We don't usually think of mail as a technology. But if we define a technology broadly as any system engineered for the accomplishment of a practical purpose, the U. S. Postal Service is not only a technology, but a vital one. Like any technology that doesn't go extinct, it has to change with circumstances or die. And those two alternatives are becoming more obvious by the day as competition from electronic media bring intense pressures on so-called "snail mail" services, not only in the U. S. but worldwide.
This column is brought on by an incident which nonetheless may be symptomatic of wider problems in the system. Ever since my father taught me how to use a checkbook, I have paid for many monthly bills by mailing checks. Until last month, this was a reliable way to pay things like utility bills. But in February and March of this year, four checks I mailed simply disappeared, including the payment for the electric, water, and sewer bill.
These incidents have forced me to join most of the rest of the world in switching to electronic payments for those bills. But it also made me wonder how the U. S. Postal Service is doing in general, and the answer is: not well.
At its inception under the guidance of the first U. S. postmaster—some dude named Benjamin Franklin—the Post Office, as it was known then, became a powerful nation-binding force as it put even the most remote state or territory in contact with the rest of the country by both private letters and favorable rates for periodicals such as newspapers and magazines. It was operated as a Cabinet-level department and not expected to show a profit. That remained unchanged until thousands of postal workers struck in the largest wildcat (=unauthorized by union leadership) strike in U. S. history in 1970. That led directly to the passing by Congress of the Postal Reorganization Act of 1970, which President Nixon signed as a way of giving the postal unions the right to collective bargaining, though it still made strikes illegal.
The Act did more than authorize unions, however. It changed the name of the organization to the U. S. Postal Service and set it up as a quasi-independent corporation that was expected to be self-supporting without government subsidies.
In 1970, the highly-remunerative monopoly on first-class letter carrying enjoyed by the USPS was more than enough to allow it to make a profit. But the era of electronic communications was just around the corner. If you are old enough to remember all the things that used to be done by mail that are now done by means of the internet, that's a lot of mail that has simply disappeared, and most of it was first-class mail. Bills, checks, legal documents, and the whole volume of commercial first-class mail that used to support the old Post Office—virtually all that has now turned into bits transmitted on fiber cables.
Some analyses by Elena Patel of the research institute Brookings show that the declining volume of first-class mail has led to the USPS showing a deficit every year since 2007. By law, it can borrow money only from the U. S. Treasury, and there is a cap on its total indebtedness, which it has already hit. When it can't borrow any more, it has to rely on its cash reserves, and these days those are running out too. So we face the near-term prospect of the U. S. Postal Service going bankrupt unless its governing laws are changed.
This would have happened even earlier if the volume of package deliveries had not increased in a way that has partly compensated for the huge loss of first-class mail, which the USPS had a monopoly on. But in package delivery, the USPS faces stiff competition from fully private businesses such as FedEx and UPS that operate on slimmer margins than a quasi-government service like the postal system, which has built-in labor costs and obligations to serve every single post office in the U. S.
I don't know if all these adverse circumstances are directly responsible for my checks getting lost, but they didn't help.
So what should be done? This problem of electronic-media competition upsetting the fiscal status of mail service is worldwide, not just in the U. S., and different countries are dealing with it in various ways. In some places, the national government simply absorbs the losses and regards the mail service as a necessary part of national infrastructure. That's the way our old Post Office began—as a nation-binding service that was simply paid for out of government funds—but by law the current USPS can't operate that way.
Some might feel that the practice of laboriously carrying little pieces of paper around and physically delivering them is an outmoded practice that should be allowed to die a natural death. But one of the Brookings studies shows that postal services form an important part of the economy of certain areas of the country, especially where population is sparse but people can still operate businesses with nationwide clientele through the postal service.
I don't have any brilliant solution to these problems. But it's clear that things can't go on the way they're going, with the laws governing the USPS assuming economic conditions that simply no longer exist. The first-class-mail monopoly that formerly subsidized everything else the USPS did has vanished as a source of profit. And unless the federal government recognizes that what the postal system does is important enough to pay for with taxes, we will sooner or later hit a crisis resembling what recently struck the Transportation Security Administration, which wasn't funded in the latest Congressional budget. This caused snarled air transportation as TSA workers increasingly showed a reluctance to go to work without being paid.
Maybe a lot of young people wouldn't miss the postman (post-person, these days). But one way to find out the significance of a technology is to imagine that tomorrow you woke up and all of it has vanished into thin air. If the USPS doesn't get its finances straightened out by Congress soon, we may find out what that thought experiment looks like in reality. And the results won't be good.
Sources: I referred to two Brookings studies by Elena Patel on postal systems at https://www.brookings.edu/articles/postal-systems-worldwide-confront-the-same-financial-pressures/ and https://www.brookings.edu/articles/the-us-postal-services-fiscal-crisis/,
and the Wikipedia articles "1970 United States postal strike" and "Postal Reorganization Act."