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I hate for a lot of people to lose their jobs. But... let it "collapse". It's an outdated way of doing business. I would be perfectly fine if the number of spam advertisements, I mean junk mail, was curbed in my mailbox - so why not start by doubling the cost to send such mail.
That would then surely impact the total mail volume quite dramatically, reducing it I mean --- so then go ahead and just deliver mail to my neighborhood three times a week instead of six.
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The obvious solution is not even mentioned in the article. Just shut the post office down and allow private companies to compete in delivering first class mail. Of course you would probably no longer be able to send a letter to alaska for the same price as sending it across town, and half a million well-payed postal employees would no longer get cushy jobs subsidized by the rest of us. But would that really be such a tragedy?
Things will only continue to get worse for them. Obviously the world has reached "peak postal mail" a while back. They've got to fire a ton of people and scale back operations.
I agree with most of that. There is a national interest in keeping SOME of the Post Office functions Federalized.
For instance, during the anthrax scares, a totally privatized system might have responded differently. There's a sense of duty and obligation that comes with being a government worker that isn't present with private citizens. The post office also serves vital functions overseas for soldiers and servicemembers that privatization may or may not be willing to take on.
I'm not saying we should continue to subsidze the ENTIRE postal system, but there are some core/basic functions that need to be in the hands of the Federal govenment for times of crisis and for very abnormal services.
I think the bigger and better solution would be to dissolve the postal union agreement and allow the Post Office to adapt/change with the market better. The Post Office is already using a great deal of private contracts to make themselves more efficient. Without the burden of the union contract they'd be able to use that feature even more.
As mike points out, it would be easy to solve by raising the price 300% to send mail.
I imagine the problem with that is it essentially would be a tax on old people and no politician is going to want to touch that.
It is a pretty absurd economic waste though that we largely subsidize companies sending me paper that I immediately toss in the garbage.