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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Wednesday, September 07, 2011

The future of all government run businesses.....

The U.S. Postal Service is projected to lose $11 billion this year, and it's running out of cash.

Barring a bailout or massive restructuring, the Postal Service says, the organization may stop operating early next year.

That's a frightening thought. But it's also one designed to get everyone's attention. And now the question will be whether anyone with the power to do anything about it actually does something intelligent.
The problem with government, that these is no feedback mechanism to force change on an organization that it runs. Such organizations can be loss making, be poorly run, be forced to provide loss making services for political purposes and a raft of other issues but they definitely do not have to respond to true market needs. This is the problem with the Post Office. Too many employees, too expensive and forced to provide too many services that just cannot pay for themselves.

This is the future of all government run businesses including Social Security and healthcare as there is no negative feedback mechanism to force change.

And Now The U.S. Postal Service Is About To Go Belly Up… | Daily Ticker - Yahoo! Finance


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