We Already Run the Post Office Like a Business

Published: Monday, May 19, 2025 at 7:25 pm

The U.S. Postal Service (USPS) faces renewed calls for privatization, fueled by persistent financial losses and the argument that private companies are more efficient. However, this overlooks the fundamental role of the USPS as a public service with a universal service mandate. Unlike private entities, the USPS is legally obligated to deliver mail and packages to every address in the country, including remote and unprofitable areas. This universal service obligation, coupled with mandated low prices, inherently creates financial challenges.

The argument for privatization often centers on the USPS's financial deficits. However, these deficits are largely attributable to artificial constraints imposed by Congress, such as the requirement to prefund employee retirement benefits, a burden not shared by private competitors. Furthermore, the USPS is restricted from entering new markets beyond physical delivery, limiting its ability to generate revenue in the digital age.

Privatization would likely lead to higher prices, reduced service quality, and workforce cuts, particularly impacting rural communities. The USPS already operates as a government-owned corporation, with a board of governors and a postmaster general. The Postal Reorganization Act of 1970 established this structure, aiming to operate the USPS like a business.

The USPS's financial struggles are not solely due to inefficiency. They are the result of legislative mandates and restrictions that hinder its ability to adapt to the changing landscape of communication and commerce. The USPS could potentially expand its services, such as offering postal financial services or secure email, to generate revenue and better serve the public.

The push for privatization is often driven by those who seek to dismantle public services in favor of private profit. The USPS, as a visible example of a government-owned commercial enterprise, provides an alternative to the private market.

BNN's Perspective: While the USPS faces legitimate financial challenges, privatization is not the answer. Instead, Congress should focus on removing artificial constraints, allowing the USPS to innovate and expand its services. This includes exploring postal banking and allowing the USPS to compete in the digital space. The focus should be on strengthening the USPS as a vital public service, not dismantling it for private gain.

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