Saturday, August 8, 2009

Can The U.S. Be More Scandinavian In Postal Service

Matt Yglesias wonders how to fix the USPS. Privatization or public private partnership? This question should definitely be explored?
I agree with Yglesias that we need to question the subsidy given to rural residents at the expense of metropolitan dwellers. I would be interested to know the cost basis of mail service for metropolitan versus rural regions.

Yglesias writes:
"Of course part of the story with the USPS is that it’s a way of having the majority of Americans who live in metropolitan area subsidize the rural minority. I assume this same issue exists in Sweden and Norway which contain US-esque large sparsely populated hinterlands and I don’t know how they handle it. Providing subsidies for rural living doesn’t strike me as a particularly worthwhile policy objective, but given the strongly pro-rural bias of our political institutions it doesn’t seem avoidable either."
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