{"id":3671,"date":"2012-06-11T12:11:00","date_gmt":"2012-06-11T17:11:00","guid":{"rendered":"http:\/\/jimbovard.com\/blog\/?p=3671"},"modified":"2012-06-11T12:11:00","modified_gmt":"2012-06-11T17:11:00","slug":"abolish-the-postal-monopoly","status":"publish","type":"post","link":"https:\/\/jimbovard.com\/blog\/2012\/06\/11\/abolish-the-postal-monopoly\/","title":{"rendered":"Abolish the Postal Monopoly"},"content":{"rendered":"

from the March issue of the Future of Freedom Foundation’s <\/a>Freedom Daily<\/strong><\/a>…<\/p>\n

ABOLISH THE POSTAL MONOPOLY<\/strong>
\nby James Bovard<\/p>\n

Since the 1840s, it has been a federal crime to provide better mail service than Uncle Sam chooses to provide. The Postal Service has a monopoly on first-class mail delivery (with a limited exemption for urgent, courier-delivered letters costing more than $3). The monopoly has become more indefensible with each passing decade \u2014 especially since the government has been intentionally slowing down mail for almost half a century. That tactic reached a climax in December when the Postal Service announced plans to abolish next-day mail delivery. <\/p>\n

Throughout American history, politicians and government officials have treated mail users as captives who could justifiably be abused \u2014 or at least scorned. In 1789 the Constitution granted the federal government the right to set up a post office, but it did not prohibit competition from private services. However, the first postal act, in 1792, did effectively outlaw private competition. <\/p>\n

The first postage rates were extremely high, as Congress tried to force Easterners to subsidize the more expensive service to outlying settlements on the western frontier. As the Postal Service\u2019s official history notes, \u201cUntil 1851, the cost of sending a single sheet letter 40 miles was either 6 cents or 8 cents. When the letter traveled over 400 miles, it cost 25 cents. These prices doubled, tripled, or quadrupled with each additional sheet.\u201d Henry Wells (later of Wells-Fargo fame) entered the market, charged 6 cents a letter, and delivered faster. In the Boston area alone, more than a hundred private express companies carried the mail. Private companies delivered letters directly to addressees\u2019 homes, while the government still required people to pick up their mail at the nearest post office. <\/p>\n

As private business flourished, government postal revenues declined. The postmaster general admitted in 1843 that many people thought the government\u2019s monopoly was \u201codious\u201d but insisted that it had to be preserved for the good of the country. In 1845, Congress tightened the laws prohibiting competition and increased the penalties for violators. In 1851, it lowered postal rates and began providing a direct subsidy for postal operations. <\/p>\n

Even though the Post Office received high subsidies from the Treasury to provide mail service to outlying regions, service was still slow, doubtful, and limited. In 1860, William H. Russell and two partners formed the Central Overland California and Pike\u2019s Peak Express Company. Russell had repeatedly tried to gain government backing to set up a 2,000-mile express mail route from St. Joseph, Missouri, to Sacramento, California, but Congress was not interested. Russell and partners set up relay stations, hired \u201cyoung, skinny, wiry fellows not over 18 … willing to risk death daily\u201d (as the newspaper help-wanted ad declared), and quickly narrowed the communication gap between East and West. The first Pony Express route delivered the mail between St. Joseph and Sacramento in 10\u00bd days \u2014 less than half the time of the Post Office\u2019s route. <\/p>\n

In recent years, the Postal Service has faced repeated challenges from more competent private companies and has responded with one legal counterattack after another. In 1971, a federal district court prohibited a private firm from carrying Christmas cards in Oklahoma on the basis that the plaintiffs, a postal employees\u2019 union, suffered \u201csignificant loss of work time, overtime, employment benefits and morale.\u201d The court concluded that private delivery of Christmas cards would be a \u201cwidespread public nuisance.\u201d The result was that the public suffered slower service and higher costs to support postal workers\u2019 \u201cmorale.\u201d <\/p>\n

In 1976 in New York, a pack of Cub Scouts tried to raise money by delivering Christmas cards. Postal Service lawyers ordered them to stop, and threatened the ten-year-olds with a $76,500 fine. A New York Times editorial regretted that the Postal Service\u2019s carriers were not as fast as its lawyers. <\/p>\n

At the same time the Postal Service was cracking down on competition, it was curtailing its own customer-service goals. Official standards for overnight delivery were lowered in the 1960s, trimming the target zone from statewide to areas conveniently covered by mail-sorting centers. At a 1969 high-level meeting, postal management decided \u201cto no longer strive for overnight mail delivery and to keep this a secret from Congress and the public,\u201d the Washington Post reported in 1974. Postal management also considered cutting costs by educating Americans not to expect \u201cprompt\u201d service, according to the Post. <\/p>\n

Back in 1764, colonial Postmaster General Benjamin Franklin proclaimed a goal of two-day mail delivery between New York and Philadelphia. In 1989, the Postal Service curbed its ambitions and set a goal of two-day mail delivery from New York City to next-door Westchester County, N.Y. Under the new standards, the target for next-day first-class mail delivery was reduced from a 100-to-150-mile radius to one often less than 50 miles. The Postal Service estimated that the new standards could add 10 percent to the average delivery time for first-class mail \u2014 which was already 22 percent slower than it had been in 1969. <\/p>\n

Postmaster General Anthony Frank claimed that the 1989 standards would \u201cimprove our ability to deliver local mail on time.\u201d But that was simply because the Postal Service lowered the definition of \u201con time.\u201d Frank also defended the reduced standards by noting that Mexico\u2019s mail service did not have an official overnight delivery goal for any of its mail. The Postal Inspection Service concluded that post offices \u201cgenerally have a negative attitude towards service improvement, even when the capability is there at no additional cost.\u201d <\/p>\n

In 1996, partly to counter its widespread \u201cslacker\u201d image, the Postal Service began bankrolling a Tour de France bicycle-racing team. But that did not deter the service from again hitting the brakes on the mail. <\/p>\n

Beginning in 2000, the Postal Service quietly slashed delivery targets for first-class mail going beyond local areas in much of the country. A 2006 Postal Regulatory Commission report found that the Postal Service scorned federal law requiring the \u201chighest consideration\u201d to speedy mail delivery. Instead, \u201cadministrative convenience resulted in mapping coverage of the 2-day standard exclusively in terms of surface transportation.\u201d The Commission found that \u201cpostal patrons in several western states, including California, experienced far more service downgrades than those in other parts of the country.\u201d <\/p>\n

The Postal Service has often acted as if mail delivery was a mere nuisance distracting from the gainful pursuit of pensions. The Government Accountability Office reported in 2006 that the Postal Service fails to \u201cmeasure and report its delivery performance for most types of mail.\u201d The GAO also found that the Service\u2019s \u201coutdated standards are unsuitable as benchmarks for setting realistic expectations for timely mail delivery, measuring delivery performance, or improving service, oversight, and accountability.\u201d <\/p>\n

The Postal Service claims to need the entire current mail volume to maintain service. But a 1977 Justice Department study found \u201clittle, if any evidence … that [Postal Service] operations demonstrate pervasive declining average costs per units of production to scale.\u201d It is not inherently cheaper to have one organization carry more than 100 billion pieces of mail than to have many organ-izations carry portions of that 100 billion. If the USPS were right in its claim that carrying more mail increases postal efficiency, then service would be best in big cities and worst in small towns \u2014 but the reverse tends to be true. The USPS studies show that worker productivity in big-city post offices is nearly 50 percent less than productivity in small post offices. <\/p>\n

Postal officials claim that private carriers cannot ensure the inviolability of the mail. But neither can the USPS. During the 1970s, the CIA routinely opened Americans\u2019 letters to catch up on Aunt Martha\u2019s doings. The Postal Service recently gave the Pentagon permission to open servicemen\u2019s mail to search for drugs. It was only a few decades ago that the Post Office refused to deliver Henry Miller\u2019s novels, claiming they were indecent. In 1982, the Postal Service banned from the mails a booklet called \u201cStale Food vs. Fresh Food,\u201d by the National Health Federation, claiming that its conclusions conflicted with the weight of scientific opinion. But allowing the USPS to be a judge of scientific opinion is like appointing the Marx Brothers judges of national culture. In 1983, the Postal Service tried to prohibit a condom manufacturer from advertising by mail, but it was overruled by the Supreme Court. <\/p>\n

There is no excuse for nationalizing the transport of small envelopes. In more than 200 years, the government has yet to reveal a genius for the task. As long as the mail is carried by a tenured bureaucracy with no incentive to move quickly, service will continue to be slow, expensive, and doubtful. <\/p>\n

Is it wiser to rely on a government entity to provide mail service out of good will (or pity) or to rely on private companies to provide good service out of sheer necessity? When people bought \u201cForever\u201d stamps, they didn\u2019t realize that the name referred to the delivery time, not to stamp prices. The American people can no longer afford a monopoly more interested in storing letters than in delivering them. <\/p>\n

James Bovard is the author of Attention Deficit Democracy [2006] as well as The Bush Betrayal [2004], Lost Rights [1994] and Terrorism and Tyranny: Trampling Freedom, Justice and Peace to Rid the World of Evil (Palgrave-Macmillan, September 2003) and serves as a policy advisor for The Future of Freedom Foundation.<\/p>\n","protected":false},"excerpt":{"rendered":"

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