The United States Postal Service that we all take for granted could be at risk of bankruptcy. With most written communication switching from letters to the Internet and more people going with UPS and Fedex the Postal Service is losing money. While the other shipping businesses are free to make any changes they deem necessary to keep their business going, the Postal Service is restricted in its options. Unlike many of the other government agencies the Postal Service doesn’t receive any tax money to keep its operations afloat. They also have to set aside health benefits for their employees well in advance of retirement and they are restricted in their ability to close down offices that are performing poorly. All of these restrictions make it even more difficult to make a profit in this horrible economy.
With all of the financial difficulties that the Postal Service is facing they have no choice but to hike up their prices yet again. On top of the standard stamp price increase, they are also raising the price of their priority mail shipping and their overnight. Priority mail prices will be going up by around 3 percent and overnight shipping will be switched to a flat rate model of 40 dollars a package. The overnight shipping is up from a sliding plan that starts at 13 dollars a package and increases depending on the weight of the package. Even with the price hike the Postal Service will only gain a little headway and could face an eventual collapse without help from the government.