Financial Decline Of U.S. Postal Service

It may be possible that the United States Postal Service, as it currently exists, may not be sustainable. A recent push to cease Saturday delivery was nixed by Congress, who feared that rural areas would feel a significant impact should Saturday delivery stop. That decision has left the United States Postal Service in a precarious situation. Showing a net loss of nearly $16 billion dollars in 2012 and steady annual revenue decreases, many experts are calling the current structure financially disastrous. The financial decline of the Postal Service did not happen overnight, though losses have come more quickly than some had anticipated. Numbers of mail sent by the U.S. Postal Service has dropped around 21% during the last four years and that is a trend that is likely to continue. As online communication becomes the business norm, the amount of paper mail is expected to drop even further, resulting in increased cost to the consumer. Increased costs to send mail is anticipated to decrease the amount of mail sent even further. Caught in a perpetuating cycle, the U.S. Postal Service is still looking for a way to regain financial stability. Online bill payment and other electronic communication services are making their way to even the most rural areas. New statistical information shows that nearly 80% of Americans have good internet access and that the number of people doing business online has increased steadily over the last twelve years, with the increase between 2011 and 2012 being one of the most significant. New cell phone technology, as well as other hand held devices, has also contributed to the shift to online business. In the face of mounting financial strain and congressional intervention, the United States Postal Service is considering other options, including asking union employees to take pay cuts and other benefit cuts. They are also considering a significant hike in mailing costs, though neither options has gained much support.