. USPS is required to deliver top quality mail to any address within the United States at the identical rate, no matter distance.
“Sending Grandma a Christmas card costs the same whether it’s sent from Maine to New York or from Maine to Hawaii,” Henn says. “For-profit companies can base their prices on the cost of delivery from Maine to New York or Hawaii.”
Despite the challenges of competing with for-profit organizations, DeJoy stays confident he can turn across the struggling agency in the approaching years.
“I am increasingly confident that we can provide the nation with a postal service whose best days lie ahead,” DeJoy told the USPS Board of Governors in February. “We are in a race to a finish line that transforms our financial and service trajectory before we run out of money and need other financing options.”
But other experts don’t see the prospects for the agency, which technically operates independently of the manager branch of the U.S. federal government, as vibrant.
“The Postal Regulatory Commission needs to stop being so passive and start holding USPS accountable to reduce costs and increase efficiency,” Atkinson said. “Congress may also have to intervene because the current trend is not sustainable.”
