US Postal Service Privatization: The Dark Side

On the surface, the rationale about efficiency makes sense. “To become efficient and self-sustaining, the Postal Service should be separated from government,” R. Richard Geddes, visiting scholar from the American Enterprise Institute AEI, said before the U.S. Senate Committee on Homeland Security recently. While a privatization would take a huge problem off the hands of the Federal government, the private sector too has large interests at stake. This includes the main competitors like United Parcel Service Inc. UPS, Federal Express Corp., and Pitney Bowes Inc. A leaner USPS could take some business away from FedEx and UPS or, alternatively, the private companies could take over business segments or other assets from USPS.But given the recent bad financial performance, USPS would have a difficult time making it to the stock market. So why the push for privatization?

via US Postal Service Privatization: The Dark Side.


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