The Postal Service just announced roughly $3 billion in service cuts that will slow down the delivery of first-class mail for the first time in 40 years. Starting in April, it plans to shutter more than half of its 461 mail processing centers, stretching out the time it will take to ship everything from Netflix DVDs to magazines. One-day delivery of stamped envelopes will all but certainly become a thing of the past.
The announcement is just the latest sign of a sad and increasingly dire fact: the Postal Service is in shambles. This past fiscal year, it lost a mere $5.1 billion. In 2012, it's facing a record $14.1 billion shortfall and possible bankruptcy. In order to turn a profit, Postmaster General Patrick Donahoe says the agency needs to cut $20 billion from its annual budget by 2015. That's almost a third of its yearly costs.
How did it come to this?
The culprits include the Internet, labor expenses, and, as with pretty much every problem our country faces now, Congress.
