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USPS has several laws affecting it's profitability due to battles in Congress that simply a small government would not have (or be able to sustain). One is bei
by csdreamer7 9y ago
USPS has several laws affecting it's profitability due to battles in Congress that simply a small government would not have (or be able to sustain).
One is being required to over pay it's pensions to shore up the deficit other federal agencies have not made to the federal pension. Another is a requirement to serve mail all 5 working business days regardless of how rural a location it is. USPS actually delivers foreign letters, that can contain small items below cost, as do all nations mail systems due to international treaty. Congress has also has placed limits on how much USPS can raise the cost of a stamp.
And then there is the USPS union battles.
There are plenty of small government agencies that run very well simply because private enterprise has been uninterested or incompetent. Chattanooga TN's utility provider can match Google Fiber on $70 gigabit internet.
- turc1656 9y agoI realize you didn't intend this, but as I read what you wrote I can't help but take it as supporting my claim. What you said about the USPS is a perfect example of why the government frequently does a terrible job running operations like this. None of that (except the union battles) would exist if it weren't for government nonsense. I would be curious to see the details on Chattanooga's ability to provide those lines for comparable cost. My guess is that they get tax breaks that Google doesn't and/or don't have to pay for something else that Google has to - i.e. the land to run the lines. I would be utterly shocked if they didn't have some advantage that existed purely as a result of them being a government agency and were able to compete with Google. Because if they have any advantage, it's not really a fair competition.
- csdreamer7 9y agoI don't think you see my point. There is a reason why I wrote "due to battles in Congress that simply a small government would not have (or be able to sustain)." Mandates, turf battles, happen in large corporations as well as government. Chiefdoms, out of touch executives, in large corporations are as common as partisan battles in Congress. Small governments, like small businesses can operate with a certain quickness and laser focus that larger organizations do not operate under. Which was a point of the article, large banks were ignoring small business lending in these small towns. > I would be utterly shocked if they didn't have some advantage that existed purely as a result of them being a government agency I believe you shall be shocked. The state of Tennessee actually barred them from extending service to other towns because Comcast lobbied/bribed the state. The reason they put in fiber is because the locally owned power municipality needed the fiber to monitor for down lines. The municipality claimed the cost savings for having employees drive around every time the power was cut paid for itself in a few years. The fiber broadband itself is a profit center.