ICYMI: President and CEO of the American Consumer Institute (ACI) Steve Pociask recently opined in RealClearPolicy that the U.S. Postal Service needs reform in order to solve its ongoing financial problems. He optimistically notes that both Congress and leadership in agency recognize there is a problem and have expressed willingness to problem solve these issues, with USPS recently releasing a 10-year business plan and Congress has a discussion draft for legislation, both with the same goal of helping the agency achieve long-term fiscal health.
Steve notes despite the common goal, there is a strong chance that politics will make accomplishing it more difficult. He notes, “The long-term success of the USPS is a serious issue worth compromising for in order to achieve the best possible outcome for everyone.”
He also wrote on the importance of non-transparency in USPS accounting regarding mail and package units. He acknowledges, “USPS has more than likely created perverse incentives for shifting revenues and profits from market dominant services to competitive services, as well as shifting costs and risk from competitive services to market dominant services. Empirical evidence based on seasonal earnings and cost trends imply that the parcel segment does not sufficiently cover its share of overhead costs.,” and summarizes, “Rebalancing the overhead costs would not only better ensure USPS’ fiscal sustainability across product segments and help the agency better manage its expenses.” You can read Steve’s full piece here.