Postal Service Needs Improved Productivity

Letter to the Editor Published in The Wall Street Journal

In its latest attempt to increase mail volume, the U.S. Postal Service has proposed offering new worksharing discounts for one of its largest corporate mailers (“Post Office Plan Could Produce More Junk Mail, April 3). But this pricing strategy has failed to achieve positive results in the past, largely because postal management has been unable to consistently capture any requisite cost savings.

It comes as little surprise to many observers that the Postal Rate Commission’s consumer advocate has expressed concern that the Service may be losing money on such discounts.

Even if the plan produces increased mail volume, it cannot be realistically expected to help rescue the Service from its current dire financial distress – unless it is accompanied by long-overdue improvements in productivity. As the Presidential Postal Commission deliberates its recommendations in the coming weeks, such improvements should be an important priority.

Charles Guy, Ph.D.

Adjunct Scholar

Lexington Institute

The author is former Director, Office of Economics, Strategic Planning, U.S. Postal Service.