Postal Letter

Why does the US Postal Service have a legal monopoly on the delivery of first class letter mail?

Why does the US Postal Service have a legal monopoly on the delivery of first class letter mail? Explain why critics of the US Postal Service argue that privatization of mail delivery would result in a more effiecient allocation of resources for the nation. Do you agree?

Public Comments

1. Check with UPS or FED-EX and see how much they charge to deliver a letter. It will not be .39 cents! The USPS doesn't have a monopoly on deliveries, just on mailboxes.
2. As far as I am aware, companies like UPS and FEDEX can deliver mail as fast as they want...
3. Actually, they do not. Anyone who wishes could enter into the home delivery of standard mail, however, no corporate entity in their right mind would choose to do so. Letter rates, even at their recent rapid incline are a pittance compared to what it takes to truly deliver a piece of mail in any reasonable timeframe. Most foreign countries (which are many times smaller than the US) charge many times what the USPS charges for a standard first class letter. The government subsidizes the USPS and it has not been a profitable venture for as long as it has existed. Now with the advent of e-mail and reduced costs for parcel and overnight delivery, the postal service operating margins are pushing further into the red than ever. FEDEX and UPS are for all intents and purposes already operating a first class mail operation in the form of their 2nd and 3rd day delivery schedules...which costs over $10 to deliver...be careful what you wish for, you may get it!
4. Universal service of the USPS is a core mandate prescribed by the constitution. This means that everyone has the right to send and receive first class mail at the same rate no matter where they live. Private companies could charge less for sending a business type letter within a city, but could charge more for sending a letter from AK to NY. The federal mandate says that each should be treated equally and charged the same rate. The USPS uses no federal tax dollars and must operate on a break even basis.