Federal government should not be involved with post office

I really wish that President Obama would have not had the federal government buy up General Motors. We need to keep the federal government out of the private market as much as possible. This goes for the post office too. It should be in private hands.

Senators voted recently to hold off closing some post offices but I wish we had radical changes being voted on.

Postal Problems: the Role of Government Micromanagement

Posted by Tad DeHaven

Postal expert Michael Schuyler has released a follow-up to his January paper that compared the recent financial performance of the U.S. Postal Service to foreign postal service providers. Not surprisingly, the USPS has fared relatively poorly in comparison to its foreign counterparts. In his new paper, Schuyler looks at the role government micromanagement plays and finds that “Foreign posts have much more flexibility than USPS to adjust operations to keep costs in line with revenue.”

The following are some key points:

  • Foreign governments intervene in their postal markets, but “foreign governments often temper their demands and grant their postal services substantial operational discretion, in order that they not undermine their posts’ financial viability.”
  • The USPS has reduced headcount by 29 percent since 1999, but in comparison to foreign operators, it has less flexibility when it comes to managing labor costs. For instance, “there have been few layoffs because contracts with postal unions contain no-layoff provisions that protect the jobs of most career postal workers…Although the reduction the Service accomplished through attrition and buyouts has been skillful, it has not been sufficient to bring the workforce into balance with reduced mail volume.”
  • While many foreign operators have moved to five-day mail delivery, Congress continues to insist that the USPS deliver mail six days a week. Given the continuing – and permanent – decline in the demand for mail, the case for cutting back on delivery is getting stronger. Regardless of whether the USPS should move to five day delivery, the “requirement shows how the U.S. Postal Service is hamstrung in its ability to rein in costs through operational adjustments, compared to many foreign posts.”
  • Congressional meddling makes it harder for the USPS to downsize its retail network to better reflect financial reality. When the USPS tries to close post offices and other facilities, “members of Congress often object vigorously to proposed closings within their jurisdictions and occasionally threaten to introduce legislation to block proposed changes.” As a result, the USPS usually backs down.

I’ll conclude by making my standard pitch for liberalization of the U.S. postal market, which would ideally lead to privatization of the USPS. The word “privatization” scares a lot of people, but it shouldn’t. If one were to spend a couple of years working in the U.S. Senate, as I have, there’s a good chance that he or she will conclude that continuing to allow 535 politicians to manage a business is a whole lot scarier.

 
Related posts:

Private entrepreneurs can solve our post office problem

When you look at how good the private enterprise does with deliveries and then compare it to how bad the federal government does with the same duties it is laughable. The answer to the federal post office problem is to encourage private entrepreneurs to fill the gap and provide competition for the post office in […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 131)

Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to do so in the future. On May 11, 2011,  I emailed to […]

Privatize the post office

The Arkansas Times rightly jumped on Republicans for whining about the local post office branches that were closing.  (It is sad to me that Republican Presidential Candidates are not very brave about offering any spending cuts.) The real answer is privatizing the post office. Here is a good article from the Cato Institute:   The USPS […]

We need to close U.S.Post Office

We need to close U.S.Post Office There is only one option in my view. We can not keep on losing money every year like the U.S.Postal Service (7 billion this year). Closing Post Offices   PrintThe U.S. Postal Service just posted a $3.1 billion loss for the third quarter and the outlook for the rest […]

 

Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: