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The Beginning of the End for the Postal Monopoly

The Postal Service has been a government agency since 1775, and since 1872 it has been illegal for anyone but government employees to deliver a letter. Because of this and many other reasons, the USPS is a prevalent example of a government-controlled monopoly. The United States Postal Service is the largest postal service in the world. With over 800,000 employees (778,171 being part-time lobbyists), it is the US's largest employer. In the past few years, the Postal Service's profits have risen and productivity has declined. This essay will discuss why this is happening, and look deeper into the government-controlled monster that is the Postal Service.

In the 1980's, few scholars focused on the Postal Service, and today there are many. This is because of all of the controversial issues that have been discovered regarding it. The USPS handles over 43% of the world's mail volume, and Japan is in second with 6%. The USPS is also the largest airline shipper in the United States. The USPS delivers about 102 billion pieces of first class mail every year, and 20% of these letters arrive late. The average household gets 24 pieces of first-class mail every week, so almost 5 of these every week arrive late. In New York City in 1998, only


The USPS also spent about $7 million to change their long outdated logo to the "Sonic Eagle" in 1997, and almost $4 billion to put together over 5,000 pieces of automation equipment. The service spent $232.4 million of its $143 million budget on advertising, nearly $90 million over budget. Looks like the USPS thinks the only way to get more business is through numerous advertisements. In 1995, the USPS owed the U.S. Treasury about $9 billion for borrowed money. It is rare for the Postal Service to have more profit then debt. Surely not because they don't make enough, but because they borrow money in immoderation. In fact, when the service turned a profit, like in 1995, it was only the eighth time during 24 years. Currently, the United States Postal Service owes the U.S. Treasury somewhere around $7.3 billion, not much difference since 1995.

The Zone Improvement Plan (ZIP) codes were introduced 1990's; this code added 4 non-required digits, for 9 in all. Since 1958, the price of a postage stamp has increased in 1963. In the early by 825%, and in the last 20 years, that price has increased by 18 cents. On January 10, 1999, postage rates for non-profit organizations increased by an average of 9.6%, while business rates only increased by 1.79%. Is there some particular reasoning for the USPS to pick on non-profit organizations? So far, there is no proof of this.

Postal workers, who are considered unskilled, make over $35,000 a year, and that number keeps increasing. These are very high wages for an unskilled worker. The workers also waste a considerable amount of time. A survey by the Postal Inspection service discovered that the average letter carrier wasted 11/2 hours every day. Basically, 23% of all postal workers time is unproductive. A GAO study found that the average worker takes 50 days of paid leave every year. And sometimes, mail sent with the USPS doesn't even get delivered.

The Postal Service is entirely exempt from complete compliance with the Occupational Safety & Health Administration. Basically, the OSHA may not fine the Postal Service for unsafe working conditions. This should not be, because their employees do a lot of stressful, repetitive tasks. In fact, in 1994, Postal Employees counted for 29% of federal agencies working compensation claims. Also that year, the service paid over $521 million in workers compensation claims, death benefits, medical expenses, and other expenses.

52% of the mail were delivered on time. Swimming champion Mary Meager had her pa

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Approximate Word count = 1687
Approximate Pages = 7 (250 words per page double spaced)


  

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