This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Remedies for an Ailing Postal Service

Rate increases
The Obama administration threw its support Sept. 19 to postage rate increases that go beyond traditional adjustments for inflation.

The administration promoted the rate increase as part of a $3 trillion deficit-reduction plan. That recommendation included a suspension of Saturday mail delivery as part of the effort to stem the $10 billion loss the Postal Service is on track for this year -- because of future pension obligations -- and save more than $20 billion over the next few years.

The proposed increase, similar to one proposed last year, would hike rates by 8% to 9% for periodicals and catalogs and 5.8% as an average increase for all other mail.

Testifying before Congress in March, Ruth Goldway, chairwoman of the Postal Regulatory Commission, spoke about what she sees as the benefits of not letting rates exceed inflation adjustments.

"The price cap ... has proven to be a powerful incentive for the Postal Service to improve efficiency and reduce costs, including $11 billion in cost reductions in the past three years," she said. The streamlined rate-setting processes "have performed well, assuring postal customers small, predictable price increases not to exceed the rate of inflation. Since 2008, including the 1.7% increase approved this February, postage rates for market dominant products will have increased by a cumulative 8.4%, compared to a 16.8% increase in the published rates for Postal Service competitive products, which are not capped."

6 of 12

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMZN $445.10 0.00%
EBAY $59.20 0.00%
FDX $169.95 0.00%
GOOG $565.06 0.00%
WMT $79.84 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs