(Via the Drudge Report)
"...liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate… it will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people."
Thus did Andrew W. Mellon exhort President Herbert Hoover at the beginning of the Great Depression. These days, we see the same situation--we have been living far to high for far too long and the debts have piled up until we are all under water.
The US Postal (Dis)Service is a great case in point. Their business is slowly shrinking to some small fraction of what it once was. The Intertubz and fax machines are eating their lunch, and justifiably so--they provide the equivalent service faster and at a fraction of the cost. Yet the USPS is stuck in a business model from the early 1900s, with high labor costs and a government mandate to supply services to areas that can never be profitable.
Now, they want Congress to bail them out (once more). And believe it or not, I'm in favor of that, as long as the bailout is allowing them to right-size their business, renegotiate (or arbitrarily change, if the unions won't go along) their labor contracts and start acting like a business that has to make a profit (Constitutional mandate or not).
They just don't get one dollar of tax-payer money. Feel free to raise rates though, if you think the market will support it.