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There's no reason we have to choose between those things. Network utility scales with connectivity. It doesn't make sense to optimize for profit when doing so t
by ezrast 7y ago
There's no reason we have to choose between those things. Network utility scales with connectivity. It doesn't make sense to optimize for profit when doing so triggers a race to the bottom for service all over the fringes of the network.
USPS lost $9 billion in 2019[1], so roughly $30 per American. Anyone who pays even one bill per month via mail would pay at least 4x that much at current private rates. I'm not inclined to believe privatization would bring those rates down much for rural areas.
Sure, if we assume we've implemented UBI and eradicated poverty or something then those prices aren't a big deal. But even then, what have we gained by privatizing? Private industries that provides critical services are either massively subsidized (agriculture, transportation - indirectly via roads) or massively unpopular and frequently monopolistic (telecommunications, health insurance). Even if a talented CEO could squeeze a few percentage points of efficiency out of this industry, it would come at the cost of misaligning incentives in perpetuity, and the government would still be responsible for keeping the industry afloat whenever the economy goes bad.
Or we could let them charge a few extra cents for postage, let them operate 5 days/week instead of 6, charge the wealthiest Americans a couple extra tax dollars each, and keep consistent service available at dirt-cheap prices for everyone everywhere.
[1] https://about.usps.com/what/financials/annual-reports/fy2019.pdf https://about.usps.com/what/financials/annual-reports/fy2019...