USPS Root Problem

The issue with the USPS is not the following:

• An idea that the only way to save it is to cut costs. This thinking is out dated and will continue to exacerbate the problem. Ill go into this in more detail later. 
• An unmotivated workforce. This is certainly not the case but the cost cutting of benefits both current and long term is causing the USPS Employees to question their motivation
• The current system is working fine. This is not the case and needs a dramatic over hall to fix the problem.

The Root Problem is the following: 

• No business in there right mind would ever charge only 49 cents to pick up, sort, move, drive around town, find a mail box, walk to the mail box, and place a piece of paper in a metal container.
• A business like the USPS should be charging much much more to delver the mail. UPS will not purchase the USPS because it knows that this business is running will extremely low margins.  Personally I would pay up to 99 cents to have a piece of paper in an envelope delivered across the country. 
• The USPS can not run on a model of volume any longer. As the increase in electronic media rises it will continue to threaten the survival of the USPS. There can be a symbiotic relationship though. 

The solution is really simple: Raise the Postage!  

But it is also a complicated issue that needs to be taken in bite sized chunks. Raising the postage rates over night would have detrimental consequences to our economy. 

Click here to read about why you could not raise the rates over night.