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9 Responses to "Have a Happy New Year: privatize @USPS"

Drew the Infidel says:

December 31, 2013 at 9:41 pm

As hard as it may be to believe, these gumballs are in the midst of a hiring campaign. Maybe with that sort of financial acumen, they can find the wherewithal to sponsor a college bowl game also. You know, the same way flat broke GMAC did in the midst of their government bailout. And all at taxpayer expense.
Carlos says:

December 31, 2013 at 10:34 pm

And with the Turkey-in-Chief we have, the proverbial snowball has a better chance of staying frozen than we have of getting rid of the USPS and its unions.
Dan says:

December 31, 2013 at 11:35 pm

My regular mailman is awesome. His sub is the one I always fear.
Mike says:

January 2, 2014 at 10:09 am

Probably worth noting that the USPS is already privatized … meaning your tax dollars don’t go to support it. You probably also saw the hubbub about Fedex and UPS having shipping problems at Christmas time as well (http://abclocal.go.com/wabc/story?section=news/national_world&id=9372046).

There is no question USPS has lots of challenges … competition, huge infrastructure, rising expenses, a dwindling market, but it was the change in the way benefits costs were allocated (http://www.cnbc.com/id/45018432) that really created the huge challenge for them.

Still, at 49 cents (the price of a stamp is going up by 3 cents on 1/26/14 but you can save 3 cents a pop if you buy your Forever stamps now; heck of a deal :-) it is still amazingly cheap to be able to send a letter anywhere in the country.

Sorry you didn’t get your package for Christmas. That does suck.
Phineas says:

January 2, 2014 at 12:41 pm

Hi Mike,

We evidently have different definitions of “privatization.” From the Cato report:

The U.S. Postal Service is a branch of the federal government. It is headed by a Postmaster General and a Board of Governors, with further oversight provided by the Postal Regulatory Commission. However, ultimate authority over the USPS rests with Congress.

The USPS is structured like a business in that revenues from the sale of postal products generally cover costs, and it receives virtually no federal appropriations. The organization is the second-largest civilian employer in the United States—after Wal-Mart—with about 600,000 workers. If the USPS were a private company, it would rank about 28th on the Fortune 500 list of largest companies.

While the USPS is structured like a business, Congress often prevents it from actually operating like a private company, such as taking actions to reduce costs, improve efficiency, or innovate in other ways. The agency is also obligated by statute to provide mail services to all Americans, irrespective of where they live and the cost of serving them. Furthermore, it is required to deliver first-class mail at a uniform price throughout the nation.

While Congress imposes various costs and obligations on the USPS, it also protects it from competition. The USPS has a legal monopoly over first-class mail and standard mail (formerly called third-class mail). Thus, we have a postal system that encourages high costs and inefficiency, while preventing entrepreneurs from trying to improve postal services for Americans.

So, while it receives few taxpayer dollars, it is still bound by the rules Congress sets for it, significant portions of its business are not subject to competition, and it does not have the freedom of action of a private company. I’d hardly call that “privatized,” would you?

As for Fedex and UPS, yep, they screwed up. And they’re answerable to their clients and owners for it, as is Amazon, one of their biggest clients. Which is why Amazon and UPS are offering refunds on the shipping charges to people whose package deliveries were screwed up.

How is USPS accountable? I filed a complaint through their web site, and I’m still waiting for a reply, five days later. Amazon answered my query within 12 hours on the 28th.

Oh, wait. I did hear from USPS: I received an email Tuesday asking me to take a survey to tell them what I thought of their customer service page. You can imagine how I filled that out.

Sorry you didn’t get your package for Christmas. That does suck.

I appreciate it, but it wasn’t a “Christmas package.” As I wrote, it was an order I placed for myself on Christmas, with delivery promised for the 28th. After the rush.
Carlos says:

January 2, 2014 at 12:53 pm

How is the USPS “privatized” when Congress has to bail them out every year? They’re even less “privatized” than GUM (Government/Union Motors) and Chrysler, neither of which will ever pay back the tax dollars poured into them to save their precious unions while stealing all the legitimate money investors had laid out.

Either they are a “private” business or they aren’t. And with Congress’ ability to run it (see all the money-squandering offices demanded to be kept open), I would hardly say it has been “privatized,” Mike.
Mike says:

January 2, 2014 at 4:55 pm

Phineas … I figured that would be your response.
Carlos … Except Congress doesn’t bail out the USPS.

My core point was that the USPS is not supported by your taxes. This seems to be a point that USPS haters regularly ignore or mis-state.

For the rest I’d generally agree the the USPS would do much better if not for the clueless intrusion / direction of Congress. But then, wouldn’t we all.
Carlos says:

January 2, 2014 at 7:50 pm

@Mike: Then why does the USPS yearly go to Congress with hat in hand asking for more money to make up for the ocean of red ink they annually run? And that has happened every year since I started paying a little bit of attention back in the seventies.
Mike says:

January 2, 2014 at 8:16 pm

Carlos … because they need Congressional approval to raise the cost of a stamp (or make other changes to their business model). Interesting trivia that in 1976 a stamp cost 13 cents and a snickers bar cost 15 cents. Today 46 cents will get you a stamp. A snickers bar will set you back about a buck.

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