Millions rely on the Postal Service for daily needs. Recent polls confirm that 91 percent of Americans living in rural communities strongly agree that the Postal Service is an “essential service,” and 94 percent say that mail and package delivery services are vital.
These results are not surprising. In many parts of the country, the Postal Service, which delivers to every doorstep every day, is an essential part of the nation’s economic infrastructure, helping small- and medium-size businesses ship and receive goods at affordable rates and assisting consumers to connect to the digital economy.
There have been arguments that expanded internet access can substitute for affordable delivery services; however, businesses and consumers in rural America know better.
The Postal Service is a lifeline for rural Americans because it is the only affordable delivery service that ensures citizens receive mail-order medicines, and businesses and consumers receive essential goods. Expanded internet access is necessary, but large swaths of the country will be left further behind in an e-commerce economy if they do not have access to affordable delivery services, not to mention the growing demand for package delivery services and the shift to online retail.
There are arguments that the Postal Service’s package delivery business harms the free market, but that is incorrect. Congress mandated that the Postal Service provide affordable package delivery services at the turn of the 20th century because private express delivery companies were exploiting rural businesses and consumers. One hundred years later, remote and rural areas of the country are still without affordable delivery alternatives. If the Postal Service is “dismantled,” there is no good reason to expect a different result.
Forcing the Postal Service to exit the package delivery services market would reduce competition and harm businesses and consumers who would be forced to pay higher prices to private delivery companies.
Despite declining letter mail volumes, the Postal Service’s package delivery business has been a bright spot. Last year, package delivery services generated $9 billion in profit for the Postal Service, helping to defray the costs of maintaining a nationwide delivery system. One of the reasons the Postal Service’s package business has been so successful is that the Postal Service can offer lower prices for package delivery services because it already visits every house, every day.
Furthermore, there is a belief that taxpayers are subsidizing the Postal Service, but that could not be further from the truth. In fact, since 1970, the Postal Service has funded its operations through the sale of postage, not tax dollars.
The Postal Service has a proud history and an enduring role as a part of the nation’s critical economic, social and political infrastructure. For these reasons, it is crucial to meet the challenges confronting the service rather than giving up. One place to start is by focusing the Postal Service on its essential function of final-mile mail and package delivery services to reduce costs and improve service performance.
