Friday, 25 March 2011 17:05

U.S. Postal Service’s Eagle Crashes, Privatization Needed

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Jeff CrouereWith the trend toward sending more and more correspondence via email and with text messaging so popular, fewer people are actually using the old fashioned “snail” mail. Every day more people sign up for online bill paying, forgoing the expensive and time consuming methods of mailing checks to vendors.

Tags: U.S. postal service, privatization, layoffs, job loss, Saturday delivery, post offices, Federal Express,  U.P.S., email, privatize, private sector, U.S. budget, mail, U.S. mail

All of these trends have devastated the U.S. Postal Service, and the result has been horrific losses. The U.S.P.S. is too top heavy with bureaucrats, so yesterday it announced layoffs and offers of buyoffs for top executives. A so-called reorganization plan will eliminate 7,500 positions, reduce the number of administrative offices and drop Saturday delivery.

Eventually, 2,000 post offices will be closed all across the country. As a result, postal service customers can expect their mail delivery to be delayed by up to two days. This reduction in performance will only drive more customers away from the U.S.P.S. and create even more losses. Last year, the postal service lost over $8 billion and billions in losses are expected this year.

The bureaucracy is doomed to failure because the days of mailing items are long gone. The overnight package business is now very competitive and the U.S.P.S. has been unable to take customers away from Federal Express and U.P.S.

The only answer for the postal service is complete privatization. A private company should be allowed to make necessary cutbacks to make the entity efficient. A leaner organization could then offer the boutique services that might appeal to people who actually want to send letters and packages via traditional mail services.

If the postal service is not privatized, there will be a series of never ending rate increases, layoffs and reductions in services. Customers should expect to see not only Saturday delivery curtailed, but other days of the week. There will also be more post offices closed.

Government can never deliver any services as efficiently as the private sector and the postal service is a perfect example. Over the years, the postal service became overwhelmed by highly paid bureaucrats and dominated by costly unions. This type of model has never worked well, but in today’s environment, it is nothing less than a disaster.

The Congress should put this entity out of its misery and privatize the entire operation. Taxpayers should not be forced to bailout another inefficient government enterprise that is not able to compete in the 21st century.
Jeff Crouere is a native of New Orleans, LA and he is the host of a Louisiana based program, “Ringside Politics,” which airs at 7:30 p.m. Fri. and 10:00 p.m. Sun. on WLAE-TV 32, a PBS station, and 7 till 11 a.m.weekdays on WGSO 990 AM in New Orleans and the Northshore. For more information, visit his web site at E-mail him at [email protected].


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