During a recent “Good Idea, Bad Idea” question and answer session with President Obama the president was asked, “Mr. President, our deficit (national debt) is higher than ever at $12 trillion. Will you consider allowing the private sector to buy and take over the most troubled government-run agencies such as the U.S. Postal Service?"
The president responded, "Bad idea most of the time. There are examples where privatization makes sense, where people can do things much more efficiently. But oftentimes what you see is companies want to buy those parts of a government-run op that are profitable, and they don't want to do anything else.”
"So, for example, the U.S. Postal Service, everybody would love to have that high-end part of the business that FedEx and UPS are already in, business to business you make a lot of money. But do they want to deliver that postcard to a remote area somewhere in rural America that is a money loser? Well, the U.S. Post Office provides universal service. Those companies would not want to provide universal service.''
The president responded, "Bad idea most of the time. There are examples where privatization makes sense, where people can do things much more efficiently. But oftentimes what you see is companies want to buy those parts of a government-run op that are profitable, and they don't want to do anything else.”
"So, for example, the U.S. Postal Service, everybody would love to have that high-end part of the business that FedEx and UPS are already in, business to business you make a lot of money. But do they want to deliver that postcard to a remote area somewhere in rural America that is a money loser? Well, the U.S. Post Office provides universal service. Those companies would not want to provide universal service.''
