… the Postal Service and the Board of Governors are committed to judiciously implementing a rational pricing approach that helps enable us to remain viable and competitive and offer reliable postal services that are among the most affordable in the world.U.S. Postal Service Postmaster Louis DeJoy announcing a 10-year plan “to achieve financial sustainability and service excellence” which includes a rise in price of first-class stamps from 55 to 58 cents.
- BACKGROUND: The USPS said the proposed price changes are meant to offset declining revenue due to diminished First-Class Mail volume, which fell by 32% over the past decade. The proposed increases, aimed to take effect in August, will raise prices overall by about 6.9%.
- DID YOU KNOW? The USPS is an independent part of executive branch and relies on revenue from the sale of services and products, like stamps – not taxpayer dollars – to operate.
- BIG PICTURE: The USPS has been operating at a loss for nearly 15 years, with its debts and liabilities far exceeding revenue. Since 2009, the USPS has been on the U.S Government Accountability Office's "high-risk list" due to dwindling business amid competition from businesses like, UPS, FedEx and Amazon, resulting in declining revenue. Since 2007, the USPS lost $87B, including a $9.2B net loss in 2020.
- The GAO says "the use of USPS's most profitable product—First-Class Mail—is expected to continue declining for the foreseeable future."
by Jenna Lee,