Too Big to Mail?

[Commentary] The Post Office may be the next too-big thing. If it continues on its present course, the U.S. Postal Service stands to post $6 billion to $12 billion in losses by the end of the fiscal year. By the end of the second quarter of fiscal 2009, it had racked up an operating loss of more than $2 billion, almost equal to its total losses last year. So far, the Postal Service has depended on loans from the Federal Financing Bank, a federal borrowing agency, to help make up the difference, but it is fast approaching its $15 billion credit limit. Something has to give. The Postal Service has asked Congress to omit a rider on an annual appropriations bill that mandates six-day service, opening the possibility of five-day delivery as a cost-cutting measure. It has also requested a temporary relaxation of its obligation to its pension program, enabling it to put nearly $2 billion toward breaking even. Both these short-term fixes fail to address the challenges facing the Postal Service. Before computers, people depended on the mail to maintain relationships and conduct business. No longer. Overall mail volume has been in a nosedive for seven years.