This essay Monopoly of the Postal Service has a total of 1316 words and 6 pages.
Monopoly of the Postal Service
In the United States economy most markets can be classified into four different markets structures. But, each and every market in the United States is completely unique from the others. Generally the best type of market structure for the general public is per-fect competition because it creates the lowest possible price for the public. There are some exceptions were perfect competition isnít the best choice for the public on account of various reasons. The United States Postal Service is one of them and since the Postal Service is a monopoly, it is its own market. This paper will discuss the budget dilemmas that the postal service has faced for the past twenty years and if it is in the best interest of the economy for the United States Postal Service to continue as a monopoly.
The first time there was talk of privatizing the Postal Service was in 1979 when the Postal Service was losing vast amounts of money in the long run. But since the Postal Service is a necessity for America, the government had to subsidize the service in order for it to continue in operation. In 1979 the United States Postal Service had a cash flow of $22.5 Billion and was additionally receiving $176 million from investing(#1, Intro). Even with this added revenue the Postal Service was still greatly under funded on its own (#1, Intro). During this time it was discussed to privatize the postal service and introduce competition because of the extreme losses that the service was experiencing. A positive argument for privatizing the Postal Service was with numerous competitors in the market there would be more efficiency and the public would receive lower prices. But this would also increase the usage of resources, for example airplanes and cars. One of the problems the Post Office had was its receipts from consumer purchases that were submitted the next day after the transaction (#1, i). If the receipts were submitted earlier the postal service would receive more money because they could invest that money sooner (#1, i). Another way the Postal Service could increased profits was by competitively selecting banks that would give them higher interest rates and such (#1, ii). Probably the most relevant and final way to improve the budget of the Postal Service is to improve the bookkeeping poli-cies and banking techniques (#1, ii).
Not only did the Post Service propose to increase profits but they also proposed to cut costs in a number of ways. There were three methods that were proposed in 1946 for the protection of salaries that no longer exists (#2, Intro). These have to do with the rural mail carriers. Under this antiquated method of delivering mail the Postal Service was los-ing money to any mail that went to "rural" areas (#2, i) There are 48,000 mail carriers that deliver mail to millions of families that are considered to be living in rural settings; this costs the postal Service 858 million dollars a year (#2, i). This is a fairly easy problem to fix considering how much money is being lost. It was proposed that money loss could be significantly cut down if the Postal Service corrected the following problems. The rural mail carriers were assigned a certain amount of time to deliver to a specific rural area, this method was out of date and because of this the carriers have free time for which they got paid for (#2, ii). The next problem was that other mail routes based pay on how many miles the route covered, so the carriers were getting paid by the mile (#2, iii). With this problem fixed the Postal Service could saved 26.8 million a year (#2, iii). There was also an hourly rate that was in effect which indirectly promoted inefficient service (#2, iii). A stop to this could have saved the Postal Service $255,000 a year (#2, iii). From the num-bers mentioned above, it can be seen why the United States Postal Service was losing so much money.
These problems did indeed eventually did get solved over the past fifteen years and now the Postal Service is making record breaking profits. Now in the first quarter of the fiscal year 1996 the Postal Service already has a net income of $1.2
Topics Related to Monopoly of the Postal Service
United States Postal Service, Economy, Business, Mail, Advertising mail, Monopoly, Rural letter carrier, Post Office Ltd, Cream skimming, Canada Post, John E. Potter
Essays Related to Monopoly of the Postal Service
Andrew Jackson, the seventh president of the UniteAndrew Jackson, the seventh president of the Unitedstates, was born on March 15, 1767, in the Waxhaw settlement on the western frontier of South Carolina. Jackson was orphaned at the age of 14 and was brought up by his uncle. Jackson was born into a poor family. When his parents died, he went to live with his Uncle, who was a wealthy slave and land owner. As a result, Jackson moved among wealthy people and property owners, who monopolized the prestige and political influence in the back country
In the United States economy most markets can be cIn the UnitedStates economy most markets can be classified into four different markets structures. But, each and every market in the UnitedStates is completely unique from the others. Generally the best type of market structure for the general public is per-fect competition because it creates the lowest possible price for the public. There are some exceptions were perfect competition isnt the best choice for the public on account of various reasons. The UnitedStatesPostalService is one of
Web AdvertisingWeb Advertising annon Web advertising, not to mention the Internet itself, finds itself in a stage of relative infancy and therefore provides marketers with novel challenges and situations which need to be dealt with caution . The realm of Web advertising is unchartered terri tory! In terms of South Africa, the country finds itsef somewhat behind technologically. However, this may not prove to be a disadvantage as the uncertain nature of Web advertising may make a policy of \'watching and learni
Monopoly of the Postal ServiceMonopoly of the PostalService In the UnitedStates economy most markets can be classified into four different markets structures. But, each and every market in the UnitedStates is completely unique from the others. Generally the best type of market structure for the general public is per-fect competition because it creates the lowest possible price for the public. There are some exceptions were perfect competition isnít the best choice for the public on account of various reasons. The United S
Postal Service As a MonopolyPostalService As a Monopoly In the UnitedStates economy most markets can be classified into four different markets structures. But, each and every market in the UnitedStates is completely unique from the others. Generally the best type of market structure for the general public is per-fect competition because it creates the lowest possible price for the public. There are some exceptions were perfect competition isnít the best choice for the public on account of various reasons. The United Sta
The Articles of Confederation was the firstThe Articles of Confederation was the first constitution of the UnitedStates of America. The Articles of Confederation were first drafted by the Continental Congress in Philadelphia Pennsylvania in 1777. This first draft was prepared by a man named John Dickinson in 1776. The Articles were then ratified in 1781. The cause for the changes to be made was due to state jealousies and widespread distrust of the central authority. This jealousy then led to the emasculation of the document. As adopted
Articles of ConfederationArticles of Confederation Articles of Confederation As the first written constitution of the UnitedStates, the Articles of Confederation created a legislature where each state was represented equally. The Congress had jurisdiction over foreign relations with the authority to form alliances and make treaties, make war and peace, sustain an army and navy, coin money, establish a postalservice, create admiralty courts, and settle disputes between states. Thus, the power vested in Congress allowed
Morse TelegraphMorse Telegraph Morse Telegraph In the beginning of the industrial age, cities were expanding and railroads were growing, but people couldn\'t get messages or news to other people fast enough. There were some electrical communications, but all were to slow or to complicating. Railroads were growing to fast, they were connecting cities to each other, and there needed some form of communication of some sort fast enough to past messages around. That is what Morse system of telegraphy did. In the ea
The Beginning of the End for the Postal MonopolyThe Beginning of the End for the Postal Monopoly The Beginning of the End for the Postal Monopoly The PostalService has been a government agency since 1775, and since 1872 it has been illegal for anyone but government employees to deliver a letter. Because of this and many other reasons, the USPS is a prevalent example of a government-controlled monopoly. The UnitedStatesPostalService is the largest postalservice in the world. With over 800,000 employees (778,171 being part-time lobbyists),
The history of the Smithsonian Institution and it'The history of the Smithsonian Institution and it\'s founder, has truly had an impact on what the elaborate, extensive, and complete Smithsonian Institution looks like today. The Smithsonian Institution began when James Smithson, an extremely intelligent scientist, was born in 1765. James Smithson was born in the South of France to Sir Hugh Smithson, the Duke of Northumberland, and to Elizabeth Hungerford Keate Macie. Smithson graduated from Oxford in the year 1786. After he graduated, he was ac
Computers have changed the world. Along with the IComputers have changed the world. Along with the Internet, advanced telecommunications easier travel. A global community has been created in the past 50 years. Using satellite technology and fiber-optics it is possible to communicate instantaneously anywhere in the world, using the Internet it is possible to use visual-telephones with almost no lag and this technology is available to almost everyone. If there is one field of social change that is on the fast track, then it is the field of techno
Internet PrivacyInternet Privacy Internet Privacy: Is the Internet as safe as everyone says? As every generation comes they bring with them a new invention from cars to television to the telephone the basic existence of man, in my eyes, is to advance both technologically, thus making life better for us all and also scientifically. Man wants to know all we want to be able to answer all the questions out there as every day goes by we get closer and closer to answering some of our questions. Everyday new cures for