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God forbid I say profit rather than revenue (though it seems you used them interchangeably as well in paragraph 2). I just don't think you're thinking through
by SHOwnsYou 16y ago
God forbid I say profit rather than revenue (though it seems you used them interchangeably as well in paragraph 2).
I just don't think you're thinking through this completely.
Expenses would be lower after the infrastructure is built, yes. But there would be minuscule revenue also.
The new deficit, however, would likely be comparable to the current deficit. The reason private delivery services (UPS, FedEx, etc) haven't put the USPS out of business is because they only deliver where it is profitable. Live too far away from the drivers' regular routes? Too bad, no package for you.
USPS's UJP (unique justification proposition) is that they deliver anywhere, no matter the conditions.
The implication of this is that there would still be a great need for postmen, but there would be substantially worse economies of scale for the shipment of items. In addition to the worse EoS, there would also not be the revenue from stamps and associated products to offset the costs.
There are other possibilities that might be better, but ultimately the problem is the distance between the goals of public institutions like USPS and private, profit seeking institutions like UPS and FedEx.