USPS has better options to clean up its financial mess than repeatedly gouging taxpayers and consumers.
A U.S. Postal Service truck pulls into the parking lot at the Pleasanton post office. The USPS supports a number of costly spending and discounting programs worth a second look.
Postal leadership claims that these painful pricing changes are necessary to get the USPS back into the black. But, according to a new report by the nonprofit postal watchdog “Keep US Posted,” this revenue-raising gambit is sorely misguided. The USPS cannot solve its dire fiscal issues by gouging hard-working taxpayers and consumers.
According to Keep US Posted, every January, the “USPS publishes its new demand equations and documentation. In FY2024 there were 63 items in its change log. Such extensive modifications show the large degree of subjectivity when estimating the model.” The USPS should at least explain why such large-scale changes are justified and how such alterations will lead to improved accuracy.
One problematic program is the “workshare discount” initiative. Each year, the USPS showers $15 billion-worth of discounts on private businesses that perform mailing-related work on behalf of the USPS.The basic idea of farming out postal operations and allowing private players to pocket the savings is a solid one, but only if the postage discounts correspond to actual savings.
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