When my letter gets to the right place on time I have no problems with the USPS. However the USPS is the last monopoly in the United States. I often wonder why they felt the need to spend millions on advertising?
In 1994, the Postal Service spent $7 million to develop a new logo. They spent over $90 million for advertising in the Olympics in Barcelona, Spain, and Albertville, France.
The USPS has billions of dollars in unfunded pension liabilities backed by the federal government, that is, by American taxpayers. In addition unlike private enterprises, the Postal Service is exempt from most taxes.
I remember in the late 1970s it tried to assert its monopoly control over mail to ban the use of the newly emerging technology of electronic mail.
The bulk of the mail is delivered on time, though if they let mail set in a truck they don't have to include it in the official numbers. Thus mail could sit for a few days or weeks then be shuttled out quickly never making the late count. (Bill McAllister, "Millions of Letters Undelivered," Washington Post) I thought I would back this one up since it is hard to believe.
Of course, the facts that there are 900,000 plus mostly-unionized postal workers, and that the USPS is a protected monopoly, combine to create an economic dynamic that almost ensures periodic cost and quality crises. There are very few hardships for the Postal Service if quality suffers, since customers cannot turn to competitors for services. But it is politically very difficult for the Postal Service to cut its work force to hold down costs. One cause of this difficulty is the fact that all congressional districts have numerous post offices and postal workers to remind elected officials and candidates of their special interests. Another cause is the fact that postal union political action committees make generous contributions to political campaigns, $3.27 million for the current election cycle.
However in my little world of the USPS things are mostly great, my mail gets delivered, the small post office has no lines unless Mrs. Yoder is there then I have a good 15 minute wait as she updates the clerk on today's gossip.
I could offer more as to why they don't make a profit but I think you get my point.
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Posted 10/29/2008 4:51 pm
