🚀 go-pugleaf

In article <1992Aug11.173544.21794@mksol.dseg.ti.com> mccall@mksol.dseg.ti.com (fred j mccall 575-3539) writes:
>In <21309@rpp386.lonestar.org> jfh@rpp386.lonestar.org (John F. Haugh II) writes:
>Consider the volume of mail moved and the subsidization of other
>classes of mail by the cost of a first class stamp.

Oh.  I guess they didn't teach you about "Economies of Scale" when you
were getting that degree in economics.

This is how it works.

I spend $1B on sorting equipment which is utilized at a 50% rate because
there is low mail volume.  When the utilization rate climbs to 60%, the
FIXED COST (You do remember those fixed costs, right?) amortized out per
piece of mail DECLINE.

The problem with the USPS has NOTHING to do with volume or subsidization.
It has to do with the letter carriers union which refuses to give up jobs
as automation attempts to replace people with machines.  The socialists
will argue that this is evil - replacing people with machines is just
absolutely HORRIBLE - but the Japanese have been doing it for decades
and right now they are eating our lunch.  It also has to do with being a
governmental agency.  No business could ever maintain that rate of cost
growth without being a protected monopoly.
-- 
John F. Haugh II                   | Life's Little Instruction Book:
Ma Bell: (512) 251-2151            | "#138.  Learn Spanish.  In a few years,
UUCP: ...!cs.utexas.edu!rpp386!jfh |  more than 35% of all Americans will speak
Domain: jfh@rpp386.cactus.org      |  it as their first language."