Tuesday, August 11, 2009

Huh?? Did President Obama just invoke the U.S. Postal Service to sell his public health insurance option?

Seriously??? Unfortunately, yes:

As an opponent to the current health care proposals, I ask that President Obama please repeat this statement as often as possible because I really don't think the public is clamoring for yet another federal program "that's always having problems."

Moreover, Ace of Spades notes that President Obama's analogy is flawed since UPS and FedEx are not allowed to compete against U.S.P.S. in the delivery of regular mail under U.S. law:

Um, that's part of the problem.

Even taking his quote for the claim it's meant to stand for: UPS and FedEx would be doing better. The trouble is, they're not permitted, by law, to compete with the Post Office regarding regular (that is, non-overnight) mail.

They are specifically excluded from that market.

They are "doing fine" in the market segment they're permitted to compete in.

However, if the law were changed and they were permitted to compete for regular mail delivery, they might not be "doing fine" in that market if the government competed unfairly in that arena, such as imposing general taxes on everyone to reduce the cost of postage, etc.

The government, on the other hand, continues to exist in this business at all only because the government grants itself a monopoly in the delivery of regular mail.

That's the only reason we still have a Post Office. Government fiat.

What a boneheaded remark. Yes, let's remind everyone of the shocking difference in
experience between the Post Office and FedEx or UPS.

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