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Yesterday the Post Office announced a cost-saving proposal that would slow down the delivery of priority mail and cut about 28,000 workers. The plan would be expected to save about $2.1 billion. Timothy Taylor explains that $2.1 billion won’t be enough, because USPS has permanently lost business:
Starting in the middle of the 2000s, the mail was overtaken by the web. There is no way that snail mail can ever catch back up, a reality that has eluded USPS so far.
The only way for the USPS to survive, Taylor argues, is to make every structural change possible: raise prices, eliminate processing plants, restructure pensions and benefits, and find new non-mail sources of revenue.
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