The reported 3.8 billion dollar loss from the US Post Office has been a recent talking point of the right. Part of the problem is a lack of efficiency embedded in many bureaucracies, and I think it would behoove Democrats (or anyone in government that believes in government services) to make government programs more efficient, logical, and transparent. But the idea that the post office shouldn't operate at a loss is a bit bizarre. On its face, the factoid can be used to chastise government's inability to "get involved in business", but dig a bit deeper and simple economics shows that if you don't want the loss, the Post Office can simply charge more to send your mail. The "loss" is probably partly due to a failure on the part of management to cope with new realities, but the bulk of that nearly $4 billion is simply a subsidy from the government to make it cheaper to partake in an essential service.
I hear the same argument about Amtrak. As far as I'm concerned, Amtrak isn't supposed to turn a profit--not with the lack of high speed rail infrastructure we have in this country (They turn a profit on what passes for high speed rail from, say, DC to NYC. They lose money on nearly everything else). Affordable train travel is a service, and while at times still expensive, it's nice to know that someone can get on a train and not have their wallets gouged from their clutches just to travel city to city. It would certainly be nice if all of our government programs could break even, but they use tax revenue to operate and to fill those gaps. That's the whole idea of government anyway; to provide essential services. They don't operate on the same business model as Visa. Or, at least they shouldn't.
One lesson from all this is to use the post office. If your tax money is going there anyway, might as well (Mise well, in colloquial Jersian) use them instead of Fed Ex or UPS, or send that letter to a close friend instead of emailing it. Why not?
Corrosive Curiosity.
2 months ago