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Postal Problems: the Role of Government Micromanagement

truckingal Wrote: Apr 06, 2012 11:41 AM
Fourth, both ignore the fact that Universal Service is the biggest, but likely the most beneficial requirement-and relatively expensive in a country of this size. This is the area that no prospective private business even wants to take on. It is also the part of the system providing the most value to the common taxpayer. Doing away with rural service (which is what is ultimately planned) will both destroy what has made this system the best in the world and will reduce volumes to complete unprofitability (see some of the contracted studies USPS does NOT want made public)! And it is this fourth issue that makes USPS a true SERVICE rather than simply another failed business model: this continued service is invaluable to the proper . . .

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...