1 of 8

Write now Article Tools

Page 3 of 4

and raising prices and fees.
An argument against privatizing the postal service is that, as a private business, it could suffer bankruptcy, poor efficiency, poor reliability, and possibly go out of business all together, leaving the country without local mail service. This is highly unlikely to happen, however, due to the nature of private business. Private business thrives on competition, and if the company who bought the postal service could not compete, another company would simply buy the account. The fundamentals of a free economy guarantee the consumer the best possible service or product for the price. Bankruptcy is more likely to occur as the USPS is currently run than it would be under private ownership. Take the ever-increasing price of postage as an example. The USPS is justifying its latest rate increase by complaining about an increased customer base! A privately owned company would be overjoyed at gaining 1.6 million delivery requests a year; it would mean increased revenue and company expansion, but the USPS claims it means a three-cent price increase for every stamp, just to cover costs! Only a government program could twist company growth into revenue loss.

Fears that the post office would become less efficient under private ownership are similarly misplaced. As explained previously, it is the private mail carriers that have the most reliable guarantees and delivery, because they have to compete against other companies for customers. Private companies would not have to take every federal holiday off. Imagine receiving mail on Columbus Day. Most people have to work on these holidays, shouldn't the mail be delivered as well? True efficiency will not be achieved until the mail is guaranteed to run despite presidential birthdays or Hallmark holidays. Moreover, the inefficiency of the current system would be abolished. No private company would fund the waste that the USPS considers to be absolutely necessary. Again, the postage rates increase serves as a good example. In order to implement a rate increase, the USPS must engage a complex, year and a half process.

"The sheer magnitude of the rate process is overwhelming. It took a 2.5 ton truck, filled with over 100,000 pieces of paper, just to file the last case on January 12, 2000. Testimony was submitted by 120 Postal Service and private party witnesses during 40 days of hearings before the independent [Postal Rate Commission]. A total of 78 parties, ranging from loyal customers to tough competitors,

• << previous page
• 1
• 2
• 3
• 4
• next page >>

Add your voice

Know something about Should private companies be allowed to compete with the United States postal service?
We want to hear your view. Write now!