When I read about the financial woes of the U.S. Postal Service I hear a song “Video Killed the radio star” from the Buggles in my head. So the facts are this:
The U.S. Postal Service reported an $8.5 billion loss in the fiscal year that ended in September and said it will run out of money in 2011. So what does this mean? Postal officials will be asking congress today to rewrite a 2006 postal reform law that requires USPS to pay about $5 billion each year to pre-fund retiree healthcare fund. Close hundreds maybe thousands of post offices, and get rid of Saturday delivery.
The mail volume has droped 20% in the past five years, almost all due to new technology. Now we have the ability to move messages quickly, pay bills online, and text and IM all without the postal service. Be honest, when up put something in the mailbox these days it is because you choose to, not because you have to.
With these technology changes I have a hard time seeing the Postal Service's volume ever increasing again.