The United States Postal Service has strong roots going all the way back to before the Revolutionary War. Today, it is best characterized by its robust system of post offices and distribution centers, and 600,000 strong employment network.
The mail system that has been around for a while is known to be very strong, but what if they started to get some competition? There are two different opinions, one would say that they have a monopoly over the mail and others would disagree.
Is USPS a Monopoly?
The United States Postal Service does indeed have two monopolies, as set forth in Title 39 of the US Code. The first is the letter-delivery monopoly, in which it must deliver all kinds of letter mail, as defined and defined in the law. The second is the mailbox monopoly, in which it must receive all kinds of mail, as defined in law.
The Postal Service is a privately owned corporation that is required by the Department of Treasury to print money and mail letters, but the Department of Treasury still requires the Postal Service to provide services that only a government agency can provide.
To learn more about why the United States Postal Service is still a government agency and not a private company, keep reading below!
What Is a Postal Monopoly?
By “legal monopoly” I mean that the U.S. government gave the U.S. Postal Service legal monopoly over the postal system.
The postal monopoly allows the U.S. mail to serve as the only efficient
and rapid delivery system for letters, newspapers, and other
publications.
They are the “sacred” duty of the postal service because they make us feel as if the USPS exists for us, the people and we can rely on it anytime we need.
The U.S. Postal Service (USPS) is committed to delivering the mail, no matter how remote, and no matter how far from civilization.
If it’s a legal name, USPS will provide an address if they have it.
The private courier got the package from post office. I don’t know what else. Maybe they got the package from UPS, but I never did hear that from FedEx.
This monopoly is granted to the Post Office to ensure that all mail is delivered to its destination. In this case, to “a specified address” which is the Post Office’s address.
When USPS started charging extra for delivering letters and packages, it created a problem for businesses that were already running on a tight budget.
The Postal Act of 2006 was the first law put forth toward The Postal Monopoly; from there, it was further defined by other laws, most recently in 2007.
To know that, one must understand that “mail” is defined as “a message sent or delivered by anyone other than a mail carrier or the United States Postal Service.” Since the mail was delivered by a US Postal Service employee, it is NOT a direct communication with the person to whom it was addressed.
Not many. Letters that weigh more than twelve and a half ounces. Letters that cost six times a Forever stamp.
The monopoly also allows the Post Office to establish prices for services, such as first-class mail. The Post Office also gets to dictate who must use the service and what happens if they don’t.
Email is a great way to communicate, but it can also be a huge burden. Consider that you now have to check your email every time you want to do anything else on the computer. You might check email while you’re doing work or reading a book or watching a movie, but you might not check your email while you’re out and about.
No, I didn’t know that. And I also didn’t know that they don’t want you to put anything into the mailbox. That’s weird.
In 1934, Congress passed a law that only allowed the United States Postal Service to deliver mail, not third-party carriers.
In September 1985, United States Post Office was going to have its USPS Universal Service Program implemented, requiring bills to be delivered. The U.S. Postal Service would no longer deliver bills, requiring the utility company to be contracted for delivery of those bills. With this, the utility companies were cutting into USPS’s USO.
Does USPS Have Competition?
So, this new “Post Office” would make an exception by allowing its own carriers, the Post Office employees, to set prices for their services.
In addition to competing on the ground, both firms also compete in the air. FedEx competes with UPS on international package shipments. And the two firms compete on ground shipments domestically.
When it comes to UPS, I want to know about the fastest way to deliver a package all around the world.
The Postal Service can only legally ship USPS Priority Mail Express (PSPE) packages weighing up to 70 lbs. The USPS can deliver USPS Priority Mail (PSPM) packages to destinations throughout the United States and the world.
FedEx has a specialised focus on overnight shipping in the US.
Yes, it is also important to have a shipping preference, like FedEx. It’s the best option for the special items.
USPS has the upper hand over USPS. But domestically, it’s all about where you’re shipping.
USPS prices are sometimes lower than other shippers, plus they have a money-back guarantee just as good as UPS and FedEx.
The Postal Service also has various partnerships with other shipping companies.
Even though it’s been a while, they’re still on terms with each other.
If you didn’t understand the sentence, try your best to read it again. See how it makes sense?
I’ll explain why.
Also, many businesses offer Priority Mail as an additional service.
Is USPS Still Owned by the Government?
 The president is not in charge of USPS operations, they are controlled by an independent board.  Congress, The President, & The Postal Service each get to appoint four people to the board.
However, there has been talk of taking the USPS out of government hands, putting it into the private hands of a private corporation, and having the government compete with the private corporation for the right to deliver parcels.
I would say the pros are a decrease in cost and an increase in efficiency. The cons would be that competition would force innovation to increase.
The United States Postal Service is no longer a government owned / operated agency, and it would have no responsibility to provide any other service.
The cons? Well, if you look at the chart and you look at the data, the last three months were the worst since the crash. And they’re all coming right now. And we’re getting hit right now with all these problems.
The only people to really benefit from this is the wealthy and those who live in the suburbs, where there is a higher amount of money to be made on the transaction.
I would be really surprised if we didn’t see some mail delivery slowdown in these rural delivery areas.
Farmers, who import livestock from other countries, and people who live in remote areas, who draw checks from the government, would be affected.
If I’m going to pay for your Internet service, and you expect me to pay for your email service for the same speed, and your email is getting slowed down so that that slows down my Internet, then I’m going to get pissed off and you’re going to be mad.
The burden for poorer people and people of color will be greater.
Postal Service leadership is moving in the direction of privatization. They are taking small, but deliberate steps toward privatization.
If this is not a good sign, it certainly shows that we should have more attention here in rural America.
Does USPS Get Money From the Government?
U.S. Postal Service says it will do more to speed up mail deliveries along with a few other proposals. It does not accept taxpayer money as part of its regular operations.
The U.S. Postal Service finances its operations through the sale of stamps, postage, and other products and services.
However, the United States Postmaster General, Megan Brennan, was recently appointed to the position after receiving the Presidential Appointment of the Secretary of Homeland Security, which gives her full power over USPS.
You can get the actual statistics and details from this US Government’s Office of the Inspector General’s report.
The short-run and long-run effects of an increase in USPS funding.
Conclusion
The United States Post Office can hold two legal monopolies, one about letter mail and one about mailboxes.
There is talk of privatizing the United States Postal Service because of financial issues. This plan to move the USPS into the private sector is being discussed, although the government would have to cut a number of jobs and service in the process.
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