The U.S. Postal Service announced today that it intends to end Saturday mail delivery beginning on August 1st. According to the USPS, the move would save the government’s beleaguered mail monopoly $2 billion a year. The USPS has lost over $40 billion since 2006 and it has maxed out its $15 billion line of credit with the U.S. Treasury. With mail volume in permanent decline, the USPS has no choice but to try and cut costs.
Congressional meddling has made it difficult for the USPS to downsize its operations to reflect economic and financial reality. Indeed, the USPS has been asking Congress to allow it to drop Saturday delivery service for the past couple of years, but those pleas have been rebuffed. With the USPS literally on the verge of not being able to pay its bills in full, it will be interesting to see if Congress finally relents.
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