Scott Grannis’ Calafia Beach Pundit has become daily reading for me  – primarily because I’m a sucker for the charts he shares.
Take a minute to look at this one. (no worries, I’ll still be here when you get back).
Good stuff. It’s rare to see a single chart summarize our own confidence over time, let alone over my lifetime.
Yes, it was the Gay Nineties.
Yes, we did fall off a cliff in 2007 – wasn’t the first time, just the biggest.
Some of you may know you were when John Lennon was shot. Or JFK. Or when we landed on the moon.
1. Other daily reading includes:
There’s a pragmatic optimism across these 4 sites that I find both challenging and refreshing. Plus – they’re not afraid to go deep.
Some ridiculous NPR story yesterday complained that the crowded nature of metropolitan airwaves prevent this from being useful to the vast majority of Americans.
The point isn’t urban America – the benefit is to rural America.
My earlier posts on the topic of opening up white spaces:
Out of context, the specific significance of this post’s title is entertainingly vague.
“Citizens who wish to make a general donation to the U.S. government may send contributions to a specific account called ‘Gifts to the United States.’ This account was established in 1843 to accept gifts, such as bequests, from individuals wishing to express their patriotism to the United States. Money deposited into this account is for general use by the federal government and can be available for budget needs. These contributions are considered an unconditional gift to the government. Financial gifts can be made by check or money order payable to the United States Treasury and mailed to the address below.”
Thanks to Mark Perry for the pointer.
In continuing my mental exercise on replacing the USPS I was stuck with solving the problem of delivery and drop-off for rural America.
Especially deep rural America – where the roads are still gravel.
A I commented on earlier – Wal-Mart’s based its success on serving rural America remarkably well.1
With more than 4000 stores nationally, 3000 stores worldwide, and a highly efficient network of distribution centers – there are few organizations with the presence, passionate customer base, and logistics experience capable of competing with the USPS.
Even half a mile down a dirt road in rural Wisconsin – a Wal-Mart is still a quick 15 minute drive away. And has been for 15 years.
Let’s say Wal-Mart returned to the days of small town packaged good store.
As part of your weekly drive into town for clothes and groceries, you drop your outgoing mail – bills, personal correspondence, everything – off at the customer service desk.
For the personal correspondence – you provide an email address or phone number of the recipient and you go about your shopping.
Wal-Mart – in their characteristic price cutting manner – charges nothing for this service2.
The outgoing mail is picked up by the existing incoming delivery trucks and their first stop is the nearest Wal-Mart distribution center. Where the mail is sorted for delivery to next closest Wal-Mart distribution center to the final destination2. And so on, and so on, until it’s delivered to the Wal-Mart closest to the intended recipient.
Once at this last Wal-Mart – a email (or voicemail) is sent to the intended recipient notifying them that an item is ready for pick-up during regular business hours.
What else would that quote at the top of the post be about?
Oh, how Wal-Mart is transforming the prescription drugs market.
1. Yes, I’m aware my original question was about a competitive non-profit. I do think that’s an more interesting idea – but I landed on Wal-Mart. So let’s explore this for a moment.
2. Just like email.
Yesterday, NPR discussed the challenges of the US Postal Service after reporting a $3.8 billion revenue loss for the fiscal year ending September 30, 2009.
The revenue loss corresponded to a reported 13% decline in mail volume.
I’ve noticed a significant decrease on my end since Dec 2007 as well. For the 2008 and 2009 – the number of credit card offers and direct mail catalogs arriving daily was 0. This number is only now picking back up – maybe one per week. Nowhere near the multiple items per day we received in 2006 and 2007.
We’re even transporting Netflix DVDs less.
I have a hard-time imaging the USPS returning to profitability with first class stamps less than 50 cents a piece. Then again, none of the bulk mailings I mentioned above had first class stamps on them. So, either first class stamps are the USPS’s only profit – or they’re a loss leader.
My bet is the latter.
This puts the Postal Service in a tough spot. FedEx and UPS are taking the high end of their business. Email, Facebook, and 37Signals are taking the low end.
There are a few things we send via the USPS – things that aren’t easily digitized and not urgent enough to send via a private carrier:
- ‘Thank you’ notes from the kids.
- Holiday cards.
Leads me to some interesting questions:
Who else could handle that exchange?
Or, restating the questions –
What would US Postal Service look like if it started today – with FedEx and the internet already well-established ?
Three ideas that immediately come to mind:
- More sub-stations within other existing businesses.
- Email/IM/voice mail notification of letter/package arrival.
- Scheduled home pick-up.
- Co-op business structure.
How would you change the USPS?
I could stare at this image all day. Continually riding its roller coaster in my head – watching geo-political events, holidays, elections, and family gatherings, all unfold.
A couple recent graphs I’m using as the basis for this prediction:
Dow Jones Industrial Average Nov. 2008 – Nov. 2009
My interest in economics was sparked by Black Monday, 1987. Back when the Dow shed 800 points in 2 days – falling below 1800.
The 20 years since have brought some of the most significant advances in technology, communications, and overall quality of life (yes, pat yourself on the back). I fully expect the same looking forward.
1. Thanks to Alex Tabarrok @ Marginal Revolution for the tip.