ZenMode
Legend of ZZL
- Messages
- 5,158
The point about the post office isn't that the post office shouldn't try, within legal constraints, to be as efficient as it can be. (Which, by the way, it does have an incentive to do as an agency, because its budget is limited and set by Congress, and it has to use that budget to do all its work.The point about the post office isn't that the post office shouldn't try, within legal constraints, to be as efficient as it can be. (Which, by the way, it does have an incentive to do as an agency, because its budget is limited and set by Congress, and it has to use that budget to do all its work.) The point is that it can't, and shouldn't, ever subordinate the provision of service to efficiency. For example, federal law sets postage rates for the entire country. It is obviously more expensive to deliver mail from Greensboro to rural Montana than from Greensboro to Raleigh - and private companies like FedEx and UPS can charge more for the former than the latter - but the post office has to charge the same rate for both. And the post office can't change those rates without going through several layers of review and oversight mean to confirm that the change is necessary, appropriate, and in the best interests of citizens who rely on being able to send mail. if anyone wanted to make the post office a more efficient operation, the obvious solution would be to charge more for its service - and to scale those charges based on the actual cost of delivering mail - but that solution isn't an option, and shouldn't be.
As for the latter point, I'm not really sure how that requires explanation. Anyone who has ever been part of bidding and executing a government contract understands how much oversight there is to prevent fraud. abuse, and favoritism in such contracts. Compare that to a private company, even a publicly traded one, where the CEO of a company generally can just enter whatever contract he likes, with shareholders having limited oversight over that decision (limited, for example, by the business judgment rule, which makes it very difficult to win a claim that the company's officers or directors acted inappropriately).
Federal agencies have their own internal embedded regulators who are responsible for investigating and eliminating fraud and waste. Federal agencies are subject to constant congressional oversight and can have their leaders called before Congress at any time to account for their spending, enforcement actions, and policymaking. Federal agencies are subject to all sorts of special rules and regulations about their spending and hiring. Publicly traded companies obviously have their own regulatory oversight, but the government can't closely review all of them all at once, and so things like fraud in federal filings or tax returns will often go unnoticed.
How does Congress determine a budget for the post office? Who/what do they go to for understanding the costs and needs of the post office?