Is Postal Service a private good?

The Postal Service is a public good that cannot be fully replicated by the private sector. If its services can be provided more efficiently, good; if it can turn a profit, great.

What are the possible benefits of the Postal Service being in the private sector?

The USPS also enjoys a range of other benefits: It can borrow up to $15 billion from the U.S. Treasury at low interest rates. It is exempt from state and local sales, income, and property taxes, and from parking tickets, vehicle fees, and other charges.

Is the Postal Service a government agency?

The United States Postal Service (USPS; also known as the Post Office, U.S. Mail, or Postal Service) is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, including its insular areas and associated states.

Is postal delivery a public good?

Most of the goods and services that we consume or make use of in our everyday lives are private goods. For example, the post office can be seen as a public good, since it is used by a large portion of the population and is financed by taxpayers.

Why does government provide some private goods?

The absence of excludability and rivalry introduces market failures that ensure that some goods and services cannot be efficiently provided by markets. These goods are thus unprofitable and inefficient to produce in a private market and must be provided by the government.

Is the US postal service an effective and efficient bureaucracy?

As I said, it is highly efficient — the most efficient system of its kind in the world. For a government agency, it is also remarkably adaptive. It has survived for three centuries because it has been able to re-invent itself.

Is the post office considered a federal building?

The USPS often is mischaracterized as a quasi governmental or private entity. It is neither. The USPS is a government agency that was created by Congress to achieve various public purposes.