Communication and even package delivery are changing. Change is the only constant in life. So what should be done with the US Postal Service? Senator Shaheen has been consistently in opposition to stemming the flow of red ink. Consistently against postal reform.
Related: Jeanne Shaheen Refuses to Fix US Postal Service Which Raises Your Taxes
We have a new Postmaster General. Did you know that? He is Louis DeJoy. Mr. DeJoy comes to the job with an extensive background in logistics and operations. He is detailing changes to cut costs helping keep the United States Postal Service (USPS) viable. This should come as good news to us all. Last year USPS lost $8 billion. That used to be real money.
Today, Congress has renewed interest in postal reform. The interest is stemming from the likelihood of mail-in ballots for the upcoming presidential election. For the past few decades, some federal lawmakers have attempted to pass legislation to improve the USPS operations. Senator Shaheen is not one of them. She is not a supporter of postal reform.
Postal reform is long overdue. Congress needs to pass smart policies. That means putting in place policies allowing the USPS to operate efficiently for decades to come. A band-aid until the end of the year no longer cuts it and should be avoided.
Postal reform
USPS is struggling to keep up with modern era business needs. Standard paper mail is facing replacement by online marketing and email. According to the Inspector General of the USPS:
“the average number of pieces of single-piece First-Class Mail sent by American adults may have fallen 70% since 1996.”
This was the main function of the USPS.
Private companies have to adapt to the new marketplace. They have the flexibility to change their services to better accommodate their customers’ needs. Online retailers have emerged as the top customers for package delivery companies. Unlike standard mail, online retailers ship all different size boxes and packages at market price. One question before us is: Should USPS become mainly a package delivery service? An alternative is to end its operations and outsource the letter delivery business.
The USPS is managed by government bureaucracy. With Congress pressed to address postal reform, managerial flexibility must be included. If USPS is to continue at all it must adapt to the changing economy. The USPS is currently overseen by the Postal Regulatory Commission plus the Board of Governors.
The Board of Governors is similar to a private companies’ board of directors. It controls the daily operation and postal rates. The Postal Regulatory Commission oversees postal rates and has the authority to reject or implement USPS proposals. The current bureaucratic, legislative, and regulatory procedures stifle the USPS’s ability to compete.
All officials who manage the USPS are selected by the president of the United States. Then they face Senate confirmation. Our elected leaders continually change. It’s difficult, no impossible, to guarantee the Board of Governors will be appointed based on their managerial expertise. Political considerations do factor into the selection process.
What serves the customer the best?
USPS needs to serve the best interest of the American people. Decisions of the Board of Governors influenced by political corruption do nothing but hinder America’s oldest agency. USPS must operate more effectively. The Board of Governors must be de-politicized. USPS requires managerial flexibility over USPS products, operations, and personnel. They need the authority to meet market demands in a timely manner. This will increase USPS responsiveness and offer customers a better service at a lower cost.
Oversight is important, and reform should not be completely removed. Legislative action needs to maintain some regulatory oversight to prevent marketplace monopolization. The Postal Regulatory Commission needs to continue to ensure transparency. Customers depend on USPS for business operations. In every industry, evolution and adaptation are necessary to stay viable.
USPS is a government-run monopoly and it is no exception. The Postmaster General is right to change the Postal Service’s operation for their long-term success. We need to change New Hampshire’s senator to help ensure Congress makes smart policy decisions to help this mission.