The United States Postal Service: Privatize for the Welfare of the Taxpayers and Government Karina Cabrera, Stephanie Ballesteros, Yolanda Cuadras, Brent Brzuchalski Com/172
April 25, 2013
The United States Postal Service: Privatize for the Welfare of Taxpayers and Government Thesis Statement: The United States Postal Service (USPS) has been government owned since its establishment; however privatizing the USPS will consolidate the nation’s debt without the help of taxpayer money.
The USPS is an independent government agency responsible for providing postal service for the United States (AllGov, 2013). The USPS is a preferred transporter for postal services, which explains why the USPS makes huge revenues; nevertheless this does not conclude the USPS is making a profit. With the nation recovering from a recession, the last problem the U.S. taxpayer or the U.S. government needs is inoperable spending.
Since the beginning, the United States Post Office (USPS) has weathered many harsh climates, long seasons and economic downfalls. In 1775, The United States Congress appointed Benjamin Franklin as the first postmaster general to the United States Postal Service ("Congress Establishes U.S. Post Office ", 2013) Since then, many have followed. Today, the United States Post Office is the largest government business, which is currently having a hard time turning a profit due to competitors such as DHL, FedEx, UPS, electronic payments, and new technology such as email. The post office deals with every aspect of receiving, securing, sorting, moving, and delivering mail to people all over the world. From the neighborly mailman to the friendly office staff many have grown up with, the U.S. Post Office is a part of American history and is in dire need of help. Many middle-aged people probably remember the times when a mail carrier would carry up to 50 plus pounds and possibly walk the lengths of a marathon every day just to deliver mail to the people in their district. Now the limit is kept to 35 pounds and has been that way sense the late 1950s. (AllGov, 2013) Under President Bush in 2006, the Post Office started funding its employee’s retirement in an act called Postal Accountability and Enhancement Act. (AllGov, 2013) This was set in place to hopefully preserve the Post office and make up for the huge amounts of losses it has seen in recent years.
Several Americans believe the USPS is a government owned agency, but it is not. The USPS is a self-governing division of the executive branch, which is funded by the proceeds of mailing and shipping supplies, mailing and shipping costs, commemorative items and help from the government (AllGov, 2013). Though the government does not own the Post Office, it does have a say in its operations. For example, nine out of eleven members of the Board of Governors of the USPS, who set policies, procedures and postal rates, are appointed by the President and confirmed by the Senate (AllGov, 2013). Since the USPS is provided to the people by the government, the government has a fiscal responsibility in harsh economic conditions to the U.S. Post Office.
In the fiscal years of 2007 through 2009, the financial strength of the Post Office declined. Losing close to $12 billion, the USPS accumulated an outstanding debt of $ 10.2 billion by the end of the 2009 fiscal year (Herr, 2010). With declined mailing volume and revenue, hefty economic losses and increased liability to the government, it is obvious Congress must interfere before the U.S. Post Office is no more; the only solution is Postal Reform.
With the USPS being at its lowest point financially, restructuring its operating procedures is required for its survival. Many ideas have been discussed over the years for Postal Reform, but with many controversies, which has discontinued immediate action. According to Herr (2010), the four key actions Congress should take are: reducing compensation and...