Friday, August 26, 2011

Why the USPS Should Be Privatized | Tad DeHaven | Cato Institute: Commentary

Why the USPS Should Be Privatized | Tad DeHaven | Cato Institute: Commentary: "If the USPS were a private business, it might be able adapt to the rapidly changing economic landscape and evolve into a viable commercial entity. But it’s not a private business — it’s a branch of the federal government. As a result, the USPS has been hopelessly hamstrung by constant meddling from politicians, as exemplified by the difficulty the USPS faces when trying to close post offices."

"In 2009, for example, the USPS looked at closing 3,200 post offices. Following a congressional outcry, the number under consideration was reduced to a mere 140. Two years later, only 80 have actually been closed."

"The USPS cannot close a post office “solely for operating at a deficit.” That’s a problem because four out of five post offices are operating at a loss."

"While the USPS is structured like a business — revenues from the sale of postal products are supposed to cover costs and it receives virtually no federal appropriations — Congress prevents it from actually operating like a private business by inhibiting its ability to reduce costs, improve efficiency or innovate."

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