Don’t Like Amazon’s USPS Deal? Blame Congress

Congress, Not Amazon, Messed Up the Post Office
Legislators passed a law that made the USPS less competitive with the private sector.
Bloomberg, April 4, 2018.

 

 

Before the news cycle gets consumed by the U.S.-China trade war in the making, let’s go back to something I find much more intriguing: the U.S. Postal Service.  Specifically, is Amazon.com Inc.’s contract with the USPS kosher, or is it a sweetheart deal that amounts to a government giveaway?

Let’s get one thing out of the way up front: President Donald Trump’s endless grousingabout Amazon is nothing more than a thinly disguised complaint about the Washington Post, which has done a fine job reporting on his administration, revealing its many warts and ethical lapses. He has made no secret of his hostility, as a brief review of his Twitter posts would show.

But let’s set that aside and try to answer whether the USPS provides an unfair subsidy to Amazon. To better understand these claims requires a fuller understanding about the Post Office.

Let’s start with the USPS mandate: it was formed with a very different directive than its private-sector competitors, such as FedEx Corp. and United Parcel Service Inc. Those two giant private shippers, along with a bevy of smaller ones, are for-profit companies that can charge whatever they believe the market will bear. The USPS, by contrast, is charged with delivering to every home and business in America, no matter how remote. And, they can only charge what Congress allows; increases require approval . . . .

 

Continues at: Congress, Not Amazon, Messed Up the Post Office

 


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