Monday, November 12, 2007
The Post Office
A few years ago, the Post Office ran a TV campaign (and has for the last few year run by mail campaigns) where they advertised their express mail services. To sell these wares, they borrowed "Fly Like an Eagle" by the Steve Miller Band.
I was completely appalled. The only rationale for advertising here is for the government to increase its market share in the express mail market, in effect competing with the private sector. Not only this, but they were using taxpayer money to advertise (not just production costs and air time, but royalties to Steve Miller). Why would they do this?
As a proponent of free markets, I was appalled (I know I already said that). By the simple fact they are advertising means they are competing. Can anyone say UPS? FedEx? DHL? The government should not be in competition with the private sector! The government exists to fill the gaps in a free market economy. There are consumer needs in our economy that either cannot be supplied by private companies or we would not private companies to supply (law making, criminal justice, defense, etc). But if there are willing suppliers adequately fulfilling consumer needs, the government should not be involved.
So in the case of express mail, with companies like UPS and FedEx providing these services, the government should get out of the business. Instead we have them competing with these companies! And not only that, we have using taxpayer money to take market share away from them. I won't even go into how more effective and efficient private companies are in meeting consumer needs than the government. The Post Office is subsidized from the General Fund, meaning the loss is pushed off to taxpayers as well. So if the Post Office increases its market share, it costs more to taxpayers, and we lose the tax revenue from these companies' profits. BRILLIANT!
We are left with a army of homogenous-looking letter carriers attempting to squash any competition. A more appropriate advertising tune would be the Imperial March from Star Wars.
I was completely appalled. The only rationale for advertising here is for the government to increase its market share in the express mail market, in effect competing with the private sector. Not only this, but they were using taxpayer money to advertise (not just production costs and air time, but royalties to Steve Miller). Why would they do this?
As a proponent of free markets, I was appalled (I know I already said that). By the simple fact they are advertising means they are competing. Can anyone say UPS? FedEx? DHL? The government should not be in competition with the private sector! The government exists to fill the gaps in a free market economy. There are consumer needs in our economy that either cannot be supplied by private companies or we would not private companies to supply (law making, criminal justice, defense, etc). But if there are willing suppliers adequately fulfilling consumer needs, the government should not be involved.
So in the case of express mail, with companies like UPS and FedEx providing these services, the government should get out of the business. Instead we have them competing with these companies! And not only that, we have using taxpayer money to take market share away from them. I won't even go into how more effective and efficient private companies are in meeting consumer needs than the government. The Post Office is subsidized from the General Fund, meaning the loss is pushed off to taxpayers as well. So if the Post Office increases its market share, it costs more to taxpayers, and we lose the tax revenue from these companies' profits. BRILLIANT!
We are left with a army of homogenous-looking letter carriers attempting to squash any competition. A more appropriate advertising tune would be the Imperial March from Star Wars.
# posted by Martin @ 9:05 AM 
