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Monopoly of the Postal Service

nternational revenues of $1.2 billion by twice the amount in the next five years and ten-fold by the year 2005 (#5, 1). The Postal Service is continually working to "streamline" their operations for the future that they are now run-ning. The Postal Service is continualy looking to cut back on borrowing money. All of the recent financial borrowing has been through the Federal Financing Bank, but the Postal Service now is looking into outside sources, such as bonds in the public markets (#5, 2). Business are starting to get jealous of the Postal Service because of the great prof-its it is experiencing. The Postal Service is now making a major impact on the United States Economy (#6, 1). Business are pointing out that in 1995 the Postal Service had records of $1.8 billion in net income and a 1.7 billion dollar debt reduction (#6, 1). The $54 billion revenue that the Postal Service is bringing in would put them in 12th place on the Fortune 500 list and 33rd on the Fortune Global 500, with the worlds largest corpora-tions (#6,1). A recent study showed that domestic direct mail sales were at $333 billion in the year 1994 (#6,1). This figure is expected to reach over $500 billion by the year 2000 (#6,1). It can be seen throughout this paper how the United States Postal Service in-creased profits and does not have to borrow as much money as before. It seems that the Postal Service is doing just fine while it is a monopoly. But there are still two arguments for and against the Postal Service continuing to remain a monopoly. On one side compe-tition is thought to make industries in the market more efficient and practice more innova-tive (...

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