In a free market, private businesses succeed or fail based on their ability to provide goods and services at prices that consumers are willing to pay. That rewards companies that meet consumer demand and encourages competitors to find ways to provide goods and services more efficiently, to attract customers.
But what about the U.S. Postal Service? Its functions are provided for by the Constitution. But it’s neither entirely a government agency, in the usual sense, nor really a private business. Some call it a “quasi-government” agency.
That makes it a bit tougher to know what to do about the fact that the Postal Service is suffering massive losses — including about $8 billion last year.
Should taxpayers have to pony up the money to put the Postal Service in the black? Should the mail run on fewer days per week? Should stamp prices increase again?
Those are debatable points, but the Postal Service has chosen to deal with its huge budget shortfall in part by closing up to 3,700 post offices around the country.