Every other year or so I post that the United States Postal Service government monopoly loses billions while private-sector FedEx and UPS were profitable.
It’s a multi-decade trend now. FedEx and UPS versus USPS. * USPS Loses $15.9 Billion – But Bosses Get Hefty Compensation Raises. * FedEx Income Statement. * UPS International Profit Rebounds.
Is it worth asking again: Why does the USPS still have a government monopoly on first class mail and various other subsidies and immunities?
The answer is that political ideology drives the phenomenon:
* Loser companies in the private sector go out of business—unless they are politically connected and able to wrangle a bailout.
* Loser organizations in the public sector are bailed out routinely.
The USPS employs millions and in addition is a favorite second career for retired military and other government employees. Note that the USPS is now subcontracting to both UPS and to FEDEX at low rates, which means that UPS and FEDEX lobbyists will argue to preserve the status quo. It’s a political landmine.