Why America’s post office should be privatised

THE Founding Fathers thought that operating a postal service was a crucial responsibility of the federal government. The constitution allows Congress a monopoly on delivering post. Today the United States Postal Service (USPS) is the third-biggest employer in America, behind Walmart and the Defence Department. For most of the country’s history, USPS provided the arteries along which information flowed.Not any more. The number of first-class letters has fallen by almost half from its peak in 2001, as communication has migrated to the internet. About half of what still lands in letterboxes is advertising. USPS’s revenue from its monopoly is down by 35% in real terms since 2008. Seeking a survival strategy, and with online shopping booming, the post office is focusing on delivering parcels. But it has no monopoly in this business, and its network was built for letters. Parcels still comprise less than a third of revenue. Competition from the likes of UPS, FedEx and DHL means that USPS is unlikely ever to make enough money to plug its massive pension and health-care deficits, which together exceed $100bn. With its debt already at the maximum allowed by law, USPS may also struggle to invest enough to compete with nimbler rivals.