In this issue of Math in the News we look at the financial troubles at the U.S. Postal Service. Analysis of financial data from the USPS paints a stark picture of its future. For more media resources go to http://www.media4math.com.

1. 9/5/11

2. U.S. Postal Service The U.S. Postal service, originally called the Post Office Department, was formed in 1775. The history of U.S. Postal Service is, in many way, the history of the U.S. itself. That a postmaster General be appointed for the United Colonies, who shall hold his office at Philadelphia, and shall be allowed a salary of 1000 dollars per an: for himself, and 340 dollars per an: for a secretary and Comptroller, with power to appoint such, and so many deputies as to him may seem proper and necessary. That a line of posts be appointed under the direction of the Postmaster general, from Falmouth in New England to Savannah in Georgia, with as many cross posts as he shall think fit

3. U.S. Postal Service Some very famous Americans have been involved in the U.S. Postal Service.

4. U.S. Postal Service As the U.S. population has grown, so has the amount of mail generated. This table summarizes the amount of mail handled over the last century.

5. U.S. Postal Service Here is the graph of the data, which overall shows strong, steady growth.

6. U.S. Postal Service However, if we focus in on the last thirty years, you can see some flattening in the graph since 2000.

7. U.S. Postal Service This table shows the Operating Revenue and Operating Expenses over the last century.

8. U.S. Postal Service Here is the graph of the data. Note that throughout the last century, income barely outpaced expenses.

9. U.S. Postal Service To see this more clearly, here is a graph of the difference between Revenue and Expenses for the same period. Note that over the past 30 years, the U.S. Postal Service has shown a profit, though a declining one.

10. U.S. Postal Service Since the 1990’s, when e-mail use began to dramatically increase, the U.S. Postal Service has been profitable, unlike its prior history. But this era of profitability has been temporary.

11. U.S. Postal Service Notice that since 2006, expenses have overtaken expenses at an accelerating pace. Not only that, revenue has continued to slip.

12. U.S. Postal Service Why has revenue declined? The overwhelming reason is because of a dramatic drop in the number of pieces of mail sent. During a five-year period over 41 billion fewer pieces of mail were sent out!

13. U.S. Postal Service Think of reasons why there would have been such a huge drop in mail during this period.

14. U.S. Postal Service During the same period, expenses dramatically increased, even while revenue was declining.

15. U.S. Postal Service One way that the U.S. Postal Service has tried to control costs is to reduce the number of employees. Note the dramatic drop in employees during this 5- year period.

16. U.S. Postal Service Over the next few years, many post offices around the country will close, as another way to control costs. But the challenges the U.S. Postal Service faces are huge.