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Thread: Obama it's the post office that's always having problems.

  1. #41
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    Re: Obama it's the post office that's always having problems.

    Quote Originally Posted by obvious Child View Post
    Not quite.

    Merely existing does not equate to actually working well or being profitable.

    What is CityMail's cost and profit for high volume, slow, low weight mailings? Looking at their site, they seem to be far more interested in the express and large packages, essentially what DHL, UPS and FedEx do.

    The only real way to determine if they are actually a serious competition in high volume, slow, low weight mailings is to look at their volume by product as well as profit by product. Looking at their product listings, they seem to be much like UPS, handling shipping to communication to even warehousing and inventory control. That ain't the same thing as a bulk model high volume, slow, low weight mailings mail company.
    It has been shown to work, the only way that the post office still exists is because they have a monopoly.
    I mean if it was the only way to deliver mail then why would they continue their hold on nearly the whole sector?

    Your not going to find a lot of examples of these because 1. the government restricts these types of operations and 2. the government subsidies national postal services to the point were the price of postage is not an accurate reflection of the true cost.

    This whole thing is kind of funny because Obama has inadvertently shown that government doesn't have to play by the same rules as private businesses do, thus causing them(private businesses) to fail by cheating them.

    Your asking me to find something, that by law in most places, is illegal to exist.
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  2. #42
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    Re: Obama it's the post office that's always having problems.

    Quote Originally Posted by Harry Guerrilla View Post

    Your not going to find a lot of examples of these because 1. the government restricts these types of operations and 2. the government subsidies national postal services to the point were the price of postage is not an accurate reflection of the true cost.
    I'm not so sure about either of those. While you are correct that many places have monopolies, I find it hard to believe that every country in the world has such laws on its books and enforces it. Furthermore, the USPS service does not actually appear to subsidize to the point where true costs are not accurately reflected. Remember that the USPS actually made money for many years. If the true costs are subsidized, then we shouldn't see profits especially after you remove government allocations. Even more interesting is that they made money after massive pensions, which are in no way actual costs to delivering the current mail suggesting that if we remove those pension costs, actual costs are much, much lower.

    The caveat to that is that the large parcel profits may be cross subsidized on the high volume, low weight direct mailings. That I need more data on.

    This whole thing is kind of funny because Obama has inadvertently shown that government doesn't have to play by the same rules as private businesses do, thus causing them(private businesses) to fail by cheating them.
    That argument is dependent upon actual cost per product data.
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  3. #43
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    Re: Obama it's the post office that's always having problems.

    Quote Originally Posted by winston53660 View Post
    Now if we could get them to stop delivering bills.
    If only we could get Congress to do that.
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  4. #44
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    Re: Obama it's the post office that's always having problems.

    Quote Originally Posted by obvious Child View Post
    I'm not so sure about either of those. While you are correct that many places have monopolies, I find it hard to believe that every country in the world has such laws on its books and enforces it. Furthermore, the USPS service does not actually appear to subsidize to the point where true costs are not accurately reflected. Remember that the USPS actually made money for many years. If the true costs are subsidized, then we shouldn't see profits especially after you remove government allocations. Even more interesting is that they made money after massive pensions, which are in no way actual costs to delivering the current mail suggesting that if we remove those pension costs, actual costs are much, much lower.

    The caveat to that is that the large parcel profits may be cross subsidized on the high volume, low weight direct mailings. That I need more data on.
    Even though the post office isn't supposed to be subsidized anymore I'm finding hits on government appropriations to the post office in its budget.

    I'm going to do more research on it later.
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  5. #45
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    Re: Obama it's the post office that's always having problems.

    Quote Originally Posted by Harry Guerrilla View Post
    Even though the post office isn't supposed to be subsidized anymore I'm finding hits on government appropriations to the post office in its budget.

    I'm going to do more research on it later.
    2005 United States Postal Service Annual Report

    Clearly the US government gave $3 billion, but that number didn't change for 3 years, signaling that no more money was given.

    Also for 2007 there doesn't seem to be appropriations either.

    USPS 2007 Annual Report - Balance Sheets - Liabilities and Net Capital

    No 2008 financials up yet.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

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