United States Post Office Monopoly

[dorktv]

Can anyone help me out with this argument I am having with someone regarding the US having a law stating that no one can charge less then the US for first class and third class mail.

Is this right or should the government allow for full competition?

[Crayson]

1. Government Control

Wow, I didn't expect that in the nation of "privatisaton", "globalisation", "competition", "free markets", and many other such nice words...

This is pure protectionism.
The argument,like in many other countries where only parcel services are private but letters are still under state control, is that postal services are a vital thing to a nation. The most basic form of communication. And of course they also want to open your letters and therefor other postal services have to be discouraged from entering this market.
And who would enter a market where you can't set your own price and where the state controlled company is a monopolist. You'd never get a share in that market if you can't lure customers to you.

[dorktv]

3. USPS opens letters but only when they cannot figure out the address

to get some help with finding out the address.

[Eugene]

2. True but which competitor is ready to deliver it to everybody everywhere?

And how do they propose to turn a profit at $0.37 a piece
(or even $1.00 a piece)?

Everybody wants to ship highly profitable express letters.
How many are ready to take on the break-even-at-best regular
mail collection and delivery in rural areas without a
government subsidy?

[dorktv]

6. That is what I wanted to know.

That $.37 is still cheaper then most of the rest of the world too.

[Horse with no Name]

4. I never really thought about it

because postage isn't that much to begin with.
I doubt the other companies would pick up your letter for .37, if this were the case then you would see Fedex and UPS charging .40 if it were profitable, but that is the problem, it is not. They don't have a service that comes close.
So the fact that the USPS will provide that basic service at a nominal fee, then I have no problem if they have price controls over their pricier services.

[dorktv]

7. Actually they are prohibited by law from charging less then

$3 for that.

And I never thought that $0.37 or heck even $0.41 is that much.

[northzax]

11. if that's true, and that was the reason

then wouldn't there be someone charging $3.01?

The USPS is a remarkable entity, no one else can deliver, in three to four days, a letter from Florida to Alaska for $.37 or even a package. I can use Priority Mail and send a book to my mom, in Oregon, for about 4.50. It will get there in three days. FedEx will send the same book, getting there in two days, for about 14.50. and they'll charge me a fuel surcharge on top of that.

[dorktv]

16. Yep...our USPS handles over 200 billion pieces of mail each

year.

[pitohui]

5. don't understand the question

first class mail is delivered for 37 cents, i am not aware of anyone else who cares to undercut that price, it couldn't be done for a profit

usps has plenty of competition for the profitable items such as delivery of parcels

[dorktv]

8. Well the person I am arguing with states that it is unfair

to have a law stating this is the minimum you can charge.

[DrDebug]

9. It is more something from the past

You have to look at it in a time when it would be difficult to get full coverage of all the cities and towns and keep them equal. You have the same problem with high speed internet, because no corporation really wants to connect small towns and rural areas to cable and DSL systems, because it isn't profitable.

The objectvice to have full, affordable coverage for everybody and not just for the people living in the big cities.

[DrDebug]

10. Let me put it like this

If you look at it from costs then it depends on the place you are sending it to. So from Los Angeles the costs would be:

$0.25 to New York
$0.35 to Montreal
$0.45 to Sydney, Australia
$0.55 to Delhi, India
$4.50 to Weisburg, Indiana

And that's not fair for the handful of people who still live in Weisburg.

[dorktv]

15. Cool

[dr.strangelove]

12. Raise you hand if you thought this post was about a new Board Game

[dorktv]

14. what?

[dr.strangelove]

17. You know

a new board game called USPS Monopoly. They have Sports Teams Monopoly (Like Yankees Monopoly), States Monopoly (Like Oregon Monopoly) and even Business Monopoly (like Wall Street Monopoly). I thought there was going to be a USPS Monopoly game.

I could see all the railroads being a form of mail delivery like Parcel Post, Media Mail, Priority or Express. The big post offices could be the streets, or the Post Master Generals. I think this could work.

[triguy46]

13. Its a dying dinosaur...

If it weren't for Christmas cards and Mother's days cards, the USPS would collapse upon itself. Email, fedex, UPS, DHL, all are growing in use and ability to do better what the USPS is supposed to do. You can pay most bills online, get bills online, do business online. Not sure why we have USPS unless its to support ebay. hell, maybe ebay should buy it.