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Affordable Mail Alliance Calls on Postal Commission to Dismiss Rate Hike Request

July 26, 2010

"The result has been devastating,” the motion argues. "In Fiscal Year 2009, when prices in the overall economy actually declined, the Postal Service costs per unit of output increased by more than six percent. Had the Postal Service merely held its costs to the level of inflation in the general economy, the Postal Service would have made a profit in 2009."

The AMA noted that businesses large and small and individuals across America have tightened their belts, cut their spending, and made painful choices due to accommodate challenging times.

"Now the Postal Service expects customers to pay the price for its refusing to do what its customers had to," the AMA said. "For our organizations, the Postal Service's unwillingness to do its part will mean the loss of thousands of additional jobs, further cuts to pay and benefits. This is an issue about investing for possible future growth or paying higher taxes in the form of higher postal rates. At this time of a shaky economic recovery, this is the functional equivalent of a tax increase on every American postal customer, whether individual or business. If this takes effect January 2, 2011, and American businesses and consumers will be spending more on postal services, there will be less money for investment, payrolls, and business growth.

"Punishing customers with higher prices is not the way to make the Postal Service solvent. In fact, without effective cost control, trying to make the Postal Service solvent through financial infusions will be like trying to fill a bucket with a hole in its bottom. The Postal Service will lurch from one financial crisis to the next. The American people will sooner or later have to pay, through higher taxes or higher prices."

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