Rick Geddes, an expert on the U.S. Postal Service, professor of Policy Analysis and Management at Cornell University, and author of “Saving the Mail: How to Solve the Problems of the U.S. Postal Service,” discusses the pros and cons of the postal service’s three-cent rate hike that goes into effect today.
“The United States Postal Service is in fiscal distress. It lost $5 billion in the 2013 fiscal year, on top of a $12.9 billion loss in 2012. This postage increase is likely to improve the USPS financial health in the short run.
“U.S. postal rates are low relative to those of many other countries, and many analysts believe that many rates charged by the Postal Service should rise.
“In the longer run however, a rate increase may accelerate movement into electronic alternatives for physical mail delivery.”