There has been a proposal by the United States Postal Service to increase the price of first-class stamp’s. This increase will be about two cents. There has been a decrease in mail volume over the past couple of years. Regulators may approve of this action. The increased to $.46 for a standard letter would not go into effect until January 2011. This would be the seventh rate increase in the past decade.
The Postal Service has been struggling for years. The increased use of the Internet has caused mail volume to drop dramatically. there isn’t an easy solution to the financial troubles. The Postal Service will face continual issues as time progresses. They have discussed changing the frequency of delivery, stopping Saturday mail delivery, and other ways to cut costs.
There is some speculation as to the future of the Postal Service. A constant rate increase will only upset the general public and may eventually cause more problems in the future. As a temporary fix, the rate increase should help them for the rest of the year. But many have speculated as to the correct course of action the Postal Service should take. With dwindling use and increasing costs, the postal service’s stays may be numbered.
Guest Author: Aaron Black
Source (WSJ)