Three Keys to Successful Postal Reform

Postal reform has to both serve the citizens of the United States both in urban areas and the most rural parts of the Great Plains and Appalachia.  It must also ensure that business customers that now generate 90% of mail volume will continue to see the Postal Service as an attractive delivery service in 5 and ten years.  These four individuals who have limited understanding of the details of the Postal Service’s problems identify three critical elements that have to be part of any postal reform that ensures both universal service and the Postal Service’s survival as a self-sufficient entity. They are:

  1. Profit must be an explicit goal for organization and profit must reflect a sufficient operating margin to ensure cash is generated to make capital investments needed to improve service once the current financial difficulties pass.  There is no excuse for the Postal Service to be the only large national post suffering major losses in the Euro Zone, North America, and Oceana and Australia.
  2. The Postal Service has to be granted significant relief from both Congressional and Postal Regulatory Commission oversight.   To the extent that either law or regulatory precedent freezes the status quo and prevents market-based pricing and market-based service quality that law and those regulations must be removed.  In particular both restrictions on distance based and regional pricing for commercial mailers need to be lifted in order to develop market-based and not cost-based prices.
  3. Transition of the Postal Service to an entity that operates under standard corporate business, employment, and contract law must occur within a reasonable period.  During this period, the privatization of the Postal Service as a public utility providing delivery services must be examined serious.

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