Old Arguments for State-Run US Postal Service No Longer Apply
A survey of economists specializing in postal services has found that they recommend that the government-supported United States Postal Service (USPS) be de-monopolized or privatized.
The U.S. government first got involved with the postal services as a way to support the growth of democracy. The more modern defense is cross-subsidization, where the profits in one region can offset losses incurred on less populous routes — ensuring universal service to rural areas. Another defense is that there are economies of scale, with lower average costs, due to the size of the postal service and amount of mail. However, the study concludes that neither of these justifications are valid.
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