Americans are expressing serious reservations about the direction of health care reform. The President did little to assuage those fears when he compared the controversial ‘public option’ to the Post Office. Concerns about the administration’s handling of economic matters continues to grow, and citing the USPS as model government program when it is facing serious financial trouble fuels concerns that the administration’s math is not adding up.

Obama Goes Postal, Lands in Dead-Letter Office by Caroline Baum of Bloomberg.

Aug. 18 (Bloomberg) — “UPS and FedEx are doing just fine. It’s the Post Office that’s always having problems.” — Barack Obama, Aug. 11, 2009

No institution has been the butt of more government- inefficiency jokes than the U.S. Postal Service. Maybe the Department of Motor Vehicles.

The only way the post office can stay in business is its government subsidy. The USPS lost $2.4 billion in the quarter ended in June and projects a net loss of $7 billion in fiscal 2009, outstanding debt of more than $10 billion and a cash shortfall of $1 billion. It was moved to intensive care — the Government Accountability Office’s list of “high risk” cases – - last month and told to shape up. (It must be the only entity that hasn’t cashed in on TARP!)

That didn’t stop President Barack Obama from holding up the post office as an example at a town hall meeting in Portsmouth, New Hampshire, last week.

When Obama compared the post office to UPS and FedEx, he was clearly hoping to assuage voter concerns about a public health-care option undercutting and eliminating private insurance.

What he did instead was conjure up visions of long lines and interminable waits. Why do we need or want a health-care system that works like the post office?

What’s more, if the USPS is struggling to compete with private companies, as Obama implied, why introduce a government health-care option that would operate at the same disadvantage?