Does the US Postal Service Need 31,322 Post Offices?

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By Douglas A. McIntyre Published
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Does the US Postal Service Need 31,322 Post Offices?

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The United States Postal Service (USPS) is in the fight of its life. It is bleeding money. Congressional Democrats have asked for $10 billion for the next year to keep it as a viable operation to serve Americans as it has for two centuries. President Trump has turned that down. One reason is that he does not want to support vote-by-mail options for the upcoming election. That leaves the USPS in a position where it loses some of its logistics capacity. The only option it has, and one which may come too late, is to save money.

The USPS needs its 496,934 career workers and 136,174 non-career workers, or almost all of them, to deliver and pick up mail and to run the distribution infrastructure. Carriers are at the heart of the operations. The USPS needs the trucks that support delivery. It needs distribution hubs. But does it need 31,322 post office locations to serve 42,000 Zip codes?

The question of the number of post office locations reopens a controversy that goes back years. Some post office locations service tiny towns or areas with very few people. Congress occasionally has considered shuttering some of these. However, no member of Congress wants the shutdowns to be within their districts. Consequently, the battle has gone nowhere.

Some post offices have only a handful of people. Whether closing these will save a lot of money is open to analysis. There is, however, a constant cost to move mail to and from these locations.

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What happens if the number of post offices shrinks? People will have to use their carriers to pick up and deliver mail, which has gone on for years. Can the carriers handle tens of millions of ballots quickly? That is at the heart of the fight between the president and Congress.

If there is no additional money to underwrite the USPS, something will have to give. That something may a number of the 31,322 post offices.
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Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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