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Reason Foundation

News Flash: Postal Service Not Viable Business

Samuel Staley
April 12, 2010, 3:02pm

A federal audit of the U.S. Postal Service says its business model isn't viable. Surprise! It's long overdue for privatization.

The audit, however, doesn't got that far. In a blog post at the Washington Post's Federal Eye, Ed O'Keefe observes:

The U.S. Postal Service's current business model "is not viable" and the mail agency should make deeper job and wage cuts, hire more part-time staff and consider outsourcing operations, according to a draft of a government audit acquired by The Federal Eye.

Auditors also urge Congress to remove restrictions on the Postal Service's ability to cut Saturday mail delivery and close post offices, according to the report, which offers recommendations similar to the USPS's own proposed 10-year business plan.

Lawmakers requested the Government Accountability Office report, set for a Monday release, as they prepare to consider the USPS plan, which was introduced last month. The proposals call for an end to six-day delivery and ask Congress to give the mail agency the ability to raise prices beyond the rate of inflation and close post offices if necessary. (The full report is out -- read it here.)


Samuel Staley is Research Fellow


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