Megan McArdle raises the fundamental issue here:
Congress has given the Post Office two incompatible mandates. It is to make money like a business . . . but it is not to have any of the freedom that businesses have to, say, close branch offices, cut its delivery area, or change delivery schedules.Congress will make it difficult to close post offices or reduce service. Unions (and some Congresspersons) will make it difficult to lower costs to become competitive.
This is, to put it mildly, lunatic.
Should there continue to be a government monopoly on first class mail? I don't know about your first class mail, but most of mine consists of catalogs and solicitations. FedEx, UPS and other services could step in and figure out a way to make a profit. Why not give them the opportunity?