Can't comment on the way USPS is funded, or how it is government run, etc.
I can, however, say that I rant and rave about how reliable and amazing the Postal Service in Canada is. And I am so happy with the prices! But boy would I love it if USPS took it over and we got all the services my neighbours to the South have!
Those little domestic packages which are sent with tracking cost those in the US a couple dollars max. Do you know what the comparison to that costs in Canada? Well...for the longest time we did not even have a service like that, they just added one a couple months ago. It costs about $8 domestic, and here I am stoked as can be.
You guys have flat rate boxes which go airmail, and ship International (albeit without tracking). Those cost less than what I would pay to send overseas, and mine would go surface mail.
I believe express mail from USPS is about $35-$50 International with tracking (feel free to correct me if wrong). In Canada I can ship a [small box] express to the US with tracking for $35 which is awesome. If I wanted to send a similar box to the UK.... $130! I don't frequently ship elsewhere, but other countries are way more.
Anyways the only thing I'm trying to say here is that you guys get pretty darn good deals. So the reality is that USPS will probably increase their rates to be less of a money eater. Take the good with the bad...prices will probably still be better than many other countries.
and don't blame the postal clerks....it's never their fault