USPS, UPS, Fedex Rate Hikes - Hurting Small Businesses and the Economy

Discussion in 'Economy' started by jasanders79, Nov 21, 2009.

  1. jasanders79
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    jasanders79 Rookie

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    How can the economy recover and small businesses succeed with all three (USPS, UPS, and Fedex) increasing their rates?

    The only variable cost the USPS has is gas prices and they went down from 2008. Everything is the same since they go to every mailbox, everyday. On top of that, the USPS reduced its workforce and condensed buildings.

    The USPS is the only company I know that has lost money and lower volume and then thought it was a good idea to raise prices. Every cent the USPS raises their rates, less packages are shipped. Simple supply and demand. Lower prices equals more demand.

    Congress needs to fix the USPS and lower rates for shipping packages. With more and more goods being sold online, lower shipping rates for packages will increase consumers' spending and get the economy moving again.
     
  2. Douger
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    Douger BANNED

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    Wave flag. Praise capitalism.
    The United States Postal Service (USPS). Is it government agency or a private business? It's both.

    "No, the USPS is a Business!
    the Postal Service takes on some several very non-governmental attributes via the powers granted to it under Title 39, Section 401, which include:

    * power to sue (and be sued) under its own name;

    * power to adopt, amend and repeal its own regulations;

    * power to "enter into and perform contracts, execute instruments, and determine the character of, and necessity for, its expenditures";

    * power to buy, sell and lease private property; and,

    * power to build, operate, lease and maintain buildings and facilities.

    All of which are typical functions and powers of a private business. However, unlike other private businesses, the Postal Service is exempt from paying federal taxes. USPS can borrow money at discounted rates, and can condemn and acquire private property under governmental rights of eminent domain.

    The USPS does get some taxpayer support. Around $96 million is budgeted annually by Congress for the "Postal Service Fund." These funds are used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas. A portion of the funds also pays USPS for providing address information to state and local child support enforcement agencies, and for keeping some rural posts offices in operation.

    Under federal law, only the Postal Service can handle or charge postage for handling letters. Despite this virtual monopoly worth some $45 billion a year, the law does not require that the Postal Service make a profit -- only break even. Still, the US Postal Service has averaged a profit of over $1 billion per year in each of the last five years. Yet, Postal Service officials argue that they must continue to raise postage at regular intervals in order make up for the increased use of email."

    Keep waving it. You're getting fucked from all angles.:cuckoo:

    Just to clarify for dem no chillinz B giddin leff behine.
    Over 1000 million dollars a year.
    Of course the guy cleaning the urinals probably gets paid 60 grand...............
     
    Last edited: Nov 21, 2009
  3. Neubarth
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    Neubarth At the Ballpark July 30th

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    If there are only three prostitutes in town, they can coordinate an increase in the cost of services to those who "need" the services.

    I have postulated that a start up company only serving the top ten metropolitan areas could make considerable profit if they advertized that they only served those top ten cities but did so at half of what the other services were asking.

    FedEX and UPS are already corrupted by success and are no longer lean and mean. The USPS is bloated and totally inefficient and not competition for anybody.
     
  4. waltky
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    waltky Wise ol' monkey Supporting Member

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    Drug case may come back to haunt FedEx...
    [​IMG]
    U.S. prosecutors launch review of failed FedEx drug case
    Fri Jul 15, 2016 - The U.S. Department of Justice has begun a rare internal examination of what went wrong in the prosecution of a controversial drug conspiracy case against delivery service Federal Express , the department's top prosecutor in San Francisco told Reuters.
     
  5. Jomama
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    Jomama VIP Member

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    Actually, it happens all the time. I've led dozens of corporate turnarounds and raising prices is always part of the program.

    Read up on demand elasticity. If the world were so simple, dont you think it would be better managed by now?
     
  6. Rshermr
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    Rshermr VIP Member

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    The problem we have is well known among those looking at the issue. Fedex and UPS are huge, corporations, making extremely large contributions to politicians. USPS is mostly governmental. Net is that congress has made life as easy as possible for the FedEx and UPS, and as hard as possible for USPS. It reminds me of seeing a person having his neck stepped on while the politicians scream about the fact that he is doing poorly. It takes a few minutes to understand the main problem for USPS, if you care to. The screaming by the far right is just an attack on what they see as a gov agency. Totally mindless.
    If our politicians can kill usps, we will see an oligopoly with huge monopoly power. Anyone thinking it will be good for the consumer has to be brain dead. And must have never looked at what even capitalist founders said would be a bad plan. Monopoly power is ALWAYS a bad plan. Monopoly power created by politicians is doubly bad. I, from my experience, love usps even with its warts.
     
  7. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    Why not have them fix all of our industries so all prices go way down and we all get rich?
    Did it occur to you that politicans don't have a clue how to do this?
    Politicans don't invent things (most went to law school) so they don't have a clue in a million about how to make the economy more efficient or how to make it supply more new inventions.

    This is what supply side economics is all about, i.e., about not punishing the rich and successful for inventing or supplying new inventions that increase our standard of living.
     

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