"To repeat, the postmaster general wants to reduce service in an effort to staunch red ink. That’s service as in mail delivery, the U.S. Postal Service’s bread and butter. Imagine a hamburger joint announcing to its customers that it plans to stop selling hamburgers a day or two a week to cut costs. Of course, a hamburger joint wouldn’t limit the sale of hamburgers to keep its costs down. The guy who owns the hamburger joint would get creative in his marketing and pricing to sell more hamburgers. He might trim costs operationally but not at the expense of selling as many hamburgers as he and his help could flip. Why the difference? The hamburger joint can go out of business. The U.S. Postal Service, being immune to risk, cannot."
Tuesday, March 16, 2010
What Do Detroit, the Postal Service, and Health Care Reform Have in Common?: