Three Big USPS MYTHS:
Myth 1: The USPS' losses show that it's not a viable business
Myth 2. Everyone knows that snail mail is dead, so USPS can't survive
Myth 3. Privatized mail delivery would be cheaper and more effective
Foolish bottom line
If capitalism is about delivering the best goods and services at the cheapest prices -- and not about plutocrats wringing profits from the rest of us -- then why is the USPS being forced to slowly kill itself?
The privatization of public assets is something we've seen over and over and it rarely, if ever, works for the public. The example of Chicago parking meters is just repeated time and again. With a strong profit motive, private companies are highly incentivized to cut service to the bone and raise revenues as fast as possible. That's not in the interest of good public service, where the origins of the post office are.
Congress created the post office as a cabinet-level office in 1792 under specific Constitutional authority. In the past, its expansion into other services was seen as desirable, for instance in banking, when Congress formed the Postal Savings System. From 1911 to 1967, citizens deposited money at the post office and received interest. In 1970, the post office became the quasi-independent U.S. Postal Service. This move was significant, since USPS became a legal monopoly and forced it to operate without subsidies (good!), which were 25% of the 1971 budget. It also allowed the USPS to act more business-like, to borrow and invest.
But now especially, Congress, backed by big money sponsors, refuses to let the USPS act as a business. There's no reason, apart from political will, that reasonable changes -- yes, including modest price increases -- couldn't sustain a public postal system even with its significant challenges.
So the next time you hear about the postal service losing billions of dollars or being unable to compete, remember that it doesn't have to be this way.
More:
How the Postal Service Is Being Gutted
That article sums it up nicely.
