httponlinewsjcomarticleSB10001424127887323838204579002921161

http://online.wsj.com/article/SB10001424127887323838204579002921161305780.html?mod=e2fb

After reviewing the article, please respond to the following questions:

1. In today\'s world with private companies specializing in the delivery of packages (FedEx, UPS, etc.) does the government still need to be involved in the delivery of mail?

2. Does postal service represent a \"productive function\" of government (i.e. a good or service that cannot easily be provided through private markets) or is this an example of government attempting to provide a service that would be better left in the hands of private enterprise?

Solution

1. The privatecompanies are obligated by statute to provide mail services to all Americans, irrespective of where they live and the cost of serving them. Furthermore, it is required to deliver first-class mail at a uniform price throughout the nation. I think Govt. shouldn\'t be involved in delivery of mail.

2. These days electronic communications and other technological advances are making physical mail delivery less relevant. Govt postal service will declining mail volume, bloated operating expenses, a costly and inflexible unionized workforce, and constant congressional meddling. So clearly this an example of government attempting to provide a service that would be better left in the hands of private enterprise