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AEI Evaluative Studies


How to Solve the Problems of the U. S. Postal Service


Rick Geddes

Rick Geddes has produced the first intensive analysis of the U.S. Postal
Service since the Postal Reorganization Act of 1970-just as the federal
giant faces the scrutiny of a presidential commission on its long-term
viability and President Bush has announced his intention to privatize
800,000 federal jobs.
   Although the 1970 act set in motion the most extensive reorganization
of a federal agency, almost no rigorous empirical assessment of the act's
effects on the Postal Service has been undertaken-until now.
   Technological developments in communications, the author contends,
make postal reform inevitable. The USPS is unlikely to remain viable for
long in its present form.
   The author explores USPS structure and performance measures, dis-
counts standard arguments about postal monopolies and duties, and cites
the organizational reform of similar industries and experience of other
governments that restructured their postal service. He details a two-step
reform process, including a public offering of shares featuring employee
stock ownership, with concurrent regulation reform, and then the intro-
duction of competition.

The AE Evaluative Studies series aims to promote greater understanding
and continuing review of major activities of the federal government.
Each study focuses on a government program or policy in operation by
examining its purposes, administration, costs, and effectiveness and then
recommends practical reforms for improved performance.

Rick Geddes joined the Department of Policy Analysis and Management
at Cornell University in the autumn of 2002 and is an adjunct scholar at
the American Enterprise Institute.


A=   'American Enterprise Institute
      for Public Policy Research
      1150 Seventeenth Street, N.W.
      Washington, D.C. 20036


How to Solve the Problems of the U. S. Postal Service


ECONOMICS/GOVERNMENT $20.00
ISBN 084474180-9

      1   1       5 52 000

9 780844 7418021       1


Rick Geddes

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