Billionaire entrepreneur Elon Musk is once again making waves with bold statements about the future of government-run services. Speaking at a Morgan Stanley conference, Musk argued that the U.S. Postal Service and Amtrak should be privatized, suggesting that private companies could run them more efficiently than the federal government.
“I think logically we should privatize anything that can reasonably be privatized,” Musk said during the event. “I think we should privatize the Post Office and Amtrak, for example. We should privatize everything we possibly can.”
Musk’s remarks come as he continues to advise President Donald Trump on plans to dramatically reduce the size of the U.S. government. The idea of privatizing public services isn’t new, but it remains highly controversial, especially when it comes to essential services like mail delivery and national rail transport.
The Case for Privatization
Musk and other advocates of privatization argue that competition and market forces can drive improvements in efficiency, cost savings, and service quality. “You’ve got a feedback loop for improvement, is what happens when something’s privatized,” Musk explained. “Basically something’s got to have some chance of going bankrupt, or there’s not a good feedback loop for improvement.”
Supporters of privatization point to the Postal Service’s long history of financial struggles. Since 2007, USPS has lost over $100 billion, including $9.5 billion in the most recent fiscal year. The rise of email and digital communication has led to an 80% decline in first-class mail volume since 1997, with levels now at their lowest since 1968. While the Postal Service reported a fourth-quarter profit of $144 million earlier this year, it continues to face long-term financial difficulties.
President Trump has also floated the idea of restructuring or privatizing the USPS. He previously suggested merging the agency with the U.S. Commerce Department, a move that Democrats have criticized as potentially illegal. “We’re losing so much money with the Postal Service, and we don’t want to lose that kind of money,” Trump said, indicating that his administration is seriously considering changes.
Amtrak in the Crosshairs
Musk was particularly critical of Amtrak, the country’s national passenger rail service. “Amtrak is a sad situation… It will leave you with a very bad impression of America,” he said, comparing the system unfavorably to China’s high-speed rail networks.
Despite these criticisms, Amtrak’s ridership has been on the rise. In 2024, it exceeded pre-pandemic levels for the first time, reaching a record 32.8 million trips—a 15% increase over the previous year. The company also reduced its annual operating losses by 9%, reporting a $705 million deficit for the 12 months ending September 30.
In response to Musk’s comments, Amtrak defended its performance. “Ridership and revenue are at all-time highs,” the company stated. “The train service we operate across our nationwide network, as mandated by law, is on track to reach operational profitability—for the first time in history—during this administration.”
The federal government has invested heavily in Amtrak in recent years. The 2021 infrastructure bill allocated $66 billion for rail projects, including $22 billion specifically for Amtrak. The company has used these funds to expand service, particularly on the East Coast, and aims to double its ridership to 66 million passengers by 2040.
The Debate Continues
Privatization of the Postal Service and Amtrak would require congressional approval, and both proposals are likely to face fierce opposition. Critics argue that privatization could lead to increased costs for consumers, reduced service in rural areas, and job losses.
Opponents also stress the importance of these services as public goods that shouldn’t be driven purely by profit motives. The USPS, for example, provides mail service to remote areas where private carriers like FedEx and UPS do not deliver. Similarly, Amtrak serves communities where rail travel is the only viable alternative to expensive air travel or long car trips.
Musk’s remarks also align with his broader vision for transportation innovation. The billionaire has long been a critic of the U.S.’s slow progress in high-speed rail and has promoted his own futuristic concept, the Hyperloop. Some analysts speculate that Musk’s push for privatization could be tied to his ambitions in transportation technology.
What’s Next?
While Musk’s comments have reignited the debate over privatization, it remains unclear whether the government will take action. With President Trump’s administration exploring restructuring options, changes to these services could be on the horizon. However, any proposal to privatize USPS or Amtrak would need to pass through Congress, where lawmakers are deeply divided on the issue.
For now, the discussion continues. Whether privatization would improve or disrupt these essential services remains an open question—one that will likely be debated for years to come.
