Ep. 13 - Insufficient Postage: How Other Countries Adapted While We Waited
People of Agency Episode 13: Show Notes
Episode 13: Insufficient Postage: How Other Countries Adapted While We Waited
Explicit: No
Summary
December 30, 2025. A Danish postal worker delivers the last letter Denmark will ever send. After 401 years, postal service ends entirely. The 1,000 iconic red mailboxes get auctioned off, nostalgic Danes crash the website buying them as souvenirs. Starting January 1, 2026, mailing a letter costs $4.55 with no street mailboxes, only kiosks run by a private newspaper company. Denmark spent 25 years building e-Boks (mandatory digital mailbox system) before making this choice, but still left 271,000 digitally-exempt people behind.
Episode 13 reveals what happened globally while USPS fought for survival in the 2010s. The UK privatized Royal Mail in 2013, shares jumped 38% first day (taxpayers lost £750 million), service collapsed to 76.5% on-time delivery, stamp prices rose 183% (60p to £1.70), and 68% now want renationalization. Netherlands' PostNL fully privatized then begged for €68 million in subsidies (rejected).
Argentina privatized in 1997, went bankrupt in four years with $900 million debt, returned to profitable public ownership. Meanwhile, Switzerland stayed 100% public, diversified into logistics/banking/buses/digital services, ranks #1 in world for eight consecutive years with zero subsidies and 324 million franc profit. Germany privatized strategically (government kept 20.5% stake), bought DHL to become world's largest logistics company, built 42,000 electric vehicles in-house. France stayed 100% public, La Banque Postale serves 10.8 million including 3 million vulnerable households, 40,000 carriers do elder check-ins. Japan Post runs a $2.2 trillion bank serving nearly every adult.
But USPS? Section 102 made all of it illegal. Fiscal 2012 loss of $15.9 billion (87% from prefunding mandate), 88,000 jobs cut, two-tier wages for 120,000 workers, Board of Governors vacant for 5 years, Amazon partnership with questionable subsidies, but Informed Delivery got 50 million subscribers. Workers won the Staples fight, 3-year campaign with AFL-CIO boycott, 1.6 million teachers boycotting, international solidarity from 26 countries, forcing termination in 2017. The lesson: diversification, innovation, proper funding, and labor protections matter more than ownership structure. But USPS was legally prohibited from trying any of it.
Key takeaways to listen for
[00:05:18] Act I - When Privatization Goes Wrong: UK's Royal Mail privatized 2013 with 38% first-day share jump (£750M taxpayer loss), service dropping to 76.5% on-time with £37M in fines, stamp prices up 183% while 68% want renationalization; Netherlands' PostNL begging for €68M subsidies after privatization; New Zealand cutting urban delivery to 3 days/week while private DX Mail cherry-picks routes; Argentina's 1997 privatization going bankrupt in 4 years before profitable return to public ownership
[00:18:05] Act II - When Public Ownership Works: Switzerland 100% public ranking #1 globally for 8 years with 324M franc profit, PostFinance holding 100B+ francs, PostBus carrying 183M passengers, ePost digital mailbox, SwissID with 3.4M users; Germany's strategic privatization keeping 20.5% government stake, acquiring DHL for 94.4B euro revenue, building 42,000 electric vehicles in-house; France's La Banque Postale serving 10.8M customers (3M vulnerable), 40,000 carriers doing elder check-ins; Japan Post's $2.2 trillion bank serving 115M adults
[00:34:56] Act III - What America Was Doing (and Not Doing): Fiscal 2012 loss of $15.9B (87% from prefunding of $54.8B in losses 2007-2016), Patrick Donahoe cutting 88,000 jobs and 141 facilities while Congress blocks Saturday delivery elimination, Board of Governors vacant 2014-2019 (5 years without quorum), first-class mail dropping from 52% to 33% revenue while packages grow 170%, two-tier wage systems affecting 120,000 workers, Postal Pulse ranking 1st percentile with only 17% engage