Price Gouging By the Postal Monopoly

Andrew S.Fischer reports:

On May 14th the U.S. Postal Service instituted its latest batch of rate hikes. As everyone knows, the P.O. has never exactly been a profitable endeavor, although in fiscal year 2006 it managed to eke out a 1.2% gross profit. After an adjustment for retirement costs, however, the gain becomes a loss of 2.8%. Its balance sheet is pathetic, with a "current ratio" of negative 5.6 (current assets $2.0 billion; current liabilities $11.6 billion). This would indicate a company with dreadfully serious problems in meeting its short-term obligations. The stock of such a company on the NYSE would probably be good for use as wallpaper, or as a component in the making of a papier-mâché bust of Ben Bernanke.

It makes one wonder why the government continues to keep this deficient monopoly going. Perhaps the reason is that it gainfully employs 696,000 voters, all of whom are beholden to the government for their incomes. The average starting pay for Post Office jobs is currently being advertised as $20.00/hour. "Postal Jobs Offer Full Federal Benefits, Paid Training, Vacations. No Experience Necessary!" Not bad, eh?

Uncle Sam the monopoly man.