THE Founding Fathers thought that operating a postal service was a crucial responsibility of the federal government. The structure allows Congress a monopoly on delivering post. Today the United States Postal Service (USPS) is the third-biggest employer in America,behind Walmart and the Defence Department. For most of the country’s history, USPS provided the arteries along which information flowed.
Not any more. The number of first-lesson letters has fallen by almost half from its peak in 2001, or as communication has migrated to the internet. approximately half of what still lands in letterboxes is advertising. USPSs revenue from its monopoly is down by 35% in real terms since 2008. Seeking a survival strategy,and with online shopping booming, the post office is focusing on delivering parcels. But it has no monopoly in this commerce, and its network was built for letters. Parcels still comprise less than a third of revenue. Competition from the likes of UPS,FedEx and DHL means that USPS is...
Continue reading
Source: economist.com