Postal Reform Should Eliminate Private Sector Subsidies (From RealClearMarkets)

Both houses of Congress are finally moving ahead in a substantive, bipartisan manner to reform the U.S. Postal Service (USPS). The Postal Service Reform Act has many important and beneficial provisions. However, the legislation also has a troubling flaw, Section 202, which specifies and requires “an integrated network for the delivery of market-dominant and competitive products.” The practical effect of the wholly unnecessary language is that it eviscerates attempts to price mail products based on mail costs and package products based on package costs. This unravels financial cost discipline, ties the hands of USPS management, and benefits package companies at the expense of those who rely on the U.S. mail, especially senior citizens, and those in rural communities. Lexington Institute’s Paul Steidler discusses this in an Op-Ed here.