In America: Why USPS Privatization Could Fail - Rural Chaos, Worker Strikes, and No Competition

Bloomberg

Amid controversies over communications, leaked texts, and exposed war plans, America’s leaders might wish they had stuck to letters and postage instead of using Signal. However, with Chief Postmaster, Louis DeJoy’s resignation in March 2025, the air of tumult now reached the historic institution as well. Founded in 1775, the USPS has since been re-organized and restructured several times, the latest in 1971. Nothing is comparable to the impending change that may be brought on should the current Federal leadership have their way.  In a press huddle at the White House, President Trump said, “We want to have a post office that works well and doesn't lose massive amounts of money. And we're thinking about doing that. And it'll be a form of a merger, but it'll remain the Postal Service. And I think it'll operate a lot better.”

Following his appointment to the top post office job in 2020, Republican fundraiser and party donor Louis DeJoy’s tenure was marked by a period of austerity and clashes over privatization. It all came to a head when postal workers struck and picketed across the countries, most notably in Philadelphia, New Jersey, Newark and Delaware, to name a few. Can a centuries-old public institution survive in an era of digital disruption and political polarization?

What can the US glean from international successes and failures? 

Germany

Following the partial privatization of Deutsche Post, in 2000, Germany’s privatization experiment has proved a relative success, and a rare one at that. By leveraging its DHL subsidiary and e-commerce partnerships, the company reported record profits in 2023. “Deutsche Post benefited from online shopping by delivering parcels for Amazon and other online retailers,” notes DW News. However, critics stress Germany’s compact geography and lack of competition (unlike America’s already crowded logistics market) made such a universal service feasible.

UK

Touted as “disaster,” and “shambles,” the UK’s privatization of the Royal Mail was met with controversy before it ever happened, with the then coalition government being accused of preferential treatment of 16 companies, its story does not get any better. The 2013 privatization left taxpayers footing a £45 billion bill due to pension mismanagement. Former Bank of England economist Neil Record condemned the move: “The government promised index-linked pensions… then took the £29bn [from the pension fund] and spent it.” With 70% of Britons now supporting renationalization, the UK serves as a cautionary tale for profit-driven models.

Japan

Japan Post’s privatization, initiated in 2007 under Prime Minister Junichiro Koizumi, began as a bold experiment to reduce national debt. The government raised $23 billion through IPOs in 2015 and 2017, funneling proceeds into disaster recovery after the 2011 Tōhoku earthquake.  Yet by 2019, a massive insurance fraud scandal targeting elderly customers forced leadership resignations and delayed privatization by five years. While Japan Post modernized operations, its dependence on financial services—a sector rife with ethical risks—underscored the fragility of profit-driven models. A seemingly perfect summation of the situation was when one executive with Japan Post told journalists, "We have no culture of emphasizing the interests of the customer."

Portugal

In 2014, following the EU’s bailout, Portugal was forced to play its hand and sell off chunks of its state. Part of this sale was that of its post office, to the CTT Group at a price tag of over 300 million Euros, at just under 3 Euros per share. However, following a series of bad economic bets made by the top leadership, the CTT group was forced to cull the size of the postal service, a direct consequence of which was lack of coverage of rural areas, a threat that the Office of the Inspector General says looms large over the potential privatization of the USPS. These shortages led to unrest within the public and the postal workers of Portugal. Postal Union President Vítor Narciso said in 2022, “There are no postal workers, mail cannot be delivered, and someone – a boss or supervisor – then writes in the distribution center’s IT system that the receiver ‘did not answer’.”

Risk of Alienating Rural America –

Privatization could devastate rural communities, where private carriers like UPS already avoid unprofitable routes. “51 million rural Americans face restricted, if not total loss of, access to delivery,” warned a USPS worker in a World Socialist Web Site interview. Mark Dimondstein of the American Postal Workers Union (APWU) told The Guardian: “The US mail is not for sale. It belongs to Main Street, not Wall Street.”

Worker Backlash

Postal workers describe operational turmoil under DeJoy’s Delivering for America plan. A carrier told the WSWS: “Packages get smashed, mail is delayed daily, and we load trucks in the rain. Management roams around nitpicking uniforms while ignoring safety risks.” The USPS OIG confirmed consolidations worsened service, with one audit noting “not enough staffing.”

Amazon, FedEx & UPS – A Foregone Conclusion to any Competition?

Unlike Germany’s DHL monopoly, USPS faces fierce rivals. “UPS and FedEx already dominate parcel delivery. Privatizing USPS would force it to abandon its universal mandate to compete,” said Rep. Gerald Connolly of Virginia in a statement.

DeJoy’s Legacy – “Tireless Effort,” or gutting for parts?

DeJoy’s resignation followed clashes over Trump’s DOGE privatization demands. While USPS Board Chair Amber McReynolds praised his “tireless efforts to modernize,” workers blasted his cost-cutting. “This contract is an insult. We waited two years for scraps,” said a carrier protesting forced consolidations.

Trump’s push to merge USPS into the Commerce Department drew nationwide protests. “This administration wants to sell the Postal Service for parts,” said Porter McConnell of the Save the Post Office Coalition.  The AP News revealed DeJoy’s deal with Musk’s DOGE to cut 10,000 jobs, prompting unions to warn of “catastrophic consequences,” a potential catalyst to the ongoing protests.

Is Physical Mail Dead? Why USPS Still Matters in 2025

Lifeline for Seniors, Rural Towns, and Democracy

Despite digital shifts, USPS delivered 1.2 billion prescriptions and 135 million ballots in 2024. “Privatization threatens the very concept of universal service,” said Ruth Rhoades of the APWU. The USPS OIG emphasized mail’s societal role: “Profitability isn’t the sole indicator of relevance—it’s about economic development and social inclusion.”

Postal Banking Revival: A Path to Survival?

Advocates propose expanding USPS into banking to serve 7 million unbanked Americans. “Congress forced USPS to turn a profit, but its constitutional purpose is to bind the nation,” argued McConnell. The Guardian notes EU posts offset losses with digital services — a model the USPS could adopt.

Can USPS Avoid the seemingly inevitable Fate?

The global postal crisis offers no easy fixes. While Germany shows profitability is possible, the U.S.’s vast scale and rural reliance make privatization risky. As Philadelphia protesters chant, “They’re obliterating our jobs and communities” the solution may lie in modernization—not Wall Street. “The USPS isn’t a business. It’s a public good,” said Sen. Bernie Sanders in 2024. For 51 million rural Americans, its survival isn’t just practical—it’s personal.