NIARG EHT TSNIAGA
Everything IS backward in this drama. Trouble is, it’s not fiction. It’s the real world, and it will affect OUR world. Mightily.
As for the chances of passage of a House bill and reconciliation before May 15…prognosis: “Negative.” However, many believe there is a better than 50-percent probability of something passing by the end of the lame-duck session after the election.
Hence, come May 15, the USPS will begin to make some of the changes it is allowed to make in the absence of definitive legislation. Hopefully, this postpones its run-in with the $15 billion credit limit until later next year.
Of course, this begs the question of what happens when it hits that limit? The truth of the matter is that long-term solvency for the USPS does not depend on cutting underused office locations. And five-day delivery, while pragmatic and appropriate, isn’t the panacea that some people seem to think it is. Those are well-conceived, but insufficient, responses that belie a much larger issue—much of the postal service’s fiscal crisis comes from a provision in the 2006 Postal Accountability and Enhancement Act that requires the USPS to prefund its Retiree Health Benefits Fund at the rate of approximately $5.6 billion a year. In today’s postal market, the service just can’t make those kinds of payments without running up huge deficits.
Unfortunately in the United States, we’ve also dealt with myriad crisis within the past few years and we have some data points for reference. Creative destruction has been met with a wide-range of solutions, but in almost every case, it has involved a new authority, massive restructuring and, oftentimes, the imposition of artificial, non-market “props” that have forsaken long-term solutions in favor of short-term, politically palatable expediency. If Postal Service’s day of reckoning is postponed, and this turns into a far greater crisis, it WILL mean dramatic postage increases.
A third-generation printer, Dustin LeFebvre delivers his vision for Specialty Print Communications as EVP, Marketing through strategy, planning and new product development. With a rich background ranging from sales and marketing to operations, quality control and procurement, Dustin takes a wide-angle approach to SPC