Paul Buchheit at Common Dreams takes a look at The Project on Government Oversight’s latest report on privatization. They found that in 33 of 35 cases the federal government spent more on private contractors than on public employees for the same services. The authors of the report said “Our findings were shocking.”
For the U.S. Postal Service, for instance, it costs less than 50 cents to send a letter to any remote location in the United States. For an envelope with a two-day guarantee, FedEx and UPS charge about four to five times as much.
USPS is so inexpensive, in fact, that Fedex actually uses the U.S. Post Office for about 30 percent of its ground shipments. As Ralph Nader notes, the USPS has not taken any taxpayer money since 1971, and if it weren’t required by an inexplicable requirement to pre-fund employee benefits for 75 years, it would be making a profit. Instead, this national institution has been forced to cut jobs and routes and mailing centers.
In other words, privatization places profits over people.