The Postal Service Monopoly :: Economy

The postal return Monopoly In the unify States saving most securities industrys nookie be classified into four different markets structures. But, each and every market in the United States is completely unique from the others. Generallythe best fount of market structure for the general public is per-fect controversy because it creates the lowest realizable pricefor the public. There are some exceptions were perfectcompetition isnt the best choice for the public on account ofvarious reasons. The United States postal Service is one of themand since the postal Service is a monopoly, it is its feature market.This paper will discuss the budget dilemmas that the postal assistance has approach for the past twenty years and if it is in thebest interest of the economy for the United States Postal Service tocontinue as a monopoly. The root time there was talk of privatizing the Postal Service was in 1979 when the Postal Service was losing vast amoun tsof money in the long run. But since the Postal Service is anecessity for America, the government had to subsidize the servicein order for it to continue in operation. In 1979 the UnitedStates Postal Service had a cash flow of $22.5 Billion and wasadditionally receiving $176 million from investing(1, Intro). up to now with this added revenue the Postal Service was still greatlyunder funded on its own (1, Intro). During this time it wasdiscussed to privatize the postal service and introduce competitionbecause of the extreme losses that the service was experiencing. Apositive argument for privatizing the Postal Service was withnumerous competitors in the market there would be to a greater extentefficiency and the public would receive lower prices. But thiswould also augment the usage of resources, for example airplanes and cars. One of the problems the Post Office had was its receipts from consumer purchases that were submitted the following day after the t ransaction (1, i). If the receipts were submitted earlier the postal service would receive more money because they could invest that money sooner (1, i). other way the Postal Service could increased