A Better East Texas: Postal rate increase

The postal service has asked for a rate increase again. Now remember that the Postal Service does not receive tax payer dollars and is essentially a non-publically funded, but exclusive business regulated by the government. The agency posted a loss of 3 point 8 billion dollars in its last fiscal year. The current structure allows for rate increases limited to the rate of inflation but this increase exceeds that. The postal Service business model is broken. It is obvious that demand for mail has dropped because of the internet but most people still use the Postal Service occasionally through the year.  However, the solution to their problems cannot be a rate increase for a shrinking number of consumers and businesses. Simply put – higher rates for mail delivery will drive people to less expensive alternatives very quickly. Radical changes including cutting Saturday delivery, closing less profitable post offices and offering more services on-line have all been suggested but many of these changes require Congressional approval and thus politics enter the picture. This rate increase is essentially a use tax and this cycle must be broken because business as usual will doom the Postal Service. Other businesses should take a lesson from the Postal Service on how not to adapt to changing conditions, and that will make for a Better East Texas.