U.S. Postal Service Go Bye-Bye?

Yesterday on WBUR Boston's radio show, On Point, hosted by Tom Ashbrook, an interesting discussion took place that raised some thought provoking questions about whether the United States Postal Service is still necessary today. It is unarguable that the U.S. Postal Service was historically responsible for helping to nurture our democracy and circulate information, especially in our nation's early political and cultural histories. However, questions are now being asked whether the federal government ought to be subsidizing or lending to a service that may no longer be of need, particularly with our recent economic woes. With new information and communication technologies such as fax, email and other online documents printable at home or the office, not to mention private competition such as FedEx and UPS, how much do we still need the government to deliver our mail? It seems that the desire to have the Post Office is there, but is the demand?

The USPS has reported losses in the billions since 2007, according to their annual financial reports, and the projections seem to indicate continued shortfalls for 2009 and 2010. Congress is responsible for oversight of the Post Office. According to a new Epoch Times article, the U.S. Postal Service is not a profit-oriented business but acts as a private enterprise, and is technically an independent agency of the government. It is required by Congressional oversight to break even. Since the USPS has not been breaking even, discussions are emerging about the USPS's business model and ability to stay viable. Also, it is worth mentioning that the P.O. is able to barrow from the U.S. Treasury at a discounted rate, does not pay taxes, and is able to attain private property under the government's eminent domain laws.

If you have been into a U.S. Post Office recently, you may have noticed the increasing number of other items available to purchase besides stamps, such as framed art of commemorative stamps, special gift boxes and even beanie babies. In Europe and Japan, according to a guest on Ashbrook's show, A. Lee Fritschler, the post offices there have more governmental and non-governmental functions tied into what they do, such as renewing driver licenses, buying insurance and adding cell phone minutes to name a few examples. However, with so much competition, will U.S. Post Offices have to be mini-marts with Burger Kings inside, with the Post Office buried in the back behind a rack of t-shirts in order to exist? This is a serious question.

In the past the U.S. government subsidized the U.S. Postal Service to keep rates cheap, which has been arguably important to the growth of our democracy. These subsidies made it possible for print media, such as newspapers and magazines, to circulate at rates that were sustainable. For over 100 years the public has been relatively content to subsidize the U.S. Postal Service. However, there are many more options for a person or an organization which wants to circulate information. On Point's host, Tom Ashbrook asked, "Is the central role that the Post Office played still there? Would it leave a void if it wasn't there? Or would it be filled with other options?"

According to another guest on On Point, Richard John, a historian who teaches at Columbia University’s Graduate School of Journalism, "The United States has over half the mail in the world. It's still an enormous institution. The increase has been in advertising circulators and what we used to call 'junk mail' or what he U.S. Postal Service has redefined somewhat artfully as 'standard mail'...we are no longer subsidizing newspapers and magazines to the extent that we once were." And this is partly what has caused the fall of print media. With email and other options, the public seems less willing to pick up the slack. Further, it turns out that tax payers are partly paying for the junk mail they receive. In Europe, junk mail was put to a stop through the postal system. Discussion about the pollution junk mail causes due to trees being cut down, air pollution and fuel usage from delivery of it, and the chemicals used to make it were all reasons the European post offices were disrupted by legislation from distributing it. Richard John claims if U.S. taxpayers were more aware that their tax dollars are being spent on helping them receive junk mail, they'd be outraged.

Personally, I use the USPS quite a bit. I send all of my packages through the Post Office. They seem to me to be reliable as can be. I have never heard that anyone did not receive mail I have sent them. I don't feel the same about fax. I always wonder if my fax went through. Further, if you've ever sent a package or letter while overseas, did you worry if it would get there? I can attest that I have worried. Most people do not worry about that in the U.S. because the USPS is so reliable. Wedding invitations through email or Facebook would not be the same, but I suppose they could be sent via FedEx or UPS. For some reason I am nostalgic about the USPS. I would feel as though life had really changed if it were to go away. The history of the early circulation of information and our democratic society would seem to not be a part of my daily life anymore. However, if maintaining the USPS is causing me to have to pay for junk mail I don't want and is also terrible for the environment, then I'm not for that. On the other hand, the USPS has about 600,000 employees (not to mention retirees) according to the Bureau of Labor Statistics.

What would happen to the shipping rates in the USPS were to vanish? Would they skyrocket? I don't know. The bottom line of a business is to make money. It seems that if FedEx or UPS wasn't making enough money in rural areas, they could easily stop service there. What would people in rural areas do to receive packages and other hard copy materials if a FedEx and UPS feel they are not enough making money in those areas? At least the USPS is mandated to provide service with regulations that require service in certain areas, including rural areas.

What do you think? Please join in and share your thoughts.

Listen to the On Point broadcast of the Fate of the Post Office:
http://www.onpointradio.org/2009/08/the-fate-of-the-post-office