Thursday, October 20, 2005

USPS

I heard on the radio recently that the US Postal Service will be raising their rates once again. I have had a problem with this for a few years now. I have even written my Congressional Delegation several times on this issue. Many people don't realize that the Post Office is not a branch of the our government. Instead, like AMTRAK (Passenger Trains), The Postal Service is a government owned corporation.

Here is my issue with the rate hikes. The Postal Service has been competing for many years now with several privately owned corporations for the overnight delivery market. My question is why? Why in the hell does the USPS finfd the need to get into the ring with the likes of FEDEX, UPS, Emory, and newcomer DHL. Doesn't the market for this type of service seem to be flooded already with plenty of providers? Healthy competition between these companies is enough to keep the prices down without a Government owned company having to step in.

The other issue I have is the advertising and sponsorship the USPS undergoes. Just last night on my drive, I was listening to ESPN Radio's coverage of the NLCS. Guess what entity was credited with 'bringing the game to you'? The USPS!

The USPS also used to sponsor Lance Armstrong's racing team. Why? Why does the the USPS need to sponsor a bicycle racing team in France? Do the French use the USPS everyday? Are the French really interested in US Mail services? Where is the return for the investment? (Nothing against Lance)

I think that if the USPS would stick to delivering mail, and bulk packages like they did before they entered into the overnight market, we wouldn't have the excess spending, nor would we have rate hikes every two years.

In 1988 it cost 20 cents to mail a letter. It shouldn't cost double that amount today.

Something for you to think about.

4 Comments:

Blogger BFuniv said...

I agree.

The USPS tries to undercut UPS, Fedex, and DHL, and raises the prices on their letter monopoly to do it.

I think it is time to take the USPS private. I believe it will happen toward the end of the next deep recession or depression.

Another thought; if you are in a contract negotiation, tie the cost of inflation to postage rather than the CPI.

5:00 AM  
Blogger Tall Molly Man said...

Thanks for the advice, but with the way the cost of living keeps rising, I believe keeping our COLA is the way to go.

5:04 AM  
Blogger Miladysa said...

I agree too, the same thing is happening with the Royal Mail.

5:24 AM  
Blogger ladylongfellow said...

It's not just the post office raising prices. EVERY company is raising prices -WHY... because dumb consumers just PAY it.You need it...you pay for it! As long as people are willing to pay..GREED...comes into play. You want to complain about something? Complain about utility companies?

10:20 AM  

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