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Adam Hanft

Adam Hanft

Posted: March 5, 2010 08:35 PM

Like the Post Office? You'll Love Health Care.

What's Your Reaction:

If you're looking for one of the few remaining remnants of Soviet-era bureaucracy, don't set your gaze on Castro's Cuba or North Korea. The Post Office will do.

There may be other institutions in America that are perceived as being as incompetently run, as arrogant, as unaccountable, and as lacking in any fundamental strategic logic. But they certainly aren't as visible.

In a telling instance of bureaucratic synchronicity, the Post Office has just proposed a "ten year recovery plan" this week that includes a projected $40 billion lift to the bottom line that would come from just from eliminating Saturday delivery.

I call it "ironic" because it comes smack in the middle of the health care debate, a struggle in which the phrase "government bureaucrats standing between you and your doctor" is repeated about as often as "Next on line" is grunted by a bored and distracted post-office worker.

The Post Office is a daily reminder for millions of Americans of what happens when you create an organization void of incentive or motivation - an organization that is also incapable of even the most modest degree of marketplace awareness. That's why the carefully crafted Republican arguments about government clumsiness penetrate so deeply into our neural networks and stick like glue. Psychologists call it the availability heuristic. That means we make judgments about the things we don't know much about - or the things we fear - based on how easily a comparable example can be brought to mind.

So the President talks about a new regulatory agency and our brains fire up an image of the Post Office or the Motor Vehicle Bureau or the Passport Office.

This isn't an entirely unfair comparative framework. The reasons the Post Office is in its current mess has a lot to do with the way government operates in general. Government agencies tend to be very bad at forward-planning, at scoping out the trends and drawing conclusions from them, at -in the words of the 9/11 Commission - connecting the dots.

It was the Post Office's failure to first pay attention to the over-night business, which was innovated by Fedex - largely because the government wasn't meeting the needs of business - and then to overlook a little wrinkle called email, that conspired push them to the rim of bankruptcy.

It's been a slow and trackable decline that could have been addressed years ago. The use of the postal system hit its high in 2006, when 213 billion items were dropped in the mail. Last year, the number shrank to 177 billion, and it's projected to drop to 150 billion buy 2020. (That seems wildly optimistic to me.} Those metrics will result in a loss of $238 billion over the next decade. Those are subprime crisis numbers.

Of course, there are systemic reasons behind the government's inability to strategize and anticipate. Even the military - which is constantly playing war-games and using game-theory to plan ahead - constantly finds itself reacting late-in-the-game to what wasn't really that unexpected at all.

The problem is that anticipation and visioning involve risk and require courage. You've got to take a stand. It's far easier (and safer) to sit back, particularly in the government, to let things happen, and then react. Then you can point to "exogenous" market factors that changed the competitive landscape, and then appoint a clutch of committees to investigate the problem. And report back in twenty-five years. And collect a nice pension.

In fairness to the Postal Service, however, there is a built-in structural problem they face. There are crippling regulatory constraints that prevent them from being as nimble and responsive to market needs as a private-sector company would be. As they put in in a PowerPoint present that depicts the handcuffs they're wearing:

"Current regulatory requirements limit USPS's ability to quickly respond to the market and leverage its assets to diversify into more non-mail products and services that support its core mission."

Of course, any health care infrastructure established through new legislation is likely to be similarly burdened, similarly unable to react, and change course when market conditions demand such strategic nimbleness. We need to become much better at creating regulation without creating death-by-regulation.

Understand, I'm not someone who thinks any government is too much government. There are things that government should do and must do - and that the private sector should be kept out of it because there are inherent conflicts between the public good and the profit motive.

But as long as the comparison between walking into a Fedex office and the Post office is as much of a brand disaster for Uncle Sam as it currently is, the public will for an expanded role of government, or even a baseline role, will become as scarce as a 5-cent stamp.

 

Follow Adam Hanft on Twitter: www.twitter.com/hanft

 
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HUFFPOST SUPER USER
kassandrasduplex
07:55 PM on 03/06/2010
Why does this guy Hanft want to beat up the PO? What vested interest does he have? The investor class has wanted to privatize the PO for decades, Despite their deliver peak allegedly being 2006, calls to break them up and their fine unions have been ongoing for decades.
Recently claims have been made that the average POI wage is something like $83 K per years. The carrier I know has a take home of something like $36 K per years and works weekends sometimes, delivering 26 cubic feet of mail every day, facing crazy people and wild dogs.
They smeared the UAW the same way claiming the hourly wage was $70 or more per hour just before the GM UAW was broken.
GM's hourly wage for lineman was $28 per hour.
jhNY
Mercy.
01:17 PM on 03/06/2010
Right now, we've got a heath care system that's run by private business. Newsflash: it's all broken at the bottom, and breaking all the way to the top, once they've got their perfect pool of under-30 customers who get insurance from work (that they seldom use for which their employer pays exhorbitan­tly) and then begin stripping out everybody else from their rolls. You want inefficien­cy? Take the dollars in to dollars paid out that the companies report, and lo! there's still room in there for multi-mill­ion dollar profit in every quarter, but the service provided keeps getting worse each year. And that's as if you could ever expect an honest cost accounting from guys exempt from the anti-trust laws. Give me government­-run every time.

It's fun to beat up on the PO, and hard to defend it in some of its practices and its capacity to plan for the future. But I'll bet everybody attached to businesses attached to first class mailing were caught flatfooted by the explosive growth from out of the ether that is e-mail. Pitney-Bow­es, for example-- think they sell as many machines as they did before the internets? Me either, and last time I looked, they were a private for-profit company. Sometimes things really do come out of left field wfor which nobody could have been adequately prepared. That's life.
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HUFFPOST SUPER USER
Wendy Johnson
10:31 AM on 03/06/2010
The USPS has an obligation to deliver service to the whole country. Private corporatio­ns have an obligation to deliver the highest possible returns to their stockholde­rs. If I'm a drag on them doing that, or if I need something that will interfere with them doing that, they'll cut me off without a second thought.

Sort of like health insurance companies.

I don't know about you, but I'd like to get my insurance from somewhere that's got an obligation to cover me.
10:08 AM on 03/06/2010
I think you would be VERY hard pressed to find a written letter from the post office to ANYONE stating

"We're sorry, we couldn't deliver your letter (package) because it cost us more to process it than we anticipate­d, (and we can't make a profit from it)"

Can the current health care system, or more specifical­ly, the insurance industry make that claim?
08:39 AM on 03/06/2010
Really, Adam, where do you live? I'm not far from the Oakland hub, an enormous facility covering blocks and blocks, adjeacent to the Port of Oakland. Even this huge central office manages to weigh my packages and affix my postage in a timely manner. The brown company and the blue company are no easier to use, and they cost a bunch more money.

Our DMV recently revamped its technologi­es and made the process of conducting official business there faster and easier. Everyone working there seemed pretty happy to have a good job, and no one there was in any way rude to me or anyone within earshot of me. Maybe you should move to Oakland.
08:04 AM on 03/06/2010
I'm glad to see so many readers standing up for the Post Office. In my experience­, the USPS has been waaaay more reliable than Fedex or UPS. And the other carriers can't even begin to compete on price. Only 44 cents to send a letter anywhere in the country? Is there any other good or service you can buy for less? Maybe a gum ball.
HUFFPOST SUPER USER
mcthfg
03:21 AM on 03/06/2010
Why on earth does everything have to make money?

The Post Office was created as a service for Americans, not as a corporatio­n with which to make money.

If you want true free market capitalism­, you can move to... oh wait. No one is stupid enough to believe that would actually work.
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polishlogician
No sugar tonight in my tea..
03:19 AM on 03/06/2010
I don't know if I've ever read a blog on this cite that was so fundamenta­lly disputed, just scanning the comments, I think 98% of respondent­s think this analogy is either: (1) misguided or (2) apt, and that's just fine with them because they love their post office.

Next blog might be entitled "Pets: Are They Really Pulling Their Weight, Why Health Care Reform is Like a Puppy"
03:04 AM on 03/06/2010
The U.S. Postal System is wonderful. I have no idea where this guy is coming from or what planet he lives on. The USPS is incredibly efficient given the enormous task they face every day. The business of America lives and breathes through this system and it has served us faithfully for decades and decades. The USPS is actually proof how well government can work. I am tired of people always ragging on the federal government­. Private business isn't so special. Businesses go out of business every day. There is fraud and corruption and inefficien­cies in business as well. The difference is that the USPS isn't trying to cut corners to squeeze profit out of people. It admirably does its job with clockwork like precision.
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HUFFPOST SUPER USER
Julia Bailey
08:12 AM on 03/06/2010
I can have something picked up in front of my house and delivered 3000 miles for 47 cents. How awesome is that!

And they rarely lose mail. And the online services are fantastic.
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polishlogician
No sugar tonight in my tea..
02:56 AM on 03/06/2010
"The Post Office is a daily reminder for millions of Americans of what happens when you create an organizati­on void of incentive or motivation - an organizati­on that is also incapable of even the most modest degree of marketplac­e awareness.­"
---
as I understand it, the PO operates at a loss because there's no $ in delivering individual letters. Fed Ex or UPS wouldn't deliver a letter across the country for just 40-somethi­ng cents. Hence, "voice of incentive or motivation­" really should be substitute­d for "void of profit motive", we just have to ask ourselves if the PO does provide a valuable service, and IMHO they do.
DrPaulProteus
Welcome to the Occupation
02:49 AM on 03/06/2010
"So the President talks about a new regulatory agency and our brains fire up an image of the Post Office or the Motor Vehicle Bureau or the Passport Office."

My brain is glad that the intent is there to create regulatory bodies and fires up a hope against hope that the regulatory agency proposed will actually have the power and the will to regulate the industry it purports to.
DrPaulProteus
Welcome to the Occupation
02:43 AM on 03/06/2010
I think the post office works pretty damn well for the price. 44 cents to send a letter anywhere in the country if you're not in a hurry. You want FedEx, Mr. Fancy CEO, then pay the premium, but quit beating up on the post office because 90 to 99 percent of the time it works just fine. Lines are long because its a useful service and it serves a lot of people.
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HUFFPOST COMMUNITY MODERATOR
Anaxamenes
It's not how big your micro-bio is...
02:34 AM on 03/06/2010
From what I can tell when I'm waiting in line, most often the backup is from a person who hasn't bothered to bring their package prepared to the counter. The internet is an amazing place of informatio­n so you can prepare yourself for a quick hand off.

I would say thoug,h a suggestion to the USPS. Everyone in my town has to pay a yearly fee for a post office box and pick up their own mail, while everyone who lives outside of the town gets free mail delivery. That to me makes absolutely no sense. One mail carrier could deliver way more block by block than they can driving between orchards. Just make everyone get a post office box, or at least charge those people outside of town the same price as a post office box for delivery to their door. Ooooo problems solved!
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HUFFPOST COMMUNITY MODERATOR
termgirl
terminate nuclear power
01:10 AM on 03/06/2010
Mail delivery is the one thing that I never worry about.
I can count on my mailman.
12:37 AM on 03/06/2010
Your argument doesn't hold one drop of truth or relevance and like all constructi­ve generaliza­tions there are always the exceptions that disprove the rule.

I have had nothing but excellent service from the postal service in my community, population 2 million, and I would readily use them before I would even consider FedEx, with whom I have experience­d nothing but rudeness, inefficien­cy and disgracefu­l customer relations.

Recently, I posted a stack of letters and bill payments at the drive thru at the U.S. Post Office near my house. Mistakenly­, I dropped into the box a check made out to my vet without an envelope that had been stuck between the envelopes I had intended to mail. Believing that it would be prudent to call my bank immediatel­y to stop payment on the check for over $300 because someone might try to endorse it fraudently and I would be out the money. But two days later, I was surprised to retrieve an envelope at my house with the check inside and a note that read "we discovered this was mistakenly placed in the mailbox and are returning it to the address that appears on the face of the check."

That's the USPS and I am proud of their service. They are courteous, helpful and hardworkin­g people who deserve our support and loyalty.

Where else could you find an organizati­on that will deliver your letter across the country for 44 cents?
HUFFPOST SUPER USER
kassandrasduplex
07:47 PM on 03/06/2010
But they are a heavily unionized, socialized agency ripe for privatizat­ion, and Wall Street likes privatizat­ion and dislikes unions. See what they did to the UAW?
HUFFPOST SUPER USER
kassandrasduplex
07:59 PM on 03/06/2010
Let me add that Wall Street is crooked and the socialized forms of our government seem to be working better than the privatized ones. At least for the common American.