Internet emails have cut into Postal Service profit. Its competitors, FedEx and UPS, have peeled away the prime package delivery business. What does that leave for the United States Postal Service?
“They’re left with that day-to-day carry of all sorts of pieces of mail that tend not to be high value and so they’re reaching a constituency that you can’t get to any other way.”
Dr. Paul Isely is Professor of Economics at the Seidman College of Business at Grand Valley State University.
“One of the reasons the post office has problems is that they have all these restrictions of you have to keep my post office open that goes with all the political side. The operations that they’re doing today they wouldn’t be doing the way they’re doing if it wasn’t for all these political entanglements. And moving past those will result in a leaner, it’s going to look a lot more like industry across the United States, which is doing more with fewer people. It’s going to look a lot more like service that we see around where we have to do more ourselves. And there’s less being done for us. And those are the things that are going to have to happen for us to keep the prices down if we don’t want to subsidize the service.”
It’s stuck with a dysfunctional business model and few options.
“Everyone that’s involved with it knows that and the politicians know that. I think virtually everyone who gets their letters delivered to them knows that the business model is not quite working the way that it is.”
But as we mentioned earlier, it does serve a niche.
“It’s an important niche to fill and it might be worth considering how we would want to subsidize this to keep it in place so that it’s there to service that market.”
Yesterday Biz Journal: Downtown GR to get new apartment, hotel space Grand Rapids MI April 17, 2014 | WGVU Downtown Grand Rapids is getting more hotel and housing space. But as WGVU’s David Moore reports, this project will make use of an existing building, rather than any new construction. ListenDownload Illegal marijuana operation investigation covers West Michigan April 17, 2014 | WGVU A huge government led police investigation has uncovered an illegal marijuana growing operation in West Michigan. WGVUs’ Caroline MacGregor has more. ListenDownload Muskegon Community College plans downtown location April 17, 2014 | WGVU Muskegon Community College (MCC) is working toward completing a renovation and expansion project that includes a downtown Muskegon location. WGVU's Caroline MacGregor has more ListenDownload Legislature begins debate over $500 million road funding plan April 17, 2014 | WGVU State House Speaker Jase Bolger says it’s time for lawmakers to do something about Michigan’s crumbling roads – even if it’s not a full solution.
As Jake Neher reports, Bolger outlined his plan today in front of a state House panel.
ListenDownload Michigan: $600,000 mishandled by funeral director Standish MI April 17, 2014 | AP State Attorney General Bill Schuette says he's brought embezzlement charges against a northern Michigan funeral home operator in connection with mishandled payments for future funerals. Teen faces hearing in mob attack on motorist Detroit MI April 17, 2014 | AP A 16-year-old Detroit boy is due back in juvenile court on assault and ethnic intimidation charges in the brutal beating of a suburban motorist. Man's body found on Lake Michigan beach identified Ludington MI April 17, 2014 | AP The frozen body of a man found on a remote Lake Michigan beach has been identified as a missing Wisconsin resident.
Board seeks return of some duties to Pontiac mayor Pontiac MI April 17, 2014 | AP A board appointed to help guide Pontiac from state oversight to local control wants to transfer budget and some other responsibilities from a city administrator to the mayor. Fermi 2 nuclear plant shuts for fix to transformer Frenchtown Twp MI April 17, 2014 | AP DTE Energy Co. says it's shut down the Fermi 2 nuclear power plant to replace one of the two main transformers. Lawsuit: Wayne State bilked research money from US Detroit MI April 17, 2014 | AP A lawsuit filed by a fired medical school professor says Wayne State University bilked more than $169 million in research grant money from the U.S. government. Police: Man fatally shot at Kalamazoo sports bar Kalamazoo MI April 17, 2014 | AP Police say a 23-year-old man shot to death at a Kalamazoo night spot Dark Sky Park in Michigan getting $7M upgrade Wawatam Twp MI April 17, 2014 | AP Plans call for a $7 million upgrade starting this year at a park on the Straits of Mackinac that's designated as a prime spot for stargazing. Flint plans to start using river water on Monday Flint MI April 17, 2014 | AP Flint's plans to get drinking water from the Flint River instead of the Detroit water department are expected to become reality on Monday. Detroit sees more deals ahead in bankruptcy case Detroit MI April 17, 2014 | AP The city of Detroit is optimistic it will make more deals in the next several days to help emerge from bankruptcy. Snyder: Marquette County getting help after cold Lansing MI April 17, 2014 | AP Gov. Rick Snyder has declared a state of emergency for Marquette County following widespread, severe damage to water and sewer lines caused by this winter's extreme cold. Nonprofit's Detroit demolition work consolidated Detroit MI April 17, 2014 | AP Officials say demolition work of the nonprofit Detroit Blight Authority is being consolidated under city-run efforts to tear down dangerous buildings. Snyder turns in signatures for re-election bid April 17, 2014 | AP Michigan Gov. Rick Snyder has made his re-election bid official by turning in more than 26,000 signatures from all 83 counties to election officials. Dry weather helps Michigan floodwaters recede April 17, 2014 | AP Floodwaters are receding along rivers in Michigan's central and western Lower Peninsula, a trend that should continue with mostly dry weather in the forecast for the next several days. Snyder files for reelection April 17, 2014 | MPRN Governor Rick Snyder has filed 26 thousand petition signatures to put his name on the Republican primary ballot in August, and – if all goes as planned – make him a candidate for reelection in November.
The governor was joined by Michigan First Lady Sue Snyder, Lt. Gov. Brian Calley, and a couple dozen supporters to cart boxes of petitions into the state Bureau of Elections.
Snyder says he intends to run on his record and the state’s improving economy.
“We said we going to do a lot of things, and we did and Michigan’s the comeback state, and we should be proud of that, but what I would say is, let’s build on that,” he said. “Let’s keep going. Let’s go even faster and show an improvement in our economy. More opportunities for people.”
Democrats are trying to make the tax on pension income and school spending campaign issues. Former Congressman Mark Schauer is expected to file petitions tomorrow (Fri.) to appear on the Democratic ballot. No other candidates have filed or announced plans to run in either primary, which would clear the way for Snyder and Schauer to face each other in November.