The first time there was talk of privatizing the Postal Service was in 1979 when the Postal Service was losing vast amounts of money in the long run. But since the Postal Service is a necessity for America, the government had to subsidize the service in order for it to continue in operation. In 1979 the United States Postal Service had a cash flow of $22.5 Billion and was additionally receiving $176 million from investing. Even with this added reven

The Postal Service isn't stopping with the revenue that it is receiving now. The Postal Service is planning to increase its international revenues of $1.2 billion by twice the amount in the next five years and tenfold by the year 2005. The Postal Service is continually working to "streamline" their operations for the future that they are now running. The Postal Service is continualy looking to cut back on borrowing money. All of the recent financial borrowing has been through the Federal Financing Bank, but the Postal Service now is looking into outside sources, such as bonds in the public markets.

The first time there was talk of privatizing the Postal Service was in 1979 when the Postal Service was losing vast amounts of money in the long run. But since the Postal Service is a necessity for America, the government had to subsidize the service in order for it to continue in operation. In 1979 the United States Postal Service had a cash flow of $22.5 Billion and was additionally receiving $176 million from investing. Even with this added revenue the Postal Service was still greatly under funded on its own. During this time it was discussed to privatize the postal service and introduce competition because of the extreme losses that the service was experiencing. A positive argument for privatizing the Postal Service was with numerous competitors in the market there would be more efficiency and the public would receive lower prices. But this would also increase the usage of resources, for example airplanes and cars. One of the problems the Post Office had was its receipts from consumer purchases that were submitted the next day after the transaction. If the receipts were submitted earlier the postal service would receive more money because they could invest that money sooner. Another way the Postal Service could increased profits was by competitively selecting banks that would give them higher interest rates and such. Probably the most relevant and final way to improve the budget of the Postal Service is to improve the bookkeeping policies and banking techniques.

Not only did the Post Service propose to increase profits but they also proposed to cut costs in a number of ways. There were three methods that were proposed in 1946 for the protection of salaries that no longer exists. These have to do with the rural mail carriers. Under this antiquated method of delivering mail the Postal Service was losing money to any mail that went to "rural" areas. There are 48,000 mail carriers that deliver mail to millions of families that are considered to be living in rural settings; this costs the postal Service 858 million dollars a year. This is a fairly easy problem to fix considering how much money is being lost. It was proposed that money loss could be significantly cut down if the Postal Service corrected the following problems. The rural mail carriers were assigned a certain amount of time to deliver to a specific rural area, this method was out of date and because of this the carriers have free time for which they got paid for. The next problem was that other mail routes based pay on how many miles the route covered, so the carriers were getting paid by the mile. With this problem fixed the Postal Service could saved 26.8 million a year. There was also an hourly rate that was in effect which indirectly promoted inefficient service. A stop to this could have saved the Postal Service $255,000 a year. From the numbers mentioned above, it can be seen why the United States Postal Service was losing s

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