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.