Doesn't this stifle capitalism and a free-market economy? If competition drives prices down and improves service, why is this monopoly allowed to exist?
2007-08-06 15:20:10 · 8 answers · asked by Anonymous in Politics & Government ➔ Politics
mb - Humor me. :)
2007-08-06 15:26:53 · update #1
I am pro-union. I'm not advocating.
2007-08-06 15:33:08 · update #2
The simple reason is, they would cherry pick the best postal routes and leave the non profitable routes to the post office.
Kind of like what happened after the air lines were deregulated.
Sure prices went down on the most popular air line routes, but the air lines stopped flying to the smaller airports, leaving those people with no local access to fly.
The same thing would happen if UPS or Fedex were allowed in the bulk mail, business.
They would service the large city mail routes and not do anything to the rural mail routes.
2007-08-06 15:46:14 · answer #1 · answered by jeeper_peeper321 7 · 2⤊ 0⤋
Networks work best when they are ubiquitous, be they electricity, telephone, the internet or the US mail. If every point on the network had to pay its own way the more remote locations would not be cost-justified and the advantage of the network being everywhere would be lost. To maintain the advantage of the network being everywhere we overcharge the parts of the network that are close and concentrated and undercharge the parts that are remote and sparse.
In the case of the US mail if you allowed competition private companies would choose to undercut the USPS' prices in the most profitable markets and the high profits lost would not be available to subsidize the less profitable markets.
2007-08-06 15:31:04 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Deregulation is what the republicans prefer, I thought you were pro-union.
Deregulation is the buzz word for what you are implying, and for all it that has happened AT&T and such , the consumer has been screwed.
Deregulation is allowing corporations to become mega corporations owned by the same investors but devested in competing industries, manipulating prices, and calling it competition.
Humor you? You asked I answered to you this may be funny, but to millions of consumers deregulation has brought nothing but financial barbarism.
2007-08-06 15:24:52 · answer #3 · answered by somber 3 · 1⤊ 0⤋
I don't know, but honestly, it doesn't matter. The USPS is doing very badly because people aren't using mail any more; most corporations rely on electronic transmission of documents rather than snail mail - and when originals are required, they're using Fed Ex or UPS.
2007-08-06 15:33:51 · answer #4 · answered by Bush Invented the Google 6 · 0⤊ 1⤋
it's not that good of a business, I don't hear anyone complaining or see any fighting for the business. remember, E-mail is a competitor so it's not a true monopoly.
2007-08-06 15:30:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
even though FedEx and USPS have a contract to help ship mail do to the fact that USPS can no longer ship on commerical airlines...it is just a contract...UPS also has a contract with USPS...the USPS is still their own entity but uses both UPS and FedEx to help ship mail quickly and more effiecently throughout the US.
2007-08-06 15:27:37 · answer #6 · answered by Shadow211e 3 · 1⤊ 1⤋
The government HATES competition.
They know the Postal Service could never survive if it had to compete with market forces -- so they outlawed them.
2007-08-06 15:25:01 · answer #7 · answered by Anonymous · 2⤊ 3⤋
They don't want to!
2007-08-06 15:24:17 · answer #8 · answered by TedEx 7 · 1⤊ 1⤋