talk of privatizing the usps, yea/nay? Best Fix for Postal Service Is to Take It Private

...Obviously, the USPS needs major restructuring, and as we have noted before, even the Senate bill is no panacea for the organization’s many problems. The USPS could probably survive and even thrive on its own if allowed to go private; on the other hand it could continue to operate as a public utility if Congress were willing to kick in enough money.
What Congress wants to do is split the difference: interfere and micromanage with the USPS so that no management team could make the system work, while keeping it on a short budgetary leash. It’s not surprising that Congress doesn’t want to let go; the Postal Service is the oldest pork barrel project the federal government still runs. In the 18th and 19th centuries, the Post Office was the federal patronage office and political careers rose and fell based on fights to control postmaster nominations in various cities and towns. The Postmaster General was a more powerful federal official than just about anyone else; for most Americans, their local postal clerks might be the only federal officials they ever met.
In the old days, the postal service’s monopoly on mail delivery generated enough revenue to pay for the patronage and the waste. Now, with email and text messages replacing first class mail and powerful, greedy junk mail lobbies determined to keep junk mail cheap for advertisers, there isn’t enough money anymore.
Congress’ pathetic inability to manage the Postal Service won’t sink the republic, but the ineptitude and selfishness on display in the process just might. If Congress approaches the “fiscal cliff” it has set up for the end of this year with no more statesmanship and wisdom than it has exhibited in the USPS matter, the United States will be headed for the biggest man-made financial disaster in its history.

http://www.thebhc.org/publication...-p0148.pdf

Read up.

As I've read, the Post Office leadership would like to reform. They realize times have changed. Idea have been submitted for approval. The problem is our politicians want to micromanage. The Post Office remains a good source for pork spending. They don't want to see change.

"USPS Takes Another Slide"

http://blogs.the-american-interes...her-slide/

snippet:

As I've read, the Post Office leadership would like to reform. They realize times have changed. Idea have been submitted for approval. The problem is our politicians want to micromanage. The Post Office remains a good source for pork spending. They don't want to see change.

"USPS Takes Another Slide"

http://blogs.the-american-interes...her-slide/

snippet:

It has forecast it will lose $9.1 billion in the 12 months ending Sept. 30, not including the $5.5 billion payment.

The Service has long struggled to reduce costs and
increase its productivity. Adding to the difficulty of this
task, the Service has experienced rising infrastructure
costs of adding delivery routes and continued growth in
total mail volume. Further, in 1998, the Service declared
a moratorium on closing post offices and by law is not
allowed to close small post offices solely for operating
at a deficit. The Service has recognized that it needs
aggressive cost management and anticipates the need
for a “structural transformation” that is to include,
among other things, achieving “breakthrough”
productivity savings of $1 billion annually. To help
achieve productivity gains, the Service plans continued
capital investments of over $17 billion over the next
5 years in automation, modernization, and information
technology. The Service also plans to standardize and
improve work processes to reduce significant variations
in quality, productivity, and costs across the system. The
Service made some progress in fiscal year 2000 in
controlling costs through reducing the number of
workhours by 0.6 percent, which was the first such
reduction since fiscal year 1992. The Service plans to
further reduce workhours by 1.5 percent in fiscal year
2001.

However, as the Service has recognized, some
employee-related expenses will be difficult to control.
The Postal Service’s retirement-related and workers
compensation expenses have increased in recent years,
and these trends are expected to continue (see fig. 3).
According to the Service, its retirement expenses are
estimated to increase by $554 million in fiscal year 2001
to $9.1 billion and are projected to reach $14.0 billion in
fiscal year 2010. In addition to these costs, the Service
has estimated that its retiree health benefit premiums
will increase by $114 million in fiscal year 2001 to
$858 million, and the Service has projected that these
premiums will reach about $2.0 billion in fiscal year
2010.

Operationally the USPS makes a nice profit each and every year. The ridiculous mandate in 2006 that they make a $5.5 billion payment each year for 10 years to prefund health care costs for the next 75 years is what is killing them right now. I know of no other business on the planet that is required to pay for healthcare costs for employees that are not even born yet. Got to love the thinking behind that bill!

However, the trend of declining mail is certainly not in their favor and of course congress forbids them from raising prices beyond the CPI. Streamlining, downsizing and more flexibility on prices would be smart, but full blown privatization would mean the end of cheap mail for all. The USA does not have a good track record at making smart choices, so most likely congress will just run the business into the ground.

Short, to the point and well stated! That should be the opener for any discussion/argument on the USPS.