Friday, August 12, 2011

Postal Implosion Presages Uncle Sam's Drawdown

The phrase "going postal" needs rehabilitation.  It paints an image of a U.S. Postal worker about to blow a head gasket on a rampage.  Our society can do better than this.  From now on, let's agree that "going postal" should refer to the U.S. Postal Service going bankrupt from lack of mail volume and high fixed costs

The sad story of a quasi-government agency losing money even though it has a near monopoly on its market is common to Amtrak, Fannie Mae, and Freddie Mac as well as the post office.  Whether their problems stem from bloated costs and obsolete strategies (Amtrak and the Postal Service) or insane mandates to underwrite malinvestment (FRE and FNM), the best solution should be the same in all cases - pull the plug.  The American empire's experiment in living beyond its means is coming to an ugly end.  This will force a radical reduction in the government's ability to fund stupidity.