Mar 28 2009
U.S. Postal Service begs Congress for cash
Postmaster General John Potter appeared before a House subcommittee this past week to ask Congress for money. Without it, he said, the United States Postal Service will run out of money before the year is out.
“We are facing losses of historic proportion,” Potter declared. “Our situation is critical.”
Last year the USPS was $2.8 billion in debt, and the first quarter of this fiscal year (October - December) showed a $384 million loss.
Subcommittee chairman Stephen F. Lynch, (D-Mass) said, “With the Postal Service facing budget shortfalls the subcommittee will consider a number of options to restore financial stability and examine ways for the Postal Service to continue to operate without cutting services.”
The fact of the matter is, the USPS is a real monopoly. Unlike Microsoft and others that trust-busters have gone after in the past, a real monopoly can only exist when it is enforced by law, which is the case with the Post Office.
Congress outlawed private mail delivery in cities in 1825, and gave the USPS a monopoly on first-class letters and third-class items such as magazines, catalogs, and junk mail. Some 184 years later, it still has monopoly status. Private carries such as UPS and FedEx have shown the benefits of competition while the USPS has continually raised postage rates since 1958.
Yet here it is, begging for a taxpayer-funded bailout, when it should really have its monopoly status revoked. True monopolies are inefficient, bad for consumers, and bad for freedom.
In 1844 Lysander Spooner proceeded to set up the American Letter Mail Company, going into direct competition with the USPS. He argued that the Constitution said Congress could “carry the mail” but not prevent others from doing so. He delivered letters between Boston, New York, Philadelphia and Baltimore for five cents. Meanwhile, the USPS charged 18 3/4 cents between Boston and New York.
His was the first private interstate post office, (and it was rather successful), which brought great anger from Congress. Threatened with jail, Spooner gave up the business, but clearly showed up the Post Office and Congress.
Let the Spooner’s of the country compete. Anyone who has had to wait in line at the Post Office knows there has to be a better way.
Sources: Cybercast News Service - Postal Service Asks Congress for Bailout March 25, 2009
Wired - Stop the U.S. Mail! February 2005
Athol Daily News - Stamp-ing Around May 4, 1977
