Sunday, February 22, 2009

Going Postal

I have always been fond of the USPS. It’s romantic tales of the Pony Express, the anticipation of the postman arriving with news from loved ones and the world. Their matching rain cloud blue uniforms that give them a military look and me a sense of security.

Although I am more realistic now I still recall the USPS in their heyday, before the World Wide Web. In those days every citizen watched out for the mailman, it was a high point in many people’s day to receive the mail. Now we get bills and junk advertisements. Some of us don’t even get bills, they come over the net and even hard copy greeting cards are becoming a rarity, unless they’re sent by grandma.

As less mail goes through the USPS system the higher the cost of postage must become because the USPS has the same overhead expense whether they deliver one or two letters to your door. The higher the postage becomes the more people switch to cheaper, electronic methods of delivery. This whole affair is a colossal catch-22. A real no win situation.

The USPS has a growing overhead and dwindling client base. I’m not that sure I can blame the whole thing on bureaucracy. Although it is true that normal bureaucratic bumbling and various fiefdoms ruled by control freak postal princes cause excess expenses are factors, this would not make a difference in the USPS’s eventual demise. The normal squabbling and mismanagement will only serve to hasten the dinosaur’s collapse.

The traditional fixes for our post system are to raise rates and/or increase the federal subsidy. These historic band aids can no longer keep the dinosaur on life support. As stated it’s a catch-22. As the post office gets closer to a gigantic, undeniable point of diminishing returns and raises rates yet again private enterprise will step in and take over all the gravy routes. Unlike the USPS they can pick and choose their customers; the USPS is obligated to deliver to everyone. Thus the only deliveries left to the USPS will be to lone farm houses and a few mountain hermits. Laws taxing firms like UPS and FedEx on their deliveries could help the USPS maintain some kind of competiveness but that won’t happen; thats against the rules, we are capitalists. Or the federal government could increase its subsidy to 95% thereby making sure USPS is solvent and the hermits get their mail. That seems an absurd remedy, paying mega bucks for mini bucks worth of service. But you never know, this is the federal government we’re talking about and you can bet your booty that every person of royalty in the USPS will dig in their heels and resist any reduction of their fiefdom budgets.

So what can, should we do? Well, I for one intend to pop some corn and watch the action. It’s going to be a criminal comedy of bureaucratic tug-a-wars and vultures picking apart a mammoth entity. I think I’ll bring my sleeping bag; it’s going to be a long show.

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