Monday, December 5, 2011

Columnist: Privatize the postal service

George F. Will on why the U.S. Postal Service is doomed:
Labor costs are 80 percent of the USPS' costs (53 percent of UPS', 32 percent of FedEx's), in part because it has negotiated very friendly union contracts. The postal service did that because it is free from the tiresome need to make a profit and its competition is limited by law, which forbids anyone else to deliver a letter that is not "urgent."

Mail volume has declined 20 percent in five years and the decline probably will accelerate, in spite of the odd USPS ads seeking customers by saying letters "don't get lost in thin air," and "a refrigerator has never been hacked. An online virus has never attacked a corkboard." Surely privatization beats depending on the USPS for delivering the intellectual light that irradiates the republic.
Read the full column at the link below:

Privatize the postal service - pottsmerc.com

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