President Proposes USPS Privatization; PMG Responds

The President’s Task Force on the Postal Service is not due to deliver its report until August 10, but it has tipped its hand that privatization will like be a recommendation in it. This week the White House released a separate report on restructuring the federal government.

And in that report is a proposal to privatize the USPS.

“A privatized Postal Service would have a substantially lower cost structure,” the report states, and “be able to adapt to changing customer needs and make business decisions free from political interference, and have access to private capital markets to fund operational improvements without burdening taxpayers. The private operation would be incentivized to innovate and improve services to Americans in every community … ” (click to read report)

“Like many European nations, the United States could privatize its postal operator while maintaining strong regulatory oversight to ensure fair competition and reasonable prices for customers,” the report states.

PMG Responds

U.S. Postmaster General Megan Brennan issued a response to the report: “The consistent position of the Postal Service has been that our flawed business model is the root cause of our financial instability because it imposes significant costs on us without giving us adequate business flexibility to enable us to pay for them.

“Ultimately, it will be for Congress to decide whether the best path to financial ustainability is to preserve the Postal Service’s status as a government institution focused on our mission of public service, while giving us more authority to meet our responsibilities, or whether a profit-maximizing corporate model is preferable … (click to read more)

USPS Has Considered Privatization

In 2002 as part of its Transformation Plan, the Postal Service detailed the privatization option and what would be required to see it through … (click to read)