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Thread: Postal Service on path to be broke by October

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    Re: Postal Service on path to be broke by October

    Quote Originally Posted by MaggieD View Post
    Again, we'll never know. The USPS is a monopoly. If what you're saying is true, why is it protected from competition?

    Further, if the USPS makes money on pakges but loses it on letter, why in the hell aren't they charging more for letters?? And junk mail that probably mails for 7-cents or less apiece.
    Because postal service is a basic service that all Americans need cheap access to.
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    Re: Postal Service on path to be broke by October

    Quote Originally Posted by MaggieD View Post
    Again, we'll never know. The USPS is a monopoly. If what you're saying is true, why is it protected from competition?

    Further, if the USPS makes money on pakges but loses it on letter, why in the hell aren't they charging more for letters?? And junk mail that probably mails for 7-cents or less apiece.
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    UPS charges $9.40 to deliver a 1 ounce letter from New york to LA.
    Rates for junk mail should be raised for sure. Business are taking advantage of the cheap rates.
    Last edited by USA_1; 03-03-11 at 02:40 PM.
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    Re: Postal Service on path to be broke by October

    Quote Originally Posted by USA_1 View Post
    The post office charges $18.30. And it absolutely positively doesn't have to be there overnight. Postage Price Calculator
    Last edited by MaggieD; 03-03-11 at 02:49 PM.
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    Re: Postal Service on path to be broke by October

    Quote Originally Posted by MaggieD View Post
    The post office charges $18.30. And it absolutely positively doesn't have to be there overnight. Postage Price Calculator
    No it charges the price of a stamp. We are talking a 1 ounce letter. And not express. A single postage stamp will mail a 1.1 ounce letter anywhere. UPS charges $9.40 to send 1 ounce letter from New York to LA.
    Last edited by USA_1; 03-03-11 at 02:52 PM.
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    Re: Postal Service on path to be broke by October

    Quote Originally Posted by USA_1 View Post
    No it charges the price of a stamp. We are talking a 1 ounce letter. And not express. A single postage stamp will mail a 1.1 ounce letter anywhere. UPS charges $9.40 to send 1 ounce letter from New York to LA.
    Without the government monopoly on mailing letters, private competition will be able to get into that market and provide a reasonable alternative. A stamp is 41 cents. That might not be feasible in the free market; in fact based on the post office's performance we know that it isn't a viable price. But a dollar might be, if a company was geared towards that kind of service. As it stands, the government, not subject to market forces, is filling that niche and effectively forcing private entrepreneurs in the shipping industry to focus on package delivery as opposed to standard mail.

    The free market is sort of the like the reverse field of dreams. If you come to the free market, they will build what you need.
    Last edited by Guy Incognito; 03-03-11 at 03:46 PM.

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    Re: Postal Service on path to be broke by October

    So we should get rid of the USPS so that we can pay more for sending mail?
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    Re: Postal Service on path to be broke by October

    Quote Originally Posted by USA_1 View Post
    No it charges the price of a stamp. We are talking a 1 ounce letter. And not express. A single postage stamp will mail a 1.1 ounce letter anywhere. UPS charges $9.40 to send 1 ounce letter from New York to LA.
    Yep, and it's a money losing proposition for every piece of mail they handle....especially first class. Compare apples to apples, USA. Overnight v Overnight Maybe.
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    Re: Postal Service on path to be broke by October

    Quote Originally Posted by MaggieD View Post
    Yep, and it's a money losing proposition for every piece of mail they handle....especially first class. Compare apples to apples, USA. Overnight v Overnight Maybe.
    UPS isn't overnight either. UPS standard delivery for a 1 ounce letter from NY to LA is 9 bucks. 50 cents for USPS. Same letter.
    It is losing money but if America needs and wants the service, we must pay for it. Either through taxes or higher rates.
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    Re: Postal Service on path to be broke by October

    Quote Originally Posted by rathi View Post
    The post office was pretty decently run iirc, it was actually profitable until a few years ago. I don't mind phasing it out in the modern era, but whatever replaces it needs to insure access to all Americans as public infrastructure. E-mail doesn't cut it alone, as it can't deliver small items like credits cards, not is it available to 100% of people.
    true, and I agree, but think of all the smaller "courier" type businesses that would start popping up.. heck, it could single handedly be responsible for a total recovery of the US economy..


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    Re: Postal Service on path to be broke by October

    Quote Originally Posted by USA_1 View Post
    UPS isn't overnight either. UPS standard delivery for a 1 ounce letter from NY to LA is 9 bucks. 50 cents for USPS. Same letter.
    It is losing money but if America needs and wants the service, we must pay for it. Either through taxes or higher rates.
    What everyone keeps forgetting about is VOLUME. USPS can charge 50 cents because it deals with massive volume of those tiny letters and envelopes. UPS does not. If there was no USPS and UPS and FEDEX were the only options, the volume would go through the roof thus the cost to deliver each one would go down. If you deliver 1 million letters and your competition delivers 100 million, of course you have to charge more per letter to make ends meet. Not to mention UPS is for profit, USPS isn't. So you're really comparing apples to hamburgers in the first place.

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