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Macro Economics
The Myth about the Postal Service

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By Pituophis
August 5, 2009

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But when people really want a package to get there and want a guarantee, they send it by FedEx at greater cost.

There's another one - I've never in my life had a letter or package that I've sent or that has been sent to me lost and rarely had one take longer than the estimated time (mostly much shorter), but I'm only 58, I guess it could still happen.

I am at a complete loss to understand how anyone can use the US Postal Service as an example of a wasteful or inefficient govt. program. The USPS is a screamingly successful program. The USPS receives NO, that's zero, zilch, nada government funding. That's right - NONE of your tax dollars goes to support USPS operations (though it does receive "pass-through" funds for certain entitlements, such as free postage for the disabled.) Its mandate is to break even, NOT to earn a profit, so under unfavorable conditions, it does sometimes incur losses which have to be made up via expense cuts and rate increases and repaid at a later date. But in many years the USPS has earned a significant profit, going for several years in the early 2000s when it earned over $1 billion per year. As of 2005, the USPS was debt free.

And without ANY government subsidies, you can still send a letter from San Diego to Portland, Maine for less than 50 cents and have it get there in 3 or 4 days or from NYC to Pittsburgh or Dallas to St. Louis in ONE day 99.9999% of the time...hell of deal!

If government run health care is half as successful as the USPS, the U.S. will have the least expensive and most efficient health care in the world.