Sunday, April 1, 2018

It's the Post Office's problem

President Trump was bashing Amazon the other day. Among other things, he said the US Post Office is losing $1.50 on every parcel Amazon sends by mail.  And it's all Amazon's fault.
I beg to disagree. 
   If the Post Office is losing money on Amazon's business, it's up to the Post Office to either improve efficiency, or raise prices.  It isn't Amazon's duty. 
   As a matter of fact, back in the 19th century, when Congress authorized the Post Office to offer Parcel Post,  the original legislation demanded the Post Office set rates high enough to cover costs.  Probably because Congress didn't want to subsidize the big mail order companies of the day, Montgomery Ward and Sears Roebuck.   Sixty years later some business writer commented that the Post Office would never offer much competition to Fedex and UPS because of it's inefficiencies and high wages.   

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