By Edward L. Hudgins
As extra humans correspond and pay debts on-line, dramatically decreasing the necessity for letter sporting, what's the position for the Postal provider within the twenty first century?
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Additional resources for Mail at the Millennium: Will the Postal Service Go Private?
S. Treasury. That is why there has never been any concern that the USPS would declare bankruptcy while it was accumulating red ink during most of its history. 43 Users of what are now competitive-market products are at risk, too, because a powerful way to strengthen the entity’s finances is to enact new monopoly restrictions, if the Postal Service can persuade Congress to go along. Legislation Many members of Congress have become concerned about the harmful effects of the Postal Service’s presence in competitive markets.
A containment strategy could be politically practical because it is usually easier to prevent a government agency from entering an area than trying to extricate it after it has already become entrenched. R. 22), introduced by Rep. ), chairman of the House Subcommittee on the Postal Service, seeks to accommodate the Postal Service’s claim that, for its core services to remain strong, the organization must be allowed to expand substantially in competitive markets and operate in those markets with little regulatory oversight.
On the surface, such pricing would seem to safeguard users of the Postal Service’s monopoly products from having to subsidize the Postal Service’s competitive-market products. Cross-subsidization could still occur, however, if (1) some of the costs of a product are misidentified as attributable to another product or (2) if some of the costs of a product are miscategorized as institutional, with the products furnishing the subsidies picking up those institutional costs. The generous share of its total costs that the Postal Service classifies as institutional is consistent with the second method of crosssubsidization.
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