Transfer The U.S. Postal Service to the private sector

Although Ben Franklin started a postal delivery service in the American colonies in 1775, the U.S. Postal Service did not become an official part of the federal government until 1792. A few things have changed since then. In 1885, a first class stamp cost Americans 2 cents, and the cost didn’t exceed 4 cents until 1963. 

In 2024, the cost of a first class stamp is 73 cents. In just the last 4 years the cost of a first class stamp has increased by 18 cents. Yes, a few things have changed.

In the year 2001, first class mail peaked out at 103,656,000 pieces, and by 2023, had declined to 45,979,000 (U.S. Postal Service data). During the same period the postal rate went from 55 cents to 66 cents. That is a 56% decline—not a successful business model. Do you think there might be a correlation here? Certainly, first class mail seems to be in a death spiral and may very well be dead by the time first class postage reaches $1.00. Yes, a few things have changed, and the U.S. Postal Service is way behind the power curve in keeping up with these changes.

A major paradigm shift is badly needed if the government plans to keep a government-funded postal service alive and self-supporting. The biggest, most expensive, and least efficient aspect of the U.S. Postal Service is free home delivery. 

Unlike 50 years ago, the vast majority of all Americans in 2024 go to town at least once a day. In this, there is a great opportunity for the U.S. Postal Service to massively reduce their cost of operations.

Change the paradigm, and provide every American family with a FREE post office box at their local Post Office. Let people pick up their own mail as often as they like. If some Americans elect to have their mail home delivered, charge them accordingly. The private sector home delivery companies have already proven that people are willing to pay for this service.

As things stand right now, it is clear that the U.S. Postal Service is dying because it is simply pricing itself out of business. One of two things should happen, in my opinion. Either make the suggested kind of paradigm shift and provide a better more cost effective service for the taxpayers or shut down the Postal Service and save the taxpayers from the expense of maintaining such an inefficient outdated operation. Between email and the private sector delivery services, the mission of the U.S. Postal Service could be easily transferred to the private sector.