Privatize the Postal Service, Amtrak, Airports, and More

Privatization isn't about cutting corners; it's about unleashing and leveraging the ingenuity and competitiveness of the private sector to deliver better services at lower costs.

by Veronique de Rugy

It's the most wonderful time of the year, and Santa is done checking his list and deciding who's been naughty and nice. Of course, whenever he stops by the U.S. Capitol, he finds evidence of a lot of naughty fiscal irresponsibility that has given us a budget and government that overflow with inefficiency and waste. So my holiday wish is that, one way or another, we get some fiscal cheer by putting a few government-run programs under the privatization tree. Let's unwrap the possibilities!

When it comes to deliveries, Santa's sleigh reigns supreme. The U.S. Postal Service, on the other hand, is more like a lopsided toboggan pulled by one reindeer threatening to go on strike. Despite its monopoly on letters and mailboxes, it's running a tab bigger than a Black Friday shopping spree. In 2024 alone, the Postal Service lost $9.5 billion. Without changes, it's on track to lose another $80 billion in the coming decade. Even the Grinch would be shocked by that.

How did we get here? The government post office has some advantages—like sweetheart loans from the Department of Treasury—but this one still can't turn a profit. It's bogged down by inefficiencies and prohibitive union contracts that have eaten up around 75 percent of past budgets. That leaves little room for modernization or improvements. But it still had room for a multibillion-dollar taxpayer-funded program that was supposed to deliver 3,000 electric mail vehicles by now. Only 93 have rolled out.

Privatization could be the gift that saves the Postal Service. Under private ownership, we'd see competition drive down costs and spur innovation. Just look at Germany's Deutsche Post (aka DHL), a largely private entity delivering top-notch service. Or consider the United Kingdom's Royal Mail, privatized a decade ago and now operating with greater efficiency and customer satisfaction. Imagine a Postal Service that works as efficiently as Santa's elves on Christmas Eve. That's the magic of privatization.

Let's privatize Amtrak too. Despite being structured like a corporation, it's owned by the federal government and operates with chronic deficits. Taxpayers fork over more than $3 billion annually to keep it on the tracks, and in 2023 the company lost $150 per passenger on long-distance routes.

And what do we get for our money? If Santa's sleigh ran like Amtrak, Christmas would be delayed until sometime in March. Trains are late, service is underwhelming, and there's little hope for improvement. Much like the Postal Service, Amtrak's inefficiency is tied to union agreements that make it hard to reward high performers or hold poor performers accountable.

Japan offers a shining example of what privatization can do. In 1987, it split its national railways into six regional companies and one freight company, all privately owned. The result? Trains that run on time, efficient service, and satisfied passengers. Privatizing Amtrak could deliver the kind of rail service Americans dream of—without breaking the bank.

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