Money losing government enterprise
paints bleak future for itself

The United States Postal Service (USPS) is a perennial money loser despite raising rates annually and attempting to get its costs under control. Tasked with delivering mail to every address in the nation, the USPS is a bloated government bureaucracy finding itself unable to compete in an age where digital technology and private enterprise have figured out ways of doing what it does faster, cheaper and smarter.

Earlier this week Postmaster General John E. Potter presented a ten-year plan for the USPS to stave off a projected $238 billion short fall over that time. His plan includes aggressive cost cutting including taking as many as 50 possible actions to help the USPS turn a profit. But before the postal service can institute change it must receive permission from its eleven member board of governors, nine of whom are appointed by the president of the United States. The USPS receives its authority from the US Constitution, but has been financially independent since the early 1980s.

“The crisis we’re facing gives us an historic opportunity to make changes that will lay the foundation for a leaner, more market responsive Postal Service that can thrive far into the future,” Potter said, stressing that there is no one single answer or quick fix to the crisis.

Over the next ten years, the USPS sees a further 37 percent drop in first class mail service, its bread and butter business. But even if their internal trimming continues apace, the postal service estimates that it will still come up short by at least $115 billion. Therefore, the Postmaster General has suggested that several deeper cuts take place including:

• Adjust delivery days. Currently, mail is delivered Monday through Saturday at residences, Monday through Friday to most businesses. Some critics have proposed eliminating either Saturday or Monday delivery.

• Restructure benefits. Health care and pension benefits for USPS employees are among the most generous in the nation. Changing these benefits to line up with the rest of the industry will bring about significant savings.

• Modernize access. Instead of relying on brick and mortar post office buildings, the USPS might utilize grocery stores, retail centers and other high trafficked areas to reach their customers.

• Flexible workforce. With tens of thousands of employees set to retire over the coming decade, the USPS may be able to scale back itself back while also cross training employees to take on other tasks.

• New products. Though not outlined in the plan, the postal service could introduce new products consistent with its business.

Potter said that the business plan is a path to the future, one where the USPS plays an important role in the American economy, while remaining an integral part of every American community and delivering the greatest value of any corresponding post service in the world.

“If given the flexibility to respond to an evolving marketplace, the Postal service will continue to be an integral part of the fabric of American life,” Potter said.

Source: U.S. Postal Service

Tags: post office, Postmaster General, U.S. Mail, U.S. Postal Service, USPS

Last month I read a story in the local newspaper where a nearby police department was warning residents of a scam targeting mailboxes. Apparently, thieves were driving through the town, opening up mailboxes to steal credit card applications and other consumer material, and using this information to steal their identity.

No one has been caught as of this writing, but scores of citizens have found their personal information compromised. From what I read, it is taking months for some people to get a handle on exactly what has happened to them and even much longer to correct the problem. One woman claimed that these problems kept her from getting a job as her trashed credit history made it look like she was irresponsible, hence no job offer.

AAA recently sent to me some timely information about identity theft, tips which can help you avoid being victimized by a crime that claims eight million Americans annually.

Ten Tips To Keep Your Credit Card Safe

• Safeguard your credit by treating your cards like cash.  Keep them securely in your wallet or at home when not needed.

• Review your monthly statements in a timely manner to ensure all charges are accurate and check your account online frequently. This will also help victims of Skimming detect fraud immediately. Skimming often occurs in restaurants and bars where credit cards are out of sight of the cardholder. Secret copies of the magnetic strip are made in order to make a counterfeit card.

• Report billing errors and lost or stolen cards immediately to resolve problems in a timely manner and reduce possible fraudulent activity.

• Be skeptical of all email that direct to a website in which credit card or personal information is entered. One of the largest forms of fraud is “Phishing,” in which victims receive an email that directs to a phony website that is an exact copy of a real website and requests users input personal and financial data supposedly verify accounts.

• Carry credit cards as needed, reducing the amount of cards you carry will decrease exposure to loss or theft.

• Keep credit card numbers secure – do not give out your information over the phone unless you are familiar with the merchant or you have initiated the call.

• Track your usage by keeping receipts for your ATM, credit and debit cards.

• Keep a list of your credit card account numbers, issuer contact information and the three credit reporting agencies in a safe place to allow for quick reporting if they are lost or stolen.

• Shred pre-approved offers, card receipts, and anything that displays your credit card information before putting them in the trash.

• It is wiser to use a credit card, rather than a debit card when making purchases over the Internet. When you use a debit card, it is your money at stake and not the bank’s.

Finally, if you believe that someone is tampering with your mailbox, call you local police as well as your postmaster or nearest postal inspector. The United States Postal Service takes seriously crimes related to tampering with the mail and will prosecute convicted felons to the full extent of the law.

Resources

Emergency Income in the Event That You Lose Your Job

Florida Students Find SS Numbers Compromised

Postmaster General Sends Advice to Prevent ID Theft

Source: AAA

Tags: i.d., identity theft, police, post office, USPS