Monopoly Of The Postal Service

Monopoly of the Postal Service

In the United States economy most markets can be classified

into four different markets structures. But, each and every market in

the United States is completely unique from the others. Generally the

best type of market structure for the general public is per-fect

competition because it creates the lowest possible price for the

public. There are some exceptions were perfect competition isn’t the

best choice for the public on account of various reasons. The United

States Postal Service is one of them and since the Postal Service is a

monopoly, it is its own market. This paper will discuss the budget

dilemmas that the postal service has faced for the past twenty years

and if it is in the best interest of the economy for the United States

Postal Service to continue as a monopoly.

The first time there was talk of privatizing the Postal

Service was in 1979 when the Postal Service was losing vast amounts of

money in the long run. But since the Postal Service is a necessity for

America, the government had to subsidize the service in order for it

to continue in operation. In 1979 the United States Postal Service had

a cash flow of $22.5 Billion and was additionally receiving $176

million from investing(#1, Intro). Even with this added revenue the

Postal Service was still greatly under funded on its own (#1, Intro).

During this time it was discussed to privatize the postal service and

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Monopoly Of The Postal Service

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