Postal Service recorded a loss of $15.5 billion last year and in order to cut the losses, postal service is planning to stop delivery on Saturday. If this plan goes into effect about $2billion would be saved.
"A New York Times/CBS News poll last year found that about 7 in 10 Americans said they would favor the change as a way to help the post office deal with billions of dollars in debt. The Obama administration also supports a five-day mail delivery schedule." However, labor unions and businesses are against it.
Given the losses of postal services, it makes sense to take such action. But, operation of postal services should not be justified only through profit. Its an important aspect of life of many people.
What do you think? Should they stop delivering on Saturdays? Private companies are making profits by running the business on weekends but why can't the governmental service operate smoothly? (LINK)
"A New York Times/CBS News poll last year found that about 7 in 10 Americans said they would favor the change as a way to help the post office deal with billions of dollars in debt. The Obama administration also supports a five-day mail delivery schedule." However, labor unions and businesses are against it.
Given the losses of postal services, it makes sense to take such action. But, operation of postal services should not be justified only through profit. Its an important aspect of life of many people.
What do you think? Should they stop delivering on Saturdays? Private companies are making profits by running the business on weekends but why can't the governmental service operate smoothly? (LINK)
This cut should have been analyzed according to the cost-benefit claim. According to the article, eliminating Saturday mail service will represent a substantial cost savings. However, one should keep in mind that the e-commerce and online purchases have been contributed to increase delivery services. Therefore, although it is hard to cut government spending, one should analyze the immediate and long-term consequences. I stress on the need of the government to analyze the cost-benefit. The economy is interdependence and one cannot take economic measures in an isolated way.
ReplyDeleteI am surprised that the Postal Service is a public service. In my opinion, it is clear that the Postal Service should be private otherwise the government will keep cutting in areas that is not its priority. I also think that the government has a huge role in the economy which should be minimized.
Priscila, I completely agree with your point of a cost-benefit analysis to take place to make this decision. However I personally think that saturdays should be cut from operations, if a two billion dollar annual savings is the result.
ReplyDeleteIt makes sense. And in all honesty, I think they should have made this move a long time ago. Most things that are time sensitive can just be emailed. Waiting another day or two and having more mail delivered at one time is no big deal. I feel it is a smart move and will not negatively impact their relationship with their customers to heavily.
ReplyDeleteI agree with Mark and Travis. If this cut means keeping the Postal Service, it is minor. There are already other options for people to use (UPS, Fedex) if they are not happy with this. The Post Office needs to take their own interests into account since they are so in debt. It's a change that will benefit them and can be worked around for businesses and people. No mail on Saturday and Sunday will become the new norm I think.
ReplyDeleteAgreed, snail mail is not the relied on form of mail anymore, and while it is still being used by most it should also be cut back in times like these where the government is struggling.
ReplyDeleteHalf the time, when I mail something and think ahead to when it will arrive, I leave Saturday out of the equation. If we are cutting this much from the costs of USPS, I'm all for it. One thing to think about: this cut comes in lost wages for many workers.
ReplyDelete