Saving the USPS Through Privitization Essay example

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Due to the rising popularity of email and the easiness of scanning documents, less and less mail is being sent every year and because of competitors like FedEx and UPS the United States Postal Service (USPS) is having financial problems. All over the world there has been sweeping postal reform. New Zealand moved to three day mail delivery, Canada eliminated home delivery in cities, and the United Kingdom recently privatized their mail system. The United States Postal office has been losing money and reported a loss of $15.9 billion dollars in 2012. The USPS has been increasing stamp prices to make up for this financial loss, most recently increasing stamp prices from forty-four cents to forty-five. With congressing blocking the latest USPS…show more content…
Congress also imposes various obligations on the USPS, like delivering mail at uniform price throughout the nation, that only make the USPS financial situation worse. While residents see these price guarantees as a benefit, the uniform price guarantee only adds to the financial strain. Now competitors, UPS and FedEx, are providing competition on package delivery services that the USPS cannot compete with, because of Congress, creating greater revenue losses. One of very few benefits the USPS receives from its association with congress is its monopoly over first class and standard mail. With increasing technological advancements that allow Americans bypass the USPS all together makes the USPS monopoly over first class and standard mail delivery obsolete, making Congress even more of an obstacle. Other countries who have repealed the monopoly of their mail services, like New Zealand and Sweden, have shown this competition to be beneficial. The EU moved in 2008 to eliminate monopolies of mail services by 2013 in all member states. Without this monopoly in the United States, other first class and standard mail service companies would be able to participate in the market and perhaps do it more efficiently, driving the USPS towards efficiency also. Also, by privatizing the USPS it would allow the USPS to diversify and expand
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