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USPS, Shiny Objects, Recovery, and Recession

The USPS exigent price increase has expired, and USPS says they “will lose approximately $2 billion in annual revenue resulting from a price reduction” which they knew was going to expire. The increase was to help “recover for the massive volume and revenue losses resulting from the Great Recession.” Yet, Dr. Joe shows that the declines in USPS volume kept declining after the economic recovery began in mid-2009. Then Dr. Joe talks about recession in light of recent economic data. Yeah, they’ll be calling him Dr. Doom again.

Monday, April 11, 2016

The “forced” price reduction by the US Postal Service (read their release) is, as my late mother-in-law used to say with a slight Hungarian accent, “a lotta hooey.” This was the expiration of an increase forced onto postal customers and the public based on the terms of an exigent price increase program to save the USPS when they were in financial trouble. During its time, the USPS was to get their house in order before its planned expiration.

Now, the USPS is claiming it is being shortchanged when in reality its customers were being overcharged. Is this like the slayer of parents asking for the mercy of the court because he was recently orphaned? USPS problems are a long term combination of self-infliction, myopia and a large doses of oversight and regulatory meddling. It’s time to set the USPS free, and let it run as a real business making the hard decisions real businesses have to make.

Instead, they’re backed into a corner. By focusing automation efforts on big postal customers who supply the bulk of their volume, where the savings would be fastest and biggest, they rarely found time to nurture small postal user volume or make aggressive efforts to create new businesses. EDDM is not the answer for everyone.


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About Dr. Joe Webb

Dr. Joe Webb is one of the graphic arts industry's best-known consultants, forecasters, and commentators. He is the director of WhatTheyThink's Economics and Research Center.

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