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by rickmb 4919 days ago
Shouldn't the US Postal Service have died a long time ago?

It always amazes me how the US as self-proclaimed champions of the free market and technological progress still holds on to outdated, bureaucratic nationalized monopolies like the postal service.

In many countries this market has already been privatized a long time ago, and/or scaled down to the point where relics like post offices no longer exist.

4 comments

The main reason for the USPS is coverage. The US has a whole lot of sparsely populated, but not unpopulated, land. Covering these people is part of what makes the USPS unprofitable.

The same problem exists for telephones but the main approach has been to set high minimum prices that non-rural carriers have to pay rural carriers for traffic flowing from the former to the latter. This enables the rural providers to make a profit but leads to unintended consequences like free conference call companies set up in rural areas which get a kick back from the local provider for the incoming traffic they engender.

I thought the reason the USPS was unprofitable was that they had to fund employee pensions 75 years in advance
In fact, I thought the USPS was profitable before that mandate. In fact, one of the very few profitable government agencies. But I might be wrong on that.
It always amazes me that the "efficient", market-driven private package-delivery companies in the US... actually use the government-run postal service as an integral part of their system.

It also always amazes me that people outside the US, or people who've only looked at models of other countries, think we could have universal delivery from a profit-driven private entity (hint: the US does not have the population distribution or density of European nations).

In a sense, it's lovely that people living in the middle of nowhere in Alaska who require bush planes to fly hundreds of miles to deliver anything to them can get a letter for only 40-something cents courtesy of the US Postal Service. The American system of government is all about enabling people's selfish choices to live in the wilderness by forcing everyone else to subsidize their infrastructure, and that's a truly wonderful thing. Can we please find a better way of doing so than stuffing trash in my mailbox every week?
Having come from a country where the postal service was privitized, I'm going to let you in on a little secret: it sucks. But hey, they're profitable...

One of the (very few) things the US does better than most countries is the USPS. It should be a point of pride, not some problem that needs to be left up to the 'free market' to ruin.

Isn't this a perfect example of a service you would want to keep paid for by everyone so it does not die? To me it is a part of important infrastructure and thus should not be thrown into the profit-needing waters of private capitalism.