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Tuesday, March 15, 2011

Fix The USPS or Privatize It

Every year it seems that the Congress has to appropriate funds for the USPS so they can continue to operate and lose money. Who pays for that? That's right, the tax payers!

The USPS is a "Quasi Government Agency" which means that they get all the benefits of being a government agency, but they have a mandate to make a profit. Well that's really working well! (Not!)

The USPS makes a profit on first class mail and most parcels. Where they lose money is in the sheer volume of third class mail for which they charge a pitifully small amount compared to the other classes of mail. Third class mail is all the endless streams and reams of advertising fliers, brochures, advertisements, etc. that fill your mail box every day even though you never asked for them. Most of the third class mail you receive ends up in the trash, or hopefully in a recycle bin.

It's time that Congress get into the 21st Century with their legislation by either fixing the USPS or privatizing it. The internet, and email marketing have made the need for third class mail totally unnecessary. If we eliminate third class mail the USPS will become profitable thereby reducing waste in government and relieve the burden on tax payers, we will save huge numbers of trees by eliminating the wasted use of paper, and also reduce the massive volume of paper sent to landfills and recycling centers.

Congress is constantly lobbied by marketing and advertising associations to keep the third class mail rate down. Clearly they have been successful, but at the expense of the taxpayers. If Congress can't get out of this expensive rut, the mail system should be privatized so as to create an environment where common sense is mandated by the motivation of profits. Privatizing the delivery of parcel delivery has clearly been successful by notable companies such as UPS, Fed Ex, and others. There is no reason to assume that privatizing first class or third class mail would be any different. Lobbies would no longer influence Congress in these matters, and private (could be public) companies would charge a fair rate for the delivery of all mail. The government could then simply worry about the terms and conditions under which these companies needed to operate. I suspect that, under any circumstances, the companies would operate more efficiently, and not have any need for government subsidies, and thereby relieve the unnecessary burden on tax payers.

Regardless of whether we choose to charge appropriate rates for third class mail in the current system, or whether we choose to privatize, the tax payers will benefit.

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