USPS proposed rate increase illegal?!

The USPS is a mess. I've blogged about that repeatedly. It's a government-sanctioned monopoly with inefficiency that results in taxpayer subsidies-- and will eventually, sack it or change it dramatically.

Here's Max Heath in the C-J with a different angle on the most recent rate hike proposal...

I serve as [the National Newspaper Association's] long-time Postal Committee chairman. That's why I want to respond on behalf of them and other mailing industries in Kentucky to the recent opinion piece printed in many state newspapers by Ellen Williams of Kentucky, member of the United States Postal Service (USPS) Board of Governors....

We understand that the USPS is facing a decline in mail volume and revenue, but the Postal Service cannot plan its recovery on the backs of customers. We can't afford it, and it will only increase the downward spiral in postal revenue.

In 2006, Congress passed a law that prohibited the Postal Service from raising postage prices greater than the rate of inflation. The law has sound reasoning. The Postal Service is no longer allowed to raise rates to make up lost revenue or to cover its inability to manage costs. The goal of the law was to force USPS to manage its workforce well, control costs and improve its business through innovation and new products....

Rather than tackle the hard issues, USPS took the easier route and let existing contracts push up costs. Rather than renegotiating with its workers, it is looking for a quick fix. Other industries have addressed their problems jointly as management and labor, knowing that sustainable jobs are possible only when the business is sound....

Once USPS “busts” the legislated rate cap, it will be gone forever, and USPS can return to business as usual with price increases that further lower mail volume. Then USPS jobs will be even more at risk than they are now....