As the United States Postal Service prepares to discontinue Saturday first-class mail delivery, an economics professor at the University of Illinois says he doubts it will really save much money.
“Most consumers don’t care about ending the Saturday services, so it’s not going to change anything,” says associate professor Seung-Hyun Hong. “But the problem is one of the revenues is coming from the consumer but the other, the important part of the revenue, is coming from part of the standard mail. Which basically means junk mail from businesses,” Hong said.
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The postal services has cut staffing and raised prices on stamps to stay afloat, but Hong says it won’t help much because of The Postal Accountability and Enhancement Act of 2006.
“The act requires the postal service to make an annual payment of $5.5 billion, from 2007 to 2016, to pre-fund the retiree health benefits,” Hong said
The change to Saturday delivery won’t take effect until Aug. 10.