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The USPS is getting really difficult as a vendor for fintechs to work with. They recently changed the pricing around address verification as well (it used to be free).

I really don't understand the justification for withholding operational data like this. We are trying to make the job of the USPS easier with these tools. It's a lot cheaper and faster for everyone involved if I can query the database while the customer is still standing in front of me.

USPS is in a strange boat where a lot of people insist that it must be profitable, much like UPS or Fedex, while failing to realize the value it provides to the rest of the economy by being cheap. Last time I had to physically mail a check I was shocked that it costs 10-20x as much to use UPS or Fedex than it did for the USPS.
>USPS is in a strange boat where a lot of people insist that it must be profitable, much like UPS or Fedex

This isn't really accurate. USPS had a break even (not profitability) legal mandate since 1970-2006. They would adjust prices each year to hit break even. And that's what happened - they roughly broke even each year.

After a 2006 with broad bipartisan support, the UPS was able to make a profit (not just break even) but a price cap was added (to be reviewed every 10 years). They couldn't raise costs beyond inflation. A stamp to send to anywhere in the USA - anywhere (Alaska, Guam, etc.) - currently costs 82 cent. The postal union is against this, usps management is against this, and business mailers are for it. Dont you love all the ads USPS delivers you?

They have not been break even since 2007. They currently lose about $9B/year with $2.7BM being controllable and the rest largely being pensions, retiree health plans, and workers comp charges. Their core business (mail) has been declining for 20 years and no end is in sight. In 2020 they loosened the cap a bit (allowing USPS to raise prices). Business mailers tried to sue them but lost.

So this attitude that they should just lose a bunch of money and be backstopped by the taxpayer, when mail is less critical than ever, is an recent idea and is aligned with business mailer lobbying interests. It seems obvious to me that they should just go back to the break even mandate.

>The postal union is against this, usps management is against this, and business mailers are for it

I was confused by this until I realized you are missing some logical steps in your (accurate) argument.

The 2006 law took away the safety net (ie the ability to charge whatever is needed to break even).

The “you can now make a profit” rule actually made it HARDER since it came with a price cap.

It told the USPS: You can keep any profits you make, but you cannot raise prices above the rate of inflation to get them.

This forced the USPS to absorb rising costs through internal efficiency rather than passing the bill to mailers

Yes, thats exactly right. The ability to profit was granted and they were kneecapped by the price cap. They haven't profited since the legislation and immediately started incurring large losses. That's all in my comment already.

By no means was I implying that the ability to profit means they did profit. Im just stating what the law was.

I didn't know what your point was either..
Yes, it's the price cap which is the issue.
In 2006 a law was passed requiring the USPS to fund pensions far in advance, a requirement no other business had, which instantly put them deep in the red. This wasn't fixed until 2022. But it was just this phony accounting that messed them up, more than the other factors you mention.
>In 2006 a law was passed requiring the USPS to fund pensions far in advance, a requirement no other business had, which instantly put them deep in the red. This wasn't fixed until 2022.

No because they are still deep in the red, about $9B a year.

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>a requirement no other business

True, but isn't this because everyone knows that USPS is a dying business already?

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Some would say it’s the unfunded pensions that are the phony accounting
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It would be great to raise prices on spam business mailers without raising prices on normal people
They sort of do this by having the spam business mailers package/submit in ways which cost USPS less to deliver, and the discount is less than the savings. Also covers fixed costs due to volume, which is important due to universal service obligation.

(I have all my mail sent to a CMRA and basically never see any of this stuff, though.)

Totally. It's 90% of the mail. It's junk.
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> So this attitude that they should just lose a bunch of money and be backstopped by the taxpayer, when mail is less critical than ever, is an entirely new idea and is aligned with business mailer lobbying interests.

Not when combined with the idea that spam mail senders should be legislated out of legality.

If USPS could set whatever price they wanted on business mailers they could completely price them out or make them pay more for it.
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The US does a terrible job at explaining the benefits of departments like the USPS.
>while failing to realize the value it provides to the rest of the economy by being cheap

but that "value of being cheap" is provided to the people using the mail (or other delivery services) for that transaction; it does not benefit people who are not involved in the transaction but have to pay the subsidy. The economy operates most efficiently when things cost what they should or as close as possible.

what Microeconomics is about is calculating what is cost efficient and what is not; free mail services are not; less free mail services are not; rationally priced mail services are.

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This is how it works in Denmark. A letter costs 23DKK ($3.44) within this small country. A fast letter is 36DKK ($5.39).

I think I've received two letters in the last year. I haven't received any individual junk mail letters.

The letter volume last year was 90M for 6M people, so about 15 each. I assume elderly people and others who have opted out of receiving government and business mail digitally drive that number up.

(Someone still delivers a bundle of leaflets from local businesses all together every month or so, and a local newspaper, but I don't think it's the postal service. Every home gets the same bundle.)

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The people in charge think USPS should be ran like a business, not a public service.
Congress has mandated that USPS has to be self-funding. If the leadership at USPS fails to raise revenue, they are forced to cut services. You could write a letter to your senator.
Less junk mail? Junk mail only 5 days a week instead of 6? Sounds like a good deal to me!
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>You could write a letter to your senator.

Would take way more than one letter to make USPS profitable.

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Write to tell your senator to have USPS pay for unlimited usage of their service/data by other companies?
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Should email be also run as a public service, not a business?

Maybe some amount of messaging connectivity, for a narrow set of cases like court summons and other official messages, could be run as a public service at the taxpayers' expense. But likely the bulk of it should be run as a paid service, either regular businesses, or/and non-profits that still are expected to break even.

Not just email but internet as a whole should be run like a public utility, electricity as well. It's US centric to think everything needs to be private.
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Nobody I knows wants a Federal government provided internet service.

However municipalities should be allowed to, not forced to [or not].

Perhaps we are entering an era where it should be.

Comparing today to 40 years ago: as far as I can tell, letter mail is virtually always used for the purpose of transacting business these days. Forty years ago, it was used for business and personal purposes. If I wanted to communicate with family on the other side of the country, it was more likely than not done by mail. Even 25 years ago, a long distance call took some thought because it was charged by the minute. These days, at least in Canada, all but the cheapest of mobile plans comes with nation wide long distance and we have the Internet. Both services are available for less than basic phone service back then.

Parcels are a different story. I can't guess how people's personal habits have changed, but the business front is very different as far as I can tell. Mail order was the exception in urban areas back then. It would have been different in rural areas, but in my explorations of the country I discovered that some towns were places where people lived while other towns were regional hubs for businesses. There would have been some mail order and a lot of doing without, but I suspect it has seen a shift where proportionally more parcels are commercial in nature. On top of that, the standards for delivery have changed. When I was a kid, it could take weeks to receive something via the postal service (from across the country). Now shipping times are more aligned with couriers.

I realize there are economic benefits to subsidized mail, but I'm not sure that subsidizing businesses should be a priority.

Well, serving it costs money for USPS. And, come on... you're not trying just to make the job of the USPS easier here. This adds value to your product, and you're a for-profit entity.

I don't know why the taxpayer should subsidize fintechs.

Verified addresses (CASS & friends) receive automation discounts. These save taxpayer money by reducing delivery exceptions.

We can help the USPS by using a very cheap API to ensure that data we are entering into bank core systems is accurate.

Yes, the entity is for-profit. The bank is for-profit. Everyone is for-profit. Who gives a shit. This isn't a zero sum game. Everyone can win, including the USPS and the taxpayer.

I give a shit; I want costs and incentives aligned as closely as possible, and that means not shifting the cost of things to the taxpayer in a way that ensures there will both never be competition, and the true costs are not borne by the people who actually incur them.
The people arguing against you are not going to see it your way.

There is a ideology of some people that think that taxes are a magical way of funding anything they feel is a common good. Most of the time these are well intended thoughts of public good. However they NEVER take into the account the unintended consequences of their ideas. It stops with tax more = more public good.

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If this was about serving costs they wouldn't have terms like this in their license:

>LICENSEE shall use the Database and Data for the Permitted Use only and shall not disclose, release, distribute, or deliver the Database or Data, any portion of the Data or Database, or any other information derived from the Data or Database to any third party without LICENSOR's prior written consent.

> Or any other information derived from the Data or Database

How the heck are you supposed to do anything with it if you're not allowed to produce results that are derived from it somehow??

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> And, come on... you're not trying just to make the job of the USPS easier here.

Most of this address data is made available in order to enable pre-sorting of mail, which makes the job of the USPS easier. Presorted mail can also have a lower mailing cost, but I wouldn't be surprised if the USPS doesn't pass on all of the savings.

> I don't know why the taxpayer should subsidize fintechs.

So then GPS and the Internet can go away then.

One of the development methods for new technologies in the United States for a long time has been the federal government creating projects that fund long term research, often that create multi-use technologies.