Betsy Mikel asked me why Im so committed to the Post Office on another post here. Its a complex question with a complex answer, so I will try to answer it here, rather than in a series of FB comments there. Replacing retail postal sales with what Staples is offering isnt a solution to what ails the USPS. In fact, USPS is actually profitable, except for the fact that congress has forced it to prepay pension and health care benefits 75 years in advance - in effect funding benefits for employees that havent yet been born. If you remove that requirement, USPS turns a profit of about half a billion dollars quarterly. Privatizing the postal service wont lead to better or cheaper service, but it will lead to less accountability and higher prices. In nearly every instance globally postal privatization has led to the same set of problems: reduced access to products and service, lower quality delivery service and higher prices. The national logistical system that USPS has in place is incredibly efficient and cost effective. Its so valuable economically, in fact, that its been crucial to the success of several significant businesses in the US, including Amazon, Netflix and the current subscription box fad. Making sure the Postal Service is continues to be something that all Americans have access to and can benefit from is imminently doable, but privatizing it is guaranteed to ensure its demise. Staples wouldnt be eager to do this if it wasnt profitable. They have no magic corporate formula to efficiency that USPS lacks. Theyre simply going to pay people less, and have fewer locations. Staples will pocket the savings and leave regular customers like you and I to pick up the costs.
Posted on: Fri, 22 Aug 2014 14:47:49 +0000