On Tue, 03 Jan 2012 20:35:17 -0600, Marcus Allen
Yes, I know that Wikipedia is not an authoritative source. If you
google for "USPS monopoly" you'll find plenty of other sources that
off the same opinion.
>Ask yourself a simple question: if you want to send "mail", whatever
>mail means to you, to someone, are you required to use the US Post
>Office? Of course, not. It's pretty hard to call that model a
>monopoly.
Well, lets see if that works. I have a pile of bills to pay on my
desk. If I decide to use an alternative method of delivery, what
competitor is available to deliver my payments?
However, I agree. The USPS is not totally a monopoly. They seem to
be expanding the "services" part of the puzzle, which is certainly not
protected by the constitution. They also seem to be targeting UPS and
Fedex by planning to do overnight delivery with up to 70 lb packages.
It's the same problem with the telco and cable companies. If 100% of
their business was a protected monopoly, regulation would be easy.
However, since it's not, confusion reigns supreme.
>I can't believe you're using local government as a basis for having a
>hand in the USPS.
I'm using it as an example of a government agency where I have some
influence on the rates and services. Just a reminder... we have a
representative government. We don't directly affect anything a
government does and spends. However, we do have an affect on our
designated representatives, which make those decisions. I'll spare
you my standard rant on "independent regulatory agencies", which
methinks are far too independent and usually controlled by those they
allegedly regulate.
>Maybe the question needs to be reframed. What other
>piece of Federal Government allows members of the taxpaying public to
>have a direct say in what it costs to run that program?
None. See above. We have a representative government. We elect
representatives. The sell their votes to the highest bidder.
Occasionally, that's a grass roots movement or PAC (political action
committee). The representative then balances doing what right against
doing what's profitable and votes accordingly.
>We agree on that and it's something I've said repeatedly in this
>thread. USPS rates are too low, generally.
Well, there we agree. So, why is the USPS not raising first class
rates in order to cover a project $3 billion shortfall for FY2012?
Instead, they're reducing staff, services, closing post offices. If
this were a private company, I would suspect they're packaging the
company for a takeover or sale.
>>Instead, it's well hidden in the $2-3 billion shortfall
>>each year.
>
>I don't know what's meant by "well hidden".
I covered that in a previous rant. There seems to some variations in
the exact amount of the shortfall. If they include deferred
obligations (i.e. retirement payments), it's probably much higher than
$2 billion. If they only include FY operating costs and revenues,
then it's probably lower. Well hidden in plain sight might be more
accurate. Google for "USPS GAO" for what the general accounting
office thinks of the USPS's accounting practices. Note that the
numbers used by the GAO report is much larger than those claimed by
the USPS:
<
http://dailycaller.com/2011/10/13/gao-says-usps-proposal-would-amount-to-a-bailout/>
>It sounds like you have a
>problem with the way Congress has decreed the USPS will operate. None
>of your objections so far have anything to do with the actual USPS.
Not really. We have the best government that money can buy. My main
comments were over the original premise that the USPS is a good
example of an "efficient" operation, which would then be used to
justify nationalizing the ISP's.
>>I'm fairly sure heads would roll if the USPS was forced to
>>run at break even, where the losses from the previous years were
>>rolled into rate increases in the following years.
>
>Congress has so far shown that they are immune to standard "heads will
>roll" logic.
Sigh. Yeah, that's true. I've often wondered what it would take to
politicize the great unwashed masses. As long as things seem
reasonably function, probably nothing will happen.
>>Other than the monopoly on first class mail,
>
>Which doesn't exist...
Really. How should I have my monthly bills delivered if not by the
USPS? I just looked up the Fedex rates... for envelopes under 1lb,
it's $5.49 for up to 150 miles.
>>Fedex and UPS have done quite well
>>competing with an allegedly break even and non-tax paying operation.
>
>FedEx and UPS don't compete with the USPS on an even basis. They
>basically do package and letter delivery. They don't make regular
>rounds, they don't have the equivalent of neighborhood post offices,
>and they don't do a bunch of other stuff that the USPS does. And when
>you say they've done quite well, you ignore the fact that they charge
>200% to 300% or more than the USPS is allowed to charge for similar
>services. Given the price differential, there's very little reason why
>FedEx and UPS shouldn't do "quite well".
By quite well, I meant that they are making a profit. The question is
not whether Fedex and UPS are overcharging, but rather why the USPS is
running at a loss. If the USPS were really "efficient" and genuinely
in the black every fiscal year, I suspect the rates would be similar
to Fedex and UPS.
>You realize this is a 'local' newsgroup, right? Your personal
>experiences within your neighborhood don't translate to the rest of
>the country. I think it's important to view each of the big 3 delivery
>services on a national level, not under the microscope of your
>particular neighborhood.
Agreed. However, the USPS is required by law to proved uniform
services across the country, which I assume includes delivery
policies.
>>Services will continue to be reduced until efficiency improves?
>
>Like most of what you said above, that too is disingenuous. Congress
>has, time and time again, restricted or outright blocked proposed rate
>hikes that were needed to allow the USPS to break even, so given a
>situation where they're forced to operate at a loss, what should they
>do? They can't raise more revenue, so the other side of the coin is to
>cut costs, usually by cutting services. It's not rocket science or
>even advanced economics. It's pretty simple, actually. Yet, proposals
>to cut services are also blocked by Congress. Rock and a hard place,
>eh?
Yep. Whatever the cause, the USPS losses will continue until
something breaks.