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Fixing the U.S. Postal Service.(Economics and Regulation)(Brief Article)(Book Review)

The American Enterprise

| October 01, 2004 | Lehrer, Eli | COPYRIGHT 2004 The American Enterprise, a national magazine of politics, business and culture (TEAmag.com). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Fixing the U.S. Postal Service Rick Geddes, "Timid Steps Toward Postal Reform," AEI Postal Reform Paper, July 2004 (aei.org)

Under competition from e-mail, faxes, and private delivery companies, the nation's giant postal monopoly has lost billions of dollars over the last decade, leading many to the conclusion that the U.S. Postal Service needs some sort of reform. Two bills winding their way through Congress address this, but the steps they propose are too timid and minor to make a major difference, writes Presidential economic adviser and former AEI scholar Rick Geddes.

Geddes finds some things to like in the proposals before Congress. Most importantly, the proposals would chip away at the near-total monopoly of the Postal Service on first class mail and divide its products into two segments--areas where it has a monopoly and areas where it does not--which would face different standards of regulation.

A host of small changes ...

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