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Germany is 4% of America in size. A single US state with decent population density wouldn't need a nationalized system either. The USPS gets a monopoly because
by Guvante 3mo ago
Germany is 4% of America in size. A single US state with decent population density wouldn't need a nationalized system either.
The USPS gets a monopoly because it is required to go everywhere. If a private company doesn't want to go into Michigan it doesn't have to.
Without a monopoly protection USPS goes from being slightly unprofitable to very unprofitable by companies competing only in cheap areas.
Basically USPS needs $0.78 to mail a one ounce letter overall. However it doesn't need that much for you to mail within the same city, it is probably much less than that.
But they do need it if you send a letter across the country.
- eru 3mo agoThey could auction off a universal service obligation to willing bidders. No need to run a federal agency with a monopoly for that. (And everything you explain could also be accomplished by state-run services, no need to involve the federal level.)
- Guvante 3mo agoUniversal service obligations have been some of the least effective tools used... After all what constitutes not servicing? How would a state run service be better?
- eru 3mo ago> How would a state run service be better? See https://en.wikipedia.org/wiki/Subsidiarity https://en.wikipedia.org/wiki/Subsidiarity
- Guvante 3mo agoEach post office has individual leadership which serves the purpose of that principle.
- eru 3mo agoThat workaround justifies nearly anything.
- Guvante 3mo agoUnless you have an elected position or the position needs to be filled ignoring the wishes of the local group that would select a replacement that is kind of true. Local elections have real value. But splintering a government entity just because you can isn't automatically better. For instance who pays for the last mile? Who pays for the first mile? With a federal program it doesn't matter the answer is the same. With a state program sending mail to a low density state could impact the pricing structure of a high density state. You could end up with fragmentation where cross state is more expensive or worse these friction points are enough where the monopoly breaks down because a few states don't need a monopoly and just let local businesses compete.
- eru 3mo ago> With a state program sending mail to a low density state could impact the pricing structure of a high density state. Yep, aligns incentives nicely! > You could end up with fragmentation where cross state is more expensive or worse these friction points are enough where the monopoly breaks down because a few states don't need a monopoly and just let local businesses compete. Sounds like a good outcome, no? Yes, down with monopolies, especially government enforced ones.
- Guvante 3mo agoYou presume that saving money on stamps (which are less than $1 and locked to inflation) is more important than universal service. Why?