Michael Caldwell: Postage increase treats ‘symptoms’ instead of ‘disease’

Published 10:46 am Thursday, January 9, 2014

Have you ever heard the expression, “It is like putting a Band-Aid on a broken arm?” Well, that is essentially what is occurring with the U.S. Postal Service’s recently approved rate hike.

Starting Jan. 26, a first-class stamp will cost 49 cents, a more than 6 percent increase over the current rate of 46 pennies. Not just impacting citizens’ pocketbooks, this will be a huge blow for businesses that rely on the mail.

The rates to mail magazines and other publications — such as the two daily and two weekly newspapers printed by Leader Publications — will also go up a comparable amount. Businesses will be forced to pass this increase on to customers or look for other delivery alternatives.

A rate increase this large has to be approved by the Postal Regulatory Commission, which did so in a 2-1 vote last month — with the caveat that it will be temporary and expire in two years.

And if you believe that I have some prime real estate in Florida that I would love to sell you.

It is no secret that the U.S. Postal Service has struggled mightily in recent months, losing billions of dollars each year. However, attributing all the losses to the far-from-recovered economy and trying to make it all up on the backs of those still using the USPS is a shortsighted perspective and strategy that is destined to fail.

How long will it be before another increase is needed?

Admittedly, the USPS has been essentially handcuffed because major changes have to be approved by Congress, which has balked at doing so and resisted eliminating Saturday delivery or changing how retirement benefits are handled for postal service workers.

Now is the time to rethink the entire approach and look for holistic solutions to save this vital institution. This will require we truly evaluate the root of the problem.

All involved will likely have to make sacrifices and concessions.

The postal service is made up of many hard-working men and women who do everything they can to serve our citizens, but the organization as a whole has to change. That means Congress has to stop bickering and come to the table with real solutions.

There is no “magic bullet” that will cure all the ills of the agency that operates without tax dollars and relies solely on those who use it.

In reality, it will likely take a combination of rate adjustments, delivery changes, organizational modifications and a strong marketing effort to return the postal service to the proud, standalone entity that has served our country well for decades.

Consumers and businesses alike have to feel like the United States Postal Service is working for them instead of just profiting from them.

Our nation was built upon a powerful mail system that was second to none. That has changed in recent years as competitors now offer comparable — or better — shipping options.

Now is the time to get to the root of the “disease” instead of just treating the “symptoms.” This is the only diagnosis that will help the USPS recapture its glory days — before it is too late.

 

Michael Caldwell is the publisher of Leader Publications LLC. He can be reached at (269) 687-7700 or by email at mike.caldwell@leaderpub.com.