Post Office Competition. Well?

The Missus and I were talking about the comments President Obama made the other day about Fedex/UPS/USPS and competition. Lots of people are laughing about it, but here’s someone breaking it down to levels beyond scientific.

It’s fascinating how it all comes down to the post office, again and again, in the history of public policy. And so it is in our time, with Obama’s admission/gaffe/slip concerning the post office and its analogy to what he wants to do with healthcare.

A long read, but worth it.

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  • Ted

    Scott,

    Here are a couple additional observations for you about Obama’s gaff. First, UPS has been laying off people for a year, reducing labor hours, and tightening up where they can. They are not “OK”. I work at UPS 5 hours a week. Yes, just 5 hours! Why 5 hours? Well, they provide full medical, dental and vision coverage for my family for those 5 hours. Plus $10.something an hour. This is their free market solution to a need they have. They need good, dependable, hard working people to show up for 1 hour of work 5 days a week. In order for them to have what they need, they provide these benefits. So, most of us are self employed independent contractors. It works!

    Also, the Post Office uses UPS to ship letters everyday! They ship next day air, don’t know that they need to, but that is how it comes through us. Management comments all the time how lucrative that business is. They are paying a premium to use a third party carrier!!! Gov’t efficiency at it’s finest. The post office is a good example of what the health care system would look like under obamacare. You think stamps have gotten expensive, just wait to see what Dr. visits, premiums, or taxes will cost.

    If they do pass this legislation, it will have a huge negative impact on UPS. They will lose a bunch of employees and have to restructure their business model. One of many consequences not thought of or talked about.

  • Thanks for the comment Ted!

    I’ve always wondered how it would affect UPS/Fedex’s business if they were allowed to use the same mailboxes the USPS uses.

    What would it REALLY cost to send a letter if they were allowed to complete freely?