Why the Mail Should Be Free

On April 4, the United States Postal Service (USPS) will present its “transformation plan” to Congress. The plan outlines the future vision of the postal service—it specifically addresses new technology, changes in the national and global markets and the postal service’s recent financial problems.

USPS lost $1.7 billion in 2001 and is expecting similar losses this year. The budget shortfalls were a result of Sept. 11, the subsequent anthrax attacks and the recent recession. To combat these losses, the USPS has recently announced postage rate hikes that will take effect on June 30. Among other increases, the cost of mailing a first-class letter will rise three pennies from 34 to 37 cents and the cost of mailing a postcard will rise two pennies to 23 cents. The USPS predicts that these hikes will increase revenue by four billion dollars in the coming year.

However, postage increases on letters and postcards will only perpetuate the financial problems of the postal service. As computer technology becomes more accessible to Americans, demand for letter and postcard delivery will continue to decrease. A rise in the cost of stamps will decrease the number of letters mailed even further.

Only a major adjustment to its underlying financial model will save personal mail and postcard delivery. The government should subsidize the USPS and provide the American public free delivery of personal letters and postcards.

The USPS cannot continue to charge for personal mail delivery. There is no cost to transfer documents electronically, and as electronic transfer becomes more prevalent, expensive letter and postcard costs will make postal delivery unattractive.

This trend has already taken hold. Americans send millions of emails everyday. Electronic greeting cards have become more prevalent in the past few years. Most personal bills can easily be paid online. And according to the IRS, 8.5 million tax returns will be filed electronically this year. The USPS cited a decline in the mail volume last year—likely the first of many. Free delivery of letters and postcards, financed by the U.S. government, is a luxury the American public would be willing to pay for with a small tax increase. Government subsidized postal service is not new to the U.S. The USPS has a legal right to accept taxpayer assistance, and it received operating subsidies as recently as 1982.

The American public would be willing to support a free letter and postcard service because its cost to the government would be small. The USPS has an operating budget of $66 billion, but most of its income comes from sources of revenue outside selling stamps to Americans for personal use. Fees charged to commercial companies for mail and catalogue delivery should remain in place.The USPS should continue to charge for parcel delivery—competing with the United Parcel Service and Federal Express. The USPS should also keep special service charges in place—Americans will continue to pay for certified mail, return receipt and document tracking. Income derived from these sources will help to support the USPS and will keep the government subsidy small.

The USPS board of governors and US policy makers must realize that the USPS monopoly on personal mail delivery is gone. To prevent personal mail from following Pony Express and Western Union Telegram into oblivion, these decision makers must use this moment of transformation to initiate a U.S. government funded, free personal letter and postcard delivery service.When they do, I’ll send them a letter of congratulation right away—without wasting time finding a stamp.