Brookings scholar Elaine Kamarck has a new study favoring partial privatization of the U.S. Postal Service (USPS). Her study comes on the heels of a solid study by Clinton administration economist Robert Shapiro, who looked at the subsidies and regulatory protections enjoyed by the USPS.
Conservative and libertarian scholars have discussed the advantages of USPS privatization for years. Britain, Germany, the Netherlands, and other countries have privatized their systems. But the mainstream media and leaders in Congress have taken little notice. Kamarck’s study generated a respectful news story in the Washington Post, so hopefully the addition of centrist scholars to the debate will generate momentum for reform.
Kamarck discusses the rise of the Internet, the plunge in snail mail volume, and the postal system’s endemic red ink. She discusses the increasing concerns about the USPS competing against private firms in areas such as package delivery.
Kamarck advocates splitting the USPS into two pieces: a government piece that fulfills the “universal service” mandate for delivering mail to every address, and a private piece that would handle activities that compete with other companies.