Search This Blog

Showing posts with label privatization. Show all posts
Showing posts with label privatization. Show all posts

Saturday, July 12, 2025

From Public Good to Target of Sabotage: The Long Decline of the U.S. Postal Service

The United States Postal Service (USPS), long a pillar of American public life and a gateway to middle-class stability, is under siege. While Donald Trump’s administration played a pivotal role in accelerating its recent dysfunction, the erosion of the USPS began decades earlier—through bipartisan policy decisions, creeping privatization, technological change, and ideological hostility toward public institutions. The destruction of the USPS is not a moment, but a process. And its consequences are being felt by workers, communities, and the democratic fabric of the country.

A People’s Institution

The USPS has deep roots in American democracy and labor history. Established in 1775 with Benjamin Franklin as its first postmaster general, the service has operated under a mandate of universal delivery, regardless of geography or profitability. It became a vehicle for social and economic mobility—especially for Black Americans, veterans, immigrants, and rural citizens.

For much of the 20th century, the Postal Service was a stable, unionized employer offering family-sustaining wages. Even as industrial jobs declined, USPS employment remained a critical bridge into the middle class, particularly for African Americans. By the early 1980s, the USPS employed nearly 800,000 people—offering pensions, job security, and federal health benefits.

The Turn Toward Privatization and Market Competition

The seeds of decline were planted in the late 20th century with the rise of neoliberal economics and a bipartisan push for government efficiency, austerity, and deregulation.

In 1970, the old Post Office Department was restructured into a semi-independent entity— the U.S. Postal Service—after a massive wildcat postal strike. While the Postal Reorganization Act modernized the institution, it also removed many public-service obligations from congressional oversight, laying the groundwork for future financial manipulation.

Beginning in the 1980s and accelerating in the 1990s, the growth of private carriers like FedEx and UPS—both supported by favorable legislation and lobbying power—ate into USPS’s most profitable markets: overnight and package delivery. Rather than being forced to compete on a level playing field, USPS was legally barred from underpricing private competitors or expanding into new revenue-generating areas like banking or logistics.

Then came the internet. Email, online bill pay, and digital communications began replacing First-Class mail, which historically covered much of the USPS's operating costs. USPS mail volume peaked in 2006 at 213 billion pieces and has declined nearly 40 percent since. In 2024, total mail volume stood at just over 127 billion pieces.

The 2006 PAEA: A Manufactured Crisis

Perhaps the most destructive blow came in 2006 with the Postal Accountability and Enhancement Act (PAEA), passed by a bipartisan Congress and signed by President George W. Bush. The law required USPS to pre-fund 75 years’ worth of retiree health benefits within a 10-year window—a $5.5 billion annual burden not imposed on any other federal agency or private company.

This manufactured debt crisis gave political cover to critics who claimed the Postal Service was financially unsustainable. It also starved the institution of capital needed for modernization, infrastructure, and workforce development. For over a decade, this artificial shortfall served as justification for hiring freezes, facility closures, and service cuts.

Enter Trump: Sabotage with a Smile

By the time Donald Trump took office in 2017, USPS had already been weakened. But Trump weaponized its vulnerabilities for political gain. In 2020, amid a global pandemic and a presidential election that relied heavily on mail-in voting, Trump launched a public attack on the USPS, falsely claiming mail-in ballots were a source of massive voter fraud.

He appointed Louis DeJoy—a logistics executive and Republican megadonor—as Postmaster General. DeJoy’s appointment was rubber-stamped by a Trump-controlled USPS Board of Governors. Under DeJoy, the USPS eliminated overtime, removed sorting machines, slashed delivery routes, and cut post office hours. Predictably, mail delivery slowed, especially in swing states and communities dependent on timely postal service.

The slowdowns weren’t just political—they were material. Seniors reported late medications. Veterans didn’t receive their VA checks. Ballots were delayed. And postal workers were pushed to the brink. In Detroit and Philadelphia, on-time First-Class mail delivery dropped to below 65 percent in the summer of 2020.

Workforce Impact and Labor Erosion

The USPS has lost tens of thousands of jobs since DeJoy’s tenure began. Over 30,000 positions were eliminated between 2021 and 2024. In early 2025, the agency announced plans to cut 10,000 more jobs, many through early retirement. For a workforce that had already endured years of hiring freezes, consolidation, and low morale, these were devastating blows.

Postal unions, including the American Postal Workers Union (APWU) and the National Association of Letter Carriers (NALC), have denounced the cuts as part of a long-term strategy to hollow out the institution and pave the way for privatization.

Service Cuts and a Two-Tier America

As the USPS has weakened, its ability to provide universal service has eroded. In urban centers, lines at post offices have grown longer. In rural America, post offices have been closed or had their hours slashed. Mail delivery has become slower, less reliable, and less equitable. For millions of Americans, especially those in marginalized communities, the erosion of USPS services represents a withdrawal of the federal government from public life.

At the same time, private carriers have expanded their market share—but only where profits justify service. This has created a two-tier system: fast, expensive delivery for the wealthy and corporations; slow, underfunded service for the rest.

The Broader War on Public Infrastructure

What has happened to the U.S. Postal Service is not an isolated story. It is part of a broader neoliberal assault on public institutions and the working class. From public education to public housing, from transit systems to social security offices, the U.S. has seen a systematic hollowing out of civic infrastructure under the banner of "efficiency" and "market competition."

Trump’s actions—both deliberate and reckless—pushed the Postal Service further down a path of institutional decay. But the responsibility lies with decades of policymakers who devalued public service, dismantled regulatory protections, and enabled privatization without accountability.

A Line in the Sand

The USPS remains one of the few institutions that touches nearly every American. It has survived war, depression, technological revolution, and political sabotage. But its future is not guaranteed.

Saving the Postal Service will require not just reversing Trump-era policies, but confronting decades of bipartisan neglect. It will mean repealing harmful laws like the PAEA, investing in modernization, expanding services (like postal banking), and defending postal jobs and unions.

In a time of deep inequality and civic fragmentation, preserving the USPS is about more than mail. It’s about restoring the public good—and remembering that some things should not be for sale.

Sources:

  • U.S. Postal Service 2024 Annual Report to Congress

  • Bureau of Labor Statistics, Occupational Employment and Wage Statistics

  • Congressional Research Service: The Postal Accountability and Enhancement Act

  • The Guardian: “USPS mail slowdowns raise fears of election interference”

  • AP News: “Trump says he may take control of USPS”

  • Business Insider: “Privatization of USPS could harm rural areas”

  • Teen Vogue: “The U.S. Postal Service and the Working Class”

  • American Postal Workers Union (apwu.org)

Friday, November 8, 2024

How US Colleges Became Corporations (Second Thought)

Chancellor Martin: Public Means Public (Neil Kraus)

Recently, Chancellor Mike Martin laid out his views on UWRF (the University of Wisconsin River Falls) and higher education in the Student Voice.  I’d like to offer a very different perspective on public higher education.  But given his stated belief in the importance of making the case that higher education is a public good, I believe that Chancellor Martin would agree with my argument.

Chancellor Martin correctly stated that: “In an attempt to appeal to students, we told students, if you get a degree, here’s what your lifelong income is going to be. We made it a private good. When it’s a private good, and then asking the public to pay for it, you’ve got to disconnect, right?”  He then went on to say that: “And I think we need to return not just in Wisconsin, but across public higher education, to the argument that what we have is also a very powerful public good.”

I agree completely.  For many decades, higher education has been made into a private good.  This resulted from the unquestioned dominance of human capital theory, which, as an economist, Chancellor Martin is certainly well-versed in.  In brief, human capital theory promulgates the notion that one’s income is – and should be – tied to one’s education and training levels.

Politically, of course, this framing set up education to fail, which explains our current predicament.  The education system cannot change the jobs that exist or wage levels.  The education system educates.

Yet education is very intentionally and incorrectly held responsible for a predominately low wage, low education labor market.  As a result, decades ago it became politically acceptable to cut public higher education spending perpetually, even during the current period of fiscal prosperity.

This is just politics.  Business and the wealthy want to talk solely about education as the path to economic opportunity because it is in their self-interests to do so.  Because when we’re talking about education, we’re not talking about an economy that has been intentionally constructed for owners and shareholders while it leaves a significant majority of workers behind.

Yet Chancellor Martin inadequately addressed the role that the legislature plays in our public institution when he states: “But if the legislature isn’t going to solve it for you, you better damn well solve it for yourself….But the bottom line, it comes back to what can this institution do innovatively.”

When Chancellor Martin refers to “change in the wind,” he fails to mention who’s in charge of the wind machine.  He seems to be arguing in favor of a fully privatized UWRF, a campus funded by donors, corporations, and foundations, which will necessarily reflect their narrow economic interests.  Private funders have no interest in training students for the larger labor market let alone to be well informed, democratic citizens.

Chancellor Martin’s analysis implies our defunded public institution will never receive any funding increases in the future, which would effectively make it a public institution in name only.  This is the narrative we’ve been hearing from all our administrators since last school year, and it appears to be coming directly from the UW System.

But it is a hopeless narrative, and particularly demoralizing and utterly incomprehensible at a time when the state is drowning in money and the UW System continues to spend tens of millions on software and consultants as our campuses shed faculty, staff, and academic programs.

Is this even real?

The word “public” means something very specific: if a good is public, it means it is paid for with tax dollars, not with private dollars.  The military, the local police department, city park, and school district are public institutions.  Public higher education, on the other hand, has been largely privatized because of decisions made by elected officials.

But we can’t be public and rely on private funds.  That’s not what public means.

Private funders – which represent a miniscule slice of the population -- have their own interests.  They’re primarily interested in getting workers for their narrow industries.

And the question of priorities hangs over the Chancellor’s interview.  The UW System has made its priorities clear – we will continue to purchase, without question, more and more expensive software (most of which we don’t need), as we get rid of faculty, staff, and academic programs.

For all the talk of budget cuts on campus, I’ve yet to hear anyone in front of the room say: “You know, I’m sorry, but we just can’t afford [fill in expensive tech product here] anymore.”  Our leaders only tell us they can’t afford employees.

And Chancellor Martin asserts, yet provides no evidence for, the claim that the campus has surplus capacity. I’ve been at UWRF since 2005, and it’s common knowledge that we have far fewer tenured and tenure track faculty positions now in the College of Arts and Sciences than we had several years ago.

But I’m all for data analysis, so let’s make data-informed decisions.

I’ll say again that Chancellor Martin is correct when he states that public higher education is “a very powerful public good.”  But making this case while moving full steam ahead for a privatized UWRF is a massive contradiction in terms.

The public wants affordable, quality, comprehensive, in-person, public higher education.  And in this state, the only way to get this is by attending a UW institution.  Corporate interests want the opposite of all these things.  They want to not pay taxes and make as much money as possible.  This isn’t complicated.

If we go further down the path of privatization – which is clearly the path sought by the UW System -- we directly undermine the notion that higher education is a public good.  More importantly, we will be providing our students with an inferior, expensive, tech-heavy, narrowed educational experience.  We will be walking away entirely from the Wisconsin Idea.

Public means public.  I ask Chancellor Martin to stand with AFT-Wisconsin for comprehensive, in-person, public higher education that prioritizes students and the public over corporations and the wealthy.


Neil Kraus is a Professor of Political Science at the University of Wisconsin, River Falls since 2005, President of United Falcons, the local chapter of AFT-Wisconsin, and author of three books, including The Fantasy Economy: Neoliberalism, Inequality, and the Education Reform Movement (Temple University Press, 2023).

This article first appeared in the UWRF Student Voice

Friday, April 12, 2024

Heritage Foundation's 2025 "Mandate for Leadership" Presents Trump Playbook for Privatizing US Education and Reducing Oversight

The Heritage Foundation's 2025 Mandate for Leadership details what the next Trump Administration has in store for US higher education. The Education section starts on page 319. 

The Mandate was created by an army of writers and policy people, and it is approved by at least 100 conservative groups, including Liberty University and Turning Point USA.   

The authors include former Trump Chief of Staff Mark Meadows as senior partner; the Center for Renewing America led by former Trump-appointee Office of Management and Budget Director Russell Vought; and America First Legal, led by former Trump Senior Advisor Stephen Miller.

While one major goal is to eliminate the US Department of Education, there are many other privatization schemes in the works--shifting powers to the corporate world (and corporate greed) and providing minimal federal oversight. 

These schemes would also reduce oversight of K-12 education, colleges, and student loans. Since the federal government funds a great deal of state-level bureaucracy, these measures would also reduce oversight at the state level. 

It is possible many of these disruptive policies could be employed without Congressional approval. 

This document is more than rhetoric. Republicans have been diligently planning on hiring 20,000 people to help carry these ideas out.  

Even if only partially realized, the Mandate has consequences that could last for generations, further dividing the nation by race and class--and making the nation vulnerable to foreign adversaries.