Postal service’s pricing methodology upheld by appeals court

[dealmaker]

Postal service’s pricing methodology upheld by appeals court

The U.S. Postal Service’s method to set prices for competitive services was upheld by the U.S. Court of Appeals for the District of Columbia Circuit last week. The ruling comes in the wake of President Donald Trump’s assertion that USPS doesn’t charge Amazon.com enough to deliver its packages. (www.ttnews.com)

 

[cdcaveman]

The postal service isn't really subject to market forces as it has special privilege and is subsidized...it is just another obsolete sect of the government continuely getting priced out of use..

 

[Superstar2317]

The postal service isn't really subject to market forces as it has special privilege and is subsidized...it is just another obsolete sect of the government continuely getting priced out of use..

Subsidized by whom? It is self-funded by stamps and services. In fact, in the 60's or 70's it paid back every taxpayer dollar it ever borrowed. If they government stayed the $#& out of it it's be a highly profitable entity making billions. In 06' Congress decided to make them pre-fund 50yrs of benefits of which they raided. It's why they're unprofitable as they have these $5B payments...take out that stupid requirement and it'd make $2B+ or more. Special privilege only means they get to deliver mail but also required to stop at each mailbox...not a great deal with mail volume down significantly.

 

[truetype]

A monopoly that *loses* money. Rewrite the economics textbooks!

 

[cdcaveman]

its a government run POS... it can't go out of business if it makes bad decisions or isn't useful anymore... its a socialistic drag

 

[Sig]

its a government run POS... it can't go out of business if it makes bad decisions or isn't useful anymore... its a socialistic drag

You were directly asked to support your statement about subsidies, which you couldn't because it was incorrect. Can you support this statement, or do you just keep throwing out crap without regard for accuracy or any knowledge of wtf you're talking about? The only annual appropriation to the USPS is a tiny amount that subsidizes service to the blind and overseas voters. That's it. The rest is entirely self-supporting. How is that a "socialistic drag" again? We need to let those blind a-holes fend for themselves?

 

[Sig]

A monopoly that *loses* money. Rewrite the economics textbooks!

Can you imagine being told that you have to run a business that receives no government support, it's not a monopoly and in fact companies like Fedex and UPS can pick off the lucrative pieces that you used to use to cross subsidize the mandatory service, and that mandatory service is to send a letter anywhere, absolutely anywhere in the U.S. or any of it's territories from American Samoa and Guam to Alaska to Florida, for $.50, oh and god help you if you try to stop Saturday delivery because Congress can tell you no, oh and every pricing decision you make get's challenged in court...If that's what you call a monopoly then monopolies suck big time for the monopolist!

 

[cdcaveman]

http://amp.timeinc.net/fortune/2015/03/27/us-postal-service

The idea that the post office is doing something of value is not being argued it's that it's taking away funds from taxpayers to support itself.. just because it ran a profit or broke even one year doesn't mean anything..read the article above.. I don't know what your biases and why you are so adamant about supporting the post office it is not subject to free prices like every other company is.. essentially it can run up a deficit and be bailed out by the taxpayers just like the banks

 

[userque]

it's that it's taking away funds from taxpayers to support itself..

Assuming that's true ... so does the whole US government. That's what taxes do; they pay for governmental services.

it is not subject to free prices like every other company is..

That's because it's part of the government. Do I need to give examples?

essentially it can run up a deficit and be bailed out by the taxpayers just like the banks

No, banks are for profit. CEO's with huge salaries.

Name one department of the government that has been operating at a profit? So, who's bailing the non-postal parts of the government out?

By your logic, we should just shut down the government, because it's not turning a profit.

...

Amazing.

 

[cdcaveman]

You're exactly right that is my Logic the government is not subject to the pricing of the free market and therefore is inherently inefficient.. like my dad always told me be happy you're not getting all the government you're paying for