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July 8, 2010
Graph of the Day for July 8, 2010
"On Tuesday the U.S. Postal Service announced it wants to raise the price of your stamps by another two cents, bringing the price to 46 cents. The hike would also be applied to other postal services; the cost for mailing small packages would increase by roughly 7 percent... The increase would bring in roughly $2.5 billion, not even half of what the postal service expects to lose this year." ABC World News, July 6, 2010.
"USPS's business model is not viable due to USPS's inability to reduce costs sufficiently in response to continuing mail volume decline and revenue declines... Given its financial problems and outlook, USPS cannot support its current level of service and operation." The Government Accountability Office, April, 2010.
Source: Dr. Mark Perry, Carpe Diem.
Hoven's Index for July 8, 2010
30-year (Jan 1981 to Jan 2011) increase in CPI: 154%
30-year increase in cost of gasoline : 115%
30-year increase in cost of postage stamps (given new 46 cent price): 207%
US Postal Service (USPS) decline in mail volume 2007-09: 36 billion pieces (17%)
USPS losses, 2007-2009: $12 billion
USPS unfunded pensions and retiree health obligations and other liabilities: $90 billion
Employee compensation and benefits as percentage of USPS costs: 80%
Sources: Links for CPI, gasoline costs and stamp prices provided at Carpe Diem. USPS statistics from the Government Accountability Office. (Also see previous Graph of the Day.)
Graph of the Day Archive.