First class postage rates have risen from six cents in 1971 to
25 cents in 1988. This rapid increase might be justifiable if
service had improved commen-surately, but in fact postal service
has steadily deteriorated. The Postal Service concedes that it
takes ten percent longer to deliver a first class letter than it
did in the 1960s, and one recent postmaster general admits that
delivery may have been more reliable in the 1920s. In this volume,
Adie reviews the failures of the U.S. Postal Service--an inability
to innovate, soaring labor costs, huge deficits, chronic
inefficiency, and declining service standards. He blames most of
these problems on the postal service's monopoly status. Competition
produces efficiency and innovation; monopoly breeds inefficiency,
high costs and stagnation.
He also examines the experiences of other countries and other
industries that may be valuable in prescribing reform for the
postal service. The breakup of AT&T provides lessons that may
be applied to postal reform. The long-run effects of deregulation
on the airline industry are also examined. Since the postal service
has serious union problems, Adie looks at the air traffic
controllers' strike and other evidence on pay and labor relations
in government unions. Finally, Adie examines the experiences of
Canada and Great Britain with privatization of government
companies. He then offers a comprehensive--and
controversial--reform plan for the U.S. Postal Service, with no
further monopoly privileges or taxpayer subsidies. He argues that
private companies should be free to compete with the Postal
Service, and it, in turn, should be free to compete in all phases
of the communications business. Without privatization and
deregulation, the Postal Service is doomed to continuing
inefficiency, rising costs, worsening labor relations, and an
increasing loss of customers to more innovative and efficient
service providers. Competition would give the Postal Service a
chance to enter the 21st century as a modern, efficient company. It
would also give American consumers a chance to have the kind of
mail service that a modern economy demands.
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