I got involved in a brief discussion on Facebook about privatizing the U.S. postal service. Briefly, those in favor of privatization argued that the post office is inefficient and costly, and that exposing it to market forces through privatization will result in much improved efficiency at lower cost to the American taxpayer.
First of all, if you’re looking for a wasteful government agency to privatize, why not start with the Department of Defense, which spends roughly $750 billion a year, and which has never passed an audit? Leaving that aside, the privatization enthusiasts assume that “market forces” will necessarily generate improvements in efficiency and improved service. But what if it just monetizes everything, leading to higher prices and poorer service?
Privatization enthusiasts assume that “market forces” will necessarily generate improvements in efficiency and improved service. But what if it just monetizes everything, leading to higher prices and poorer service?
Furthermore, why should "efficiency" be the primary goal for a public service? Many small communities and villages rely heavily on local post offices. Under an "efficient" and private system, these local post offices are likely to be closed or consolidated in the name of efficiency, with prices rising for poor and rural communities. Those steps may be "efficient" to private owners, but they won’t be beneficial to all the people who just want mail and related services (and maybe a place to chat with neighbors).
Service to the public should be the primary goal of a public service, not “efficiency.” Sure, efficiency is a good thing, but so too is affordability, convenience, trustworthiness, courteousness, and so on. When you elevate efficiency as the goal above all others, and measure that by metrics based on money, you are inevitably going to compromise important aspects of public service.
Consider the state of public education. When you privatize it, new metrics come in, driven by profit. Private (charter) schools, for example, pursue better students and reject marginal ones as they attempt to maximize test scores so as to justify their approach and ranking. Public schools have to take all students, the good and the bad, the affluent and the disadvantaged, and thus their ratings are often lower.
There’s a myth afoot in our land that government is always wasteful and inefficient, and that unions are always costly and greedy. Our postal service employs roughly 213,000 people, fellow Americans who work hard and who, when they retire, have earned a pension and benefits. Why are so many people so eager to attack public postal workers as well as public schoolteachers?
In my 55 years of living in America, I've been well served by a public post office and well educated by public schools. I see no compelling reason to privatize public services just because someone thinks a corporation driven by profit can do it more efficiently.
People think that corporations driven by the profit motive will inevitably produce a better system with improved service. While profit can be made by providing superior service, it can also be made by providing shoddy service or even no service at all, especially in a market resembling a monopoly, or one where corporations are protected by powerful interests.
To recap: public service and efficiency are not identical. Nor should we think of ourselves merely as consumers of a product, whether that product is mail service or education. We need to think of ourselves as citizens, and the post office as composed of citizens like us providing a public service for us, a service where "efficiency" is only one driver, and not the most important one.
A final, perhaps obvious, point: often those who argue for privatization are also those with the most to gain, financially, from it. A lot of people are making money from charter schools, for example. It's not "efficiency" that's the driver here: it's the chance to make a buck, and despite what Gordon Gekko said, greed isn't always good and right, especially when public service is involved.
What do you think, readers?