Former USPS Economist Details Mismanagement

A recently retired U.S. Postal Service economist has published a pair of papers claiming that the agency's mismanagement caused its current financial crisis.

Charles Guy, an adjunct fellow at the Lexington Institute, a think tank in Arlington, VA, concluded that a taxpayer bailout may be in the offing if postal management does not make major reforms. Facing mounting losses, the USPS has announced it will seek another rate increase this summer and has even floated the idea of ending Saturday mail delivery.

Guy sees it as part of a game of "chicken" between the Board of Governors and the Postal Rate Commission. "If they are not careful, it will be postal consumers and taxpayers who get burned, because higher postage rates and a government bailout may be needed if the postal service does not cut costs and increase productivity," Guy wrote.

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