I really don't understand the justification for withholding operational data like this. We are trying to make the job of the USPS easier with these tools. It's a lot cheaper and faster for everyone involved if I can query the database while the customer is still standing in front of me.
This isn't really accurate. USPS had a break even (not profitability) legal mandate since 1970-2006. They would adjust prices each year to hit break even. And that's what happened - they roughly broke even each year.
After a 2006 with broad bipartisan support, the UPS was able to make a profit (not just break even) but a price cap was added (to be reviewed every 10 years). They couldn't raise costs beyond inflation. A stamp to send to anywhere in the USA - anywhere (Alaska, Guam, etc.) - currently costs 82 cent. The postal union is against this, usps management is against this, and business mailers are for it. Dont you love all the ads USPS delivers you?
They have not been break even since 2007. They currently lose about $9B/year with $2.7BM being controllable and the rest largely being pensions, retiree health plans, and workers comp charges. Their core business (mail) has been declining for 20 years and no end is in sight. In 2020 they loosened the cap a bit (allowing USPS to raise prices). Business mailers tried to sue them but lost.
So this attitude that they should just lose a bunch of money and be backstopped by the taxpayer, when mail is less critical than ever, is an recent idea and is aligned with business mailer lobbying interests. It seems obvious to me that they should just go back to the break even mandate.
Not when combined with the idea that spam mail senders should be legislated out of legality.
Also the 2022 Postal Service Reform Act eliminated the prefunding and ~$57 billion of overdue payments, but USPS finances were still dogshit afterwards: USPS revenue was $80 billion and expenses were $89 billion in FY2024
The (non-navy) military has no constitutional mandate at all, it’s an industrial scale cash incineration device which the postal service can’t hold a candle to, and we don’t blink at it wasting 10x or more of the postal service’s opex.
No because they are still deep in the red, about $9B a year.
True, but isn't this because everyone knows that USPS is a dying business already?
I was confused by this until I realized you are missing some logical steps in your (accurate) argument.
The 2006 law took away the safety net (ie the ability to charge whatever is needed to break even).
The “you can now make a profit” rule actually made it HARDER since it came with a price cap.
It told the USPS: You can keep any profits you make, but you cannot raise prices above the rate of inflation to get them.
This forced the USPS to absorb rising costs through internal efficiency rather than passing the bill to mailers
By no means was I implying that the ability to profit means they did profit. Im just stating what the law was.
but that "value of being cheap" is provided to the people using the mail (or other delivery services) for that transaction; it does not benefit people who are not involved in the transaction but have to pay the subsidy. The economy operates most efficiently when things cost what they should or as close as possible.
what Microeconomics is about is calculating what is cost efficient and what is not; free mail services are not; less free mail services are not; rationally priced mail services are.
I personally get a massive benefit from USPS being cheap, despite the fact that I send no mail. It provides a massive low-cost physical delivery network across the country, with service to every address. This is a benefit to me because it makes business and personal communication simple and reliable. If I need it personally, it's there. If I don't, I still rely on thousands of parties who do.
Your position is like claiming the interstate system is useless because you don't have a car, ignoring how all those goods your life relies on actually get to you.
The unintended consequence of this is all the junk mail that makes regular mail a horrible experience to interact with.
Raise the prices , remove the spam.
Would take way more than one letter to make USPS profitable.
Their core business has been declining for the past 20 years and business mailer lobbyists work very hard to keep the current price caps. This idea that we should let the finances spin out of control and raise taxes is a recent idea.
Standard communication (including addressing) is such a basic, critical function of government that it only makes sense to do it at scale and just fund it with taxes.
Your approach leads to exploding federal budgets, which are already the bane of the US, Canada, and the EU. When will you learn? Everything is not the exception, everything is the problem.
Speaking for a patchwork of samples that have fascinated me in the U.S.—New developments tend to incur impact fees to offset their immediate effects on the roads, sewers, and sidewalks. Police charge a fee to connect your alarm system to their dispatchers, an hourly wage for an off-duty cop to stand guard at your commercial premise, and a fine if you waste their time with false alarms… in some cases they attempt, at least notionally, to recoup the cost of the investigation from criminals upon conviction (I hear the collections rates are unimpressive…). Heck, some places bill inmates for each night in jail! [0]
Fire services tend to send you a bill for a false alarm, a fee for an inspection and, if you did it on purpose, a criminal charge plus the full cost of the response. And lord forbid you accept EMS services…
All are tax-funded, but all gesture at apportioning costs in relation to use. If they send this much junk mail while it’s quarters-a-pop, how much would they send if it were free…
[0] seriously! https://www.flsheriffs.org/uploads/Subsistence%20Fee%20Final...
Comparing today to 40 years ago: as far as I can tell, letter mail is virtually always used for the purpose of transacting business these days. Forty years ago, it was used for business and personal purposes. If I wanted to communicate with family on the other side of the country, it was more likely than not done by mail. Even 25 years ago, a long distance call took some thought because it was charged by the minute. These days, at least in Canada, all but the cheapest of mobile plans comes with nation wide long distance and we have the Internet. Both services are available for less than basic phone service back then.
Parcels are a different story. I can't guess how people's personal habits have changed, but the business front is very different as far as I can tell. Mail order was the exception in urban areas back then. It would have been different in rural areas, but in my explorations of the country I discovered that some towns were places where people lived while other towns were regional hubs for businesses. There would have been some mail order and a lot of doing without, but I suspect it has seen a shift where proportionally more parcels are commercial in nature. On top of that, the standards for delivery have changed. When I was a kid, it could take weeks to receive something via the postal service (from across the country). Now shipping times are more aligned with couriers.
I realize there are economic benefits to subsidized mail, but I'm not sure that subsidizing businesses should be a priority.
Maybe some amount of messaging connectivity, for a narrow set of cases like court summons and other official messages, could be run as a public service at the taxpayers' expense. But likely the bulk of it should be run as a paid service, either regular businesses, or/and non-profits that still are expected to break even.
However municipalities should be allowed to, not forced to [or not].
I don't know why the taxpayer should subsidize fintechs.
Most of this address data is made available in order to enable pre-sorting of mail, which makes the job of the USPS easier. Presorted mail can also have a lower mailing cost, but I wouldn't be surprised if the USPS doesn't pass on all of the savings.
So then GPS and the Internet can go away then.
One of the development methods for new technologies in the United States for a long time has been the federal government creating projects that fund long term research, often that create multi-use technologies.
We can help the USPS by using a very cheap API to ensure that data we are entering into bank core systems is accurate.
Yes, the entity is for-profit. The bank is for-profit. Everyone is for-profit. Who gives a shit. This isn't a zero sum game. Everyone can win, including the USPS and the taxpayer.
There is a ideology of some people that think that taxes are a magical way of funding anything they feel is a common good. Most of the time these are well intended thoughts of public good. However they NEVER take into the account the unintended consequences of their ideas. It stops with tax more = more public good.
>LICENSEE shall use the Database and Data for the Permitted Use only and shall not disclose, release, distribute, or deliver the Database or Data, any portion of the Data or Database, or any other information derived from the Data or Database to any third party without LICENSOR's prior written consent.
How the heck are you supposed to do anything with it if you're not allowed to produce results that are derived from it somehow??