vwcorvette (Forum Supporter) said:
pirate said:
Well USPS doesn't rely on making a profit to stay in business. UPS and FedEx have to make a profit to stay in business so they have to be efficient. USPS Priority Mail has a much better reputation for reasonable delivery.
USPS is not a business. It's a federally funded service of your government. In that regard no different than the military. They don't make a profit either I might add.
Yes and no. It is an independent agency of the executive branch. From Wiki:
...and was transformed by the Postal Reorganization Act of 1970 into the United States Postal Service as an independent agency.[5] Since the early 1980s, many direct tax subsidies to the USPS (with the exception of subsidies for costs associated with disabled and overseas voters) have been reduced or eliminated
So, it began as a government agency, became independent in 1970, and now derives the preponderance of it's operational budget via generating its own revenue.
From Quora:
Is the USPS subsidized by the U.S. government?
No. it is subsidized by the sale of postal products and the delivery services you receive for free. It's a long time myth that the USPS is Government subsidized by taxpayer dollars.
From Dennis Copeland, Federal Technology Policy office:
Is the USPS subsidized by the U.S. government?
NO, not in the traditional sense. The USPS revenue comes from their business operations, not from taxpayers. However, they DO receive a benefit in the form of being able to borrow at favorable rates, by having restrictions on other companies being able to handle 1st class mail, and a few other ‘benefits’. BUT there are all kinds of things that are actually the OPPOSITE of a subsidy from taxpayers. Here are a few:
- When the federal government allowed other businesses to handle the package business (DHL, FEDEX, UPS) these companies took the most profitable business and left the USPS with the least profitable - delivery to EVERY household, regardless of the cost of delivery. My favorite example is that the Havasupai tribe that lives on the floor of the Grand Canyon, receives first class mail and packages (for a regular stamp price), by USPS mule train - no private company wants this business… or any business for 50cents to every door in America - no matter the distances between the customers.
- The congress has forced the USPS to FORWARD FUND pensions very far into the future (no company does this). There are people that haven’t been born or hired by USPS yet, for which the USPS is required to lock up their pensions.
- Universal delivery: USPS is required to provide door-to-door, end-of-driveway service to EVERY household in the US, for the price of first class stamp.
- The congress will not allow USPS to close those money losing, dinky post offices all around the nation, primarily because they are jobs for the localities… not because it’s efficient, or cost effective.
So in many ways the USPS has the WORST of both worlds, the congress controls what they can do and must do, yet forces them to do business whether it’s profitable or not. AND the congress also works to keep the price of USPS’s services low, including the price of stamps
So, although it was established as a government office, it is now a non-profit independent organization which is still under the regulation of the government. They're like a teenager who got kicked out of the house and cut off from the money, but they still have to follow their parents' rules.
