Today, the united states postal service provides service to american households and businesses six days a week, 52 weeks a year, and delivers over 40 percent of the world's mail the american public reports high levels of satisfaction with its mail service. 2 the basis and extent of the monopoly rights and subsidies claimed by the united states postal service robert j shapiro1 i introduction governments always have compelling reasons to communicate with their citizens, so. Which is an example of a government monopoly in the united states the us postal service the internal revenue service (irs) the us environmental protection agency (epa) the national park service.
The united states postal service is an independent establishment of the government of the united states, created by act of congress to provide mail as a basic and fundamental service to the people. This paper will discuss the budget dilemmas that the postal service has faced for the past twenty years and if it is in the best interest of the economy for the united states postal service to continue as a monopolythe first time there was talk of privatizing the postal service was in1979 when the postal service was losing vast amounts of. Universal service and the postal monopoly: a brief history the united states postal service is the one government agency that touches every american on a daily. The united states postal service has a statutory monopoly to deliver mail to mailboxes, but there are arguments to relax that monopoly this study assesses the public safety concerns of doing so and makes recommendations to address these concerns.
The united states postal service's financial troubles have been well publicized in recent years the worst of it came in 2012, when the usps lost a whopping $159 billion dollars, followed by $4. The united states postal service (usps) has long held statutory monopolies to deliver mail (the postal monopoly ) and to have sole access in delivering mail to the mailbox (referred to as the mailbox restriction . He observed that the mailbox monopoly is the main reason the postal service needs subsidies because in the absence of such a monopoly, the usps would have been obliged to make the same cost-saving gains in productivity as fedex et al have made over the last 25 years.
Usps: a dead monopoly walking the united states postal service was absent from a recent list of dying industries, but should have been included nam y huh / ap / file. View essay - postal service as a monopoly essay from baep 491 at university of texas, brownsville postal service as a monopoly in the united states economy most markets can be organized into four. Today, the united states postal service employs nearly 800,000 workers (mostly unionized) in roughly 38,000 post offices they deliver 200 billion pieces of mail annually its annual revenues of more than $65 billion would rank it number 11 among the fortune 500 companies. The most prominent example of a pure monopoly in the united states is the united states postal service (usps) we have all heard that the postal service is losing money.
Entities such as united parcel service (founded in 1907) exploited loopholes in the law from the early twentieth century onward, leaving the postal service in such financial disarray that the federal government was eventually forced to pass the postal reorganization act of 1970 7 the reorganization act was a massive undertaking, accomplishing. The united states postal service is one of them and since the postal service is a monopoly, it is its own market this paper will discuss the budget dilemmas that the postal service has faced for the past twenty years and if it is in the best interest of the economy for the united states postal service to continue as a monopoly. United states postal service, 2015 26 over the course of the twentieth century, the partnership between the postal service and the mailing industry grew and blossomed. History of postal monopoly 35 the origin and purpose of the monopoly for inland delivery is similarly ambiguous a monopoly was granted by james i in 1609 to john stanhope. Postal service spokesman david partenheimer disagreed with the analysis, saying in a statement on thursday that congress's postal policies are more of a hindrance than an advantage for the.
The united states postal service reliably delivers mail to every home and business in america, providing an important public service without taxpayer subsidy as an independent corporation, it should be free to manage that responsibility with more flexibility. A recent report from the president's commission on the united states postal service recognized these problems and recommends creating a postal regulatory board to supervise the post office this would be a welcome step, but we shouldn't stop there. The us postal service the internal revenue service (irs) the us environmental protection agency (epa) the national park service the united states postal service is an example of an independent agency of the executive branch.
By law, the postal service has a monopoly only for certain items such as first class mail that is because the postal service has an obligation to deliver these items for the same price (the cost of first class stamps for instance) no matter where you send it in the us. The united states postal service as we know it today though was first established in 1691, when the british government granted a man by the name of thomas neale a 21 year contract under the name of the north american postal service. The united states postal service (usps also known as the post office, us mail, or postal service) is an independent agency of the united states federal government responsible for providing postal service in the united states, including its insular areas and associated states. With a few minor exceptions, the united states postal service enjoys a legal monopoly in the delivery of letters under the private express statutes, private letter carriers are subject to fines and/or imprisonment.
The letter delivery monopoly and the mailbox monopoly and, more broadly, about a variety of laws that apply differently to usps and its private delivery competitors such as united parcel service (ups) and.