Should USPS be Privatized?

The US Postal Service (USPS) as described by Phd Dissertation helpers is among the major federal government-run enterprises. It has been a monopoly preventing competition in the postal industry. The rise of electronic communication has plunged the volumes of mail transmitted through USPS, affecting its service delivery. Other nations facing the decline in the volume of mail have privatized mailing services, creating room for competition. Therefore, there has been a conversation urging the US government to follow suit so that it can adapt to modern technology changes. When applying the basic economic logic to evaluate the need for privatizing USPS, the mailing company should be privatized to become economically viable. Get in touch with Pay someone to write your dissertation paper.

The USPS has received many benefits from the federal government, including tax exemptions and subsidized loans from the treasury but still struggles to make a profit. The cooperation has borrowed over $15 billion from the treasury at a low-interest rate. It is also exempted from various taxes and fees, granting it a competitive advantage over other companies. Besides, it has used its government regulatory power to impede its competitors. However, despite all these advantages, it has been unable to cope with technological advancement (dissertation helpers, 2016). Despite the numerous advantages and subsidies, the organization has lost over $50 billion from 2007 to 2016 and will continue to suffer more unless major reforms are made. It has continued to make losses, raising uproar among economists who see it as a liability to the country. 

The USPS has a costly union workforce, continually making its operations substantially higher than the competitors. The management cannot make cost-saving reforms due to the set collective bargaining agreements (Edwards, 2016). The union has also resisted automation due to fear of job loss. Since technological advancement will continue evolving, USPS must embrace technology or become redundant. While most EU countries have recognized these realities and adopted changes, the US has not. The government is urged to privatize the postal service to increase competition and efficiency.  

The opponents of privatizing USPS cite public mandate and consumer interest as reasons why the mailing service should not be privatized. The Postal Service Act of 1792 states that the postal service intends to benefit the public good (Sherman, 2022). Every person is entitled to a postal service delivered to a residence. The private companies lean on USPS for delivery due to its value of public service over profit. They consider fixed prices very expensive. Consumer interests guarantee affordable access to mail service no matter where someone lives. Although these mandates protect the consumer, the organization has proved not economically viable. Privatizing it would make it more profitable. 

There have been mixed reactions over the topic of privatizing USPS. Due to technological advancement and increased internet connectivity, the demand for physical mail has declined, leading to decreased operations. Despite the numerous federal government efforts to reinstate the company, it has continuously made losses. Other countries worldwide have accepted the reality and privatized their mailing companies or allowed other operators to venture into the mailing business to increase competition and enhance service delivery. USPS should also follow suit. 

References

Edwards, C. (2016). Privatizing the U.S. Postal Service. Cato.org. Retrieved March 19, 2023, from https://www.cato.org/tax-budget-bulletin/privatizing-us-postal-service