Hub Podcasts How to privatize a bankrupt Canada Post
Sep 26, 2025
Vincent Geloso, an assistant professor of economics at George Mason University and senior economist at the Montreal Economic Institute, dives into the financial turmoil facing Canada Post. He discusses the staggering $5 billion losses since 2018 and the structural issues that traditional fixes can't address. Geloso outlines an innovative privatization strategy, drawing lessons from successful models in Europe. He also tackles the role of postal unions and potential solutions for rural delivery, providing a thought-provoking perspective on postal economics.
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Mail Volume Collapse Drives Losses
- Canada Post's mail volume fell from 5.5 billion pieces in 2006 to 2 billion in 2024, a two-thirds decline.
- That collapse in volume explains much of the roughly $4 billion accumulated deficit and the recurring daily losses cited in media.
Taxpayer Support Masks True Costs
- Canada Post has received direct and indirect taxpayer support despite claiming otherwise, including sizable one-off cash injections.
- That fiscal backstop makes future bailouts politically and economically unavoidable if inefficiencies persist.
Open Markets And Let Consumers Choose
- Privatize and open postal markets to competition so firms can offer differentiated services and pricing.
- Let consumers choose door-to-door delivery only if they pay a premium while others opt for cheaper alternatives.