A Soviet joke goes like this: "Daddy, daddy, they've said on the radio that vodka price goes up next month! Does it mean that you won't drink as much anymore?" — "No, son, it means that you won't eat as much no more".
So. The new private owner(s) will try to increase their profit. Increasing the efficiency of the processes already in place while providing the same services with the same coverage/quality/etc. at the same prices is indeed one way to increase the profit... but it's one of the hardest ways. Hiking up the prices and discontinuing services with smallest margins is a much simpler, easier, and even more effort-efficient way so this is what's going to happen first.
I read the whole article, and it had a lot of informed discussion within it, but ultimately that discussion felt a little pointless.
The crisis is manufactured, the debate of “what to do” or “what would happen if privatization happens?” does not need to be a discussion.
The USPS is a no-brainer public service and the only reason there is any question of its value is due to the severely broken, dysfunctional, corrupt Congress.
If it’s unprofitable, it’s barely unprofitable, especially in the scope of government services.
How many days of the Iran war would fully fund the USPS’ operating budget deficit for a year?
I’m not even sure that corporate lobbyists will be happy with privatization. For example, both FedEx and UPS rely on USPS for last mile delivery of some types of packages. What about all the companies that send me junk mail 6 days a week? Are they going to be happy when one of their most effective forms of marketing doubles in price or shrinks down to 3 day a week service?
It's a casualty of political corruption, both moral in terms of Party first politics and run-of-the-mill crony capitalism. That's what it means.
The consequences are far reaching for many existing industries. It may never be unraveled once initiated. It will give rise to more concentrated wealth and power. This is by design.
The postal service was in the constitution from the beginning - Washington signed it. But the wording is a bit weird - obviously there's supposed to be a postal service but now with how bad tings have become, who knows.
Pretty important asterisk concerning the privatization of the Japanese rail network: this privatization led to the closure of a lot of rural, unprofitable lines. IMO this would play out similarly for the USPS; it's not hard to remain profitable when you can just cleave off the parts of your public service that are in the red.
It means prices will go up and service/quality will go down. I already consider the service sort of at a base state. If it gets any worse, it will just go under. Which is what they want.
The same could be said about many organizations within companies if you don't give them a proper budget. Once you start actually caring about being profitable it turns out that you can find how to do things in a way that is less wasteful. Cost acts as an incentive to reduce waste and if you remove it then there is no force to combat waste or unsustainable practices.
>It’s not that private entities won’t deliver postal service; it’s that they quite literally can’t.
If you paid someone $10,000 to deliver a letter to somewhere in the country I'm sure they could find a way to bring it there. It is not impossible.
It's already a (public) corporation. You can send mail through the non-profit, old postal service. You have to measure the postage yourself and put it in the slot called non-domestic mail.
German railroad system worked pretty well, then it got partially privatized around 20 years ago. Supposingly cheaper that way. Turned out, cost were cut regarding infrastructure to make it cheaper. Today, the railroad system is terrible and the administration just agreed to spend 100 billion dollars on it.
Do you want quality sustained over decades? Then prioritize quality over cost and keep it public. Do you want inevitable enshitififaction and something that barely works good enough? Privatize it.
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[ 7.0 ms ] story [ 73.1 ms ] threadSo. The new private owner(s) will try to increase their profit. Increasing the efficiency of the processes already in place while providing the same services with the same coverage/quality/etc. at the same prices is indeed one way to increase the profit... but it's one of the hardest ways. Hiking up the prices and discontinuing services with smallest margins is a much simpler, easier, and even more effort-efficient way so this is what's going to happen first.
The crisis is manufactured, the debate of “what to do” or “what would happen if privatization happens?” does not need to be a discussion.
The USPS is a no-brainer public service and the only reason there is any question of its value is due to the severely broken, dysfunctional, corrupt Congress.
If it’s unprofitable, it’s barely unprofitable, especially in the scope of government services.
How many days of the Iran war would fully fund the USPS’ operating budget deficit for a year?
I’m not even sure that corporate lobbyists will be happy with privatization. For example, both FedEx and UPS rely on USPS for last mile delivery of some types of packages. What about all the companies that send me junk mail 6 days a week? Are they going to be happy when one of their most effective forms of marketing doubles in price or shrinks down to 3 day a week service?
The consequences are far reaching for many existing industries. It may never be unraveled once initiated. It will give rise to more concentrated wealth and power. This is by design.
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I have a hard time seeing a private company scrupulously handling these operations when the incentives to manipulate them could be very large.
The same could be said about many organizations within companies if you don't give them a proper budget. Once you start actually caring about being profitable it turns out that you can find how to do things in a way that is less wasteful. Cost acts as an incentive to reduce waste and if you remove it then there is no force to combat waste or unsustainable practices.
>It’s not that private entities won’t deliver postal service; it’s that they quite literally can’t.
If you paid someone $10,000 to deliver a letter to somewhere in the country I'm sure they could find a way to bring it there. It is not impossible.
Do you want quality sustained over decades? Then prioritize quality over cost and keep it public. Do you want inevitable enshitififaction and something that barely works good enough? Privatize it.