Keeping Postage Public
The United States Postal Service's manufactured fiscal crisis need not lead to the end of the public postal system.
According to the dominant narrative, Amazon.com is the trailblazer of online retail in the twenty-first century; the United States Postal Service is a floundering, outdated public agency. Fittingly, most media coverage of the recent deal between the two to start offering Sunday package delivery paints it as a “lifeline” for the ailing USPS. But the current crisis offers the possibility for a transformative overhaul of the postal service — a transformation for which postal workers appear increasingly willing to fight.
The USPS is, indeed, ailing. In the fiscal year that ended on September 30, 2013, it reported a loss of $4 billion. And these numbers were an improvement compared its record loss of $16 billion in 2012. In October, chief financial officer Joe Corbett announced the agency has a dangerously low cash reserve — only five days of operating cash on hand — leaving the agency highly exposed to risk if the economy takes even a slight downturn.
Many look at the USPS’s financial woes as an indication that their business model has simply been rendered obsolete by the advent of email: “Nobody sends letters anymore!” Superficially, this seems plausible: the USPS has suffered revenue losses due to the decline in first-class mail volume. But parcel mail volume is actually on an upward trajectory, and will likely continue to go up as more people shop online. (If the Amazon/USPS partnership proves successful, other companies whose shipping traffic helps make up the $186 billion e-commerce market will likely pursue Sunday delivery, a potential windfall for the postal service.) Blaming the financial woes of the USPS on the internet alone isn’t sufficient.