IS THE POSTAL SERVICE THE NEXT GREECE?

This was recently posted on the Tax Foundation website. Interesting parallel between Greece and the Postal Service.

by Michael Schuyler

Earlier this year, Postmaster General Patrick Donahoe compared the U.S. Postal Service to Greece. "If we don't do something about the costs of this organization, we will look like Greece....We need less expensive work hours, and we need more flexibility on who can do what jobs." Several days later, the postmaster general repeated the analogy in an interview with Federal News Radio. "Look what's going on in Greece ... The key for us (to avert a Greek-style disaster) is this: Provide great service ... at a very reasonable cost."

Although the postmaster general has made the Greek analogy only a few times in passing, the topic is worth considering in more detail. Greece's disastrous experience holds valuable lessons, applicable to the Postal Service, regarding the dangers of large and persistent deficits and the desirability of addressing financial problems sooner rather than later.

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