Posted on 07/14/2003 9:21:52 AM PDT by Constitutionalist Conservative
The commission President Bush established to analyze the workings of the U.S. Postal Service will issue its recommendations for reform on July 31. This is the first such presidential commission since the Johnson administration, and it is long overdue. The need for reform is critical because the Postal Service's revenue base is eroding rapidly; the institution is a train wreck waiting to happen.
Last year, for the first time in recent history, the volume of first-class mail—which constitutes more than 57 percent of the Postal Service's revenue—actually declined. Standard mail dropped even more precipitously. Not surprisingly, the Postal Service's financial condition has suffered. Its net loss in 2002 was $700 million, on top of a $1.7 billion loss in 2001.
The Postal Service needs to undergo a major restructuring. If such restructuring is not implemented, the system will become more dysfunctional and more difficult to overhaul in the future. The president's commission enjoys the rare opportunity to save the Postal Service before it implodes.
Increasing rates will not solve the problem but rather encourage the use of substitutes for mail, such as e-mail, phones, and faxes. Nor is enhanced commercial freedom for the Postal Service a viable alternative, as such freedom would only encourage it to push its monopoly power, tax-exempt status, and other government-granted privileges into competitive markets, thus unfairly competing with private rivals.
More fundamental change is needed. Fortunately, many countries have undertaken postal reform, providing valuable guidance for the United States. Those initiatives suggest that three key changes are required for successful reform: (1)limitations on or elimination of the postal monopoly, (2)full-scale privatization, or (3)both.
Many countries have limited or eliminated their postal monopolies, creating substantial benefits for consumers and simultaneously improving the performance of their postal services. New Zealand, for example, eliminated its postal monopoly in 1998, allowing full competition for letter delivery. As a result, New Zealand Post has reduced its basic stamp price and maintained profitability. Australia limited its letter delivery monopoly in 1989. Its basic postage rate has remained the same for more than eight years. Australia Post has earned profits for more than a decade, and on-time delivery has increased.
The main argument against repealing the postal monopoly is that service to rural customers will somehow suffer, but neither New Zealand nor Australia has experienced problems with rural delivery. Numerous other countries have limited their postal monopolies, yielding similar benefits.
Other countries have undertaken privatization. Germany's Deutsche Post has had several successful public offerings (but remains primarily government owned). The post office in Holland, TPG, is now a predominantly privately owned, publicly traded company. The effects in both countries have been positive. Because there is an explicit group to which they are accountable, both companies are more innovative, competing aggressively for business and offering their customers new products and services.
No entity would benefit more from repeal of its monopoly than the U.S. Postal Service itself. Combined with government ownership, its monopoly status eliminates its incentive to improve its service and opens it up to political interference. Unless its structure is changed, it is unlikely that the Postal Service will evolve on its own. The president's commission has the opportunity to make that happen.
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Constituiton of the United States of America, Article I, Section 8
(powers of Congress)
"To establish Post Offices and post Roads;"
Amazingly, it's one of the few things the fedgov does that is constitutionally authorized. The compelling reasons for government control that existed 200 years ago no longer exist.
Memo to Congress:
There is an important corollary to the principle that you may do only what the Constitution permits you to do. To wit: Even if the Constitution says you may do something, it does not necessarily follow that you should do that thing.
Maybe, but... What kind of business model says that when revenue declines, raise the price of your services? That only works in a monopoly business model, doesn't it? Who knows how good the service might be if there was no monopoly?
Then who would sponsor the professional bike team? http://www.uspsprocycling.com/
I know alot of government employees do very little and get paid alot. Normally, I would recommend for any corp. or company, whose business has dropped dramatically, to get rid of it's excess employees. My son has been working for the Postal Service for about 2 years. He walks 10 miles a day delivering mail. His pay is fair. His benefits are great. He does work his a$$ off, though.
Most postal workers in this area have had their routes expanded to the point they work a full day delivering mail, which they should work a full day.
My mail isn't delivered ,until after 4PM. On Mondays, as late as 6PM.
You already have the personal power to do that for yourself.
Take down your mailbox and never mail anything.
The Postal Service is NOT supported by tax,
so it would no longer effect you at all.
See how easy it is?
You are right regarding the parcel business, but the USPS does have a legal monopoly on delivery of first class mail. Why does the fedgov consider this necessary?
Nor do I have any say on the USPS laoding "their/my" Po box w/junk mail, not wanted by me, and millions of other folks, nor even addressed to me--just imposed on me.
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