What if the public plan is just like the Post Office?


Obama keeps asking the question, sarcastically as if to make light of Republican arguments, that if the public plan is so bad no one will want it anyway. What if he is right, but doesn’t realize it (or maybe he does), that there could be a real difference in quality of choice and thereby care, much like there is between the Post Office and FedEx, UPS, or other public carriers. I know the devil is in the details, but unless heavily regulated and forcibly enacted most will stay with private versus public.

I keep thinking of the possibilities based on what I call “The Law of Unintended Consequences”, while the government (read Democrats) thinks it’s doing all of these wonderful things, they typically only make things worse for those they are trying to help. Here are several what ifs:

  • Well qualified doctors refuse to be in the Public Plan and only take patients with qualified private plans, thereby giving the best care to those who can afford it.
  • The Public Plan begins to ration care for those on their watch, therefore having businesses offer the ”premium” private plans to attract employees, giving an edge to more profitable, higher paying employers.
  • While one of Obama’s talking points is that there is no profit in the Public Plan therefore it will be cheaper, I can’t imagine if it is run as any other government enterprise that it can do anything cheaper than private industry. I assume the SEIU and other unions will be involved. To date there is not any major industry that has heavy union involvement that is considered financially healthy (auto’s, education, or heavily unionized states such as CA. NY, or IL) by any pure free market standard.

The unintended consequence is that those who are uninsured and those forced into the Public Plan by their employer may now have to pay/receive for lesser, more rationed, care than can receive today.

Offering less and charging more is not a recipe for success. Just as the Post Office is not in the business to make a profit, it is generally not the prefered method for getting mail/packages delivered when any sort of guarantee of delivery is needed. To make things worse it is always in the red because it can’t compete financially.



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20 Comments Leave a comment

obviously you dont ship for a living....

dave_in_atl (Diary) Monday, June 29th at 3:26PM EST (link)

I will say this… If our business had to choose one and only one shipping method for our business it would be USPS.

not because its faster (although I can ship a priority mail package to CA in 2-3 days while its 5 for FedEx)…
not because its cheaper (though it is)…
not because its more reliable… (although USPS rarely looses a package we ship out)

but because its the only carrier where you can ship _anywhere_. FedEx wont ship to parts of Alaska (because its not profitable), while the USPS has to.

When everything is factored in USPS is far superior to FedEx/UPS. The only thing the private shippers have over USPS is package tracking (which USPS is possibly the worst out there)

Dave...why exactly is it not profitable for FedEx to ship to Alaska...

Aaron Gardner (Diary) Monday, June 29th at 3:38PM EST (link)

Because USPS has an unrestricted budget (yes I know that isn’t actually true but it is effectively true) which means they don’t have to worry about profits which allows them to undercut rates by private shipping businesses.

Essentially USPS keeps FedEx and others out of the market by destroying the profit motive.

[full disclosure, I subcontract for the USPS]

conform and celebrate diversity….or else!!!

“We’d be much better off if We The People had desired small government enough to keep it.” acat


possibly...

dave_in_atl (Diary) Monday, June 29th at 3:47PM EST (link)

But I suspect even if USPS didn’t exist FedEx/UPS would not cover some of the more remote regions of the US.

Lets face it.. A town in the middle of nowhere with just a few people (accessible only by plane) is never going to be profitable.

The only way you would ever provide affordable service to such an area is to subsidize it. I know one thing I like the fact I can pay less than a dollar to ship a letter to anywhere in the US. I don’t want to spend 10 times that because the letter is going to a rural or unpopulated area… call me a socialist if you want i guess.

I agree with you

mom2oneson (Diary) Monday, June 29th at 3:56PM EST (link)

the post office has great service, it’s convenient and less expensive. The employees are very nice and they have great upselling skills. I’ve never walked out of their without being asked if I wanted stamps. I have had poor experiences with the UPS stores with rude employees and them not being upfront about additional charges. The post office is way more professional. You are right about tracking, wow why can’t they update their stuff more frequently. It’s so fustrating to tell a customer sorry it’s not showing up yet after they have spent 20 minutes on hold. If they would just update it once in the early afternoon and once at night that would be awesome.

mom2oneson...USPS is not less expensive...

Aaron Gardner (Diary) Monday, June 29th at 4:02PM EST (link)

You just fail to see the expense because you are focusing on the cost at the Post Office rather than the overall cost of funding the USPS and it’s bureaucracy through taxes.

conform and celebrate diversity….or else!!!

“We’d be much better off if We The People had desired small government enough to keep it.” acat


 

Its the worst thing about the USPS

dave_in_atl (Diary) Monday, June 29th at 4:03PM EST (link)

Heck sometimes the package arrives at the destination before they get around to updating the tracking information.

 
 

I don't think we need to subsidize it at all dave...

Aaron Gardner (Diary) Monday, June 29th at 3:59PM EST (link)

How may puddle jumper planes are flying around in Alaska on any given day to those remote locations?

Imagine if we took out the USPS, would people be content to not ba able to correspond with the rest of the world, or would some savvy business type with a pilot’s license decide that it was profitable to become a sub-contractor for FedEx/UPS/DHL, with those larger businesses expanding to Anchorage.

Open the market to competition and you will see people step up to make a buck.

that is how the free market works.

conform and celebrate diversity….or else!!!

“We’d be much better off if We The People had desired small government enough to keep it.” acat


heh...

dave_in_atl (Diary) Monday, June 29th at 4:07PM EST (link)

yep in an effort to make a profit FedEx contracts out those remote regions of Alaska to USPS :)

Ok Dave...been reading too much Orwell I think...;^)...nt

Aaron Gardner (Diary) Monday, June 29th at 4:17PM EST (link)

conform and celebrate diversity….or else!!!

“We’d be much better off if We The People had desired small government enough to keep it.” acat


 
 
 
 

Actually, FedEx does ship to Alaska and has a big operation in ANC.

Achance (Diary) Monday, June 29th at 4:17PM EST (link)

They don’t go out to the rural areas, but not jet carrier does, not even Alaska Airlines. All the big airfreight operations have major centers at Anchorage International, so all of them serve the larger towns here; FedEx even operates turboprops within the State from the ANC hub, saw one come in an hour or so ago when I was down at my boat since my marina is right off the JNU approach.

That said, UPS/FedEx/DHL are all Godawful expensive, even when compared to Alaska Airlines’ Gold Streak service, so most everybody here uses USPS if they can. I could get USPS Priority flat rate boxes to my kid in Afghanistan it a week, sometimes less, for $8.65.

In Vino Veritas

I'm not saying FedEx does not ship to Alaska...

dave_in_atl (Diary) Monday, June 29th at 4:26PM EST (link)

Just that they don’t ship to some very remote regions (like you just said).

Costs to AK, HI, International etc are where USPS rates truly shine though. Its not uncommon for me to see packages that have a $100 difference in postage costs between FedEx and USPS.

As far as Afghanistan though (APO/FPO i assume) I believe, but this has always been a bit confusing to me that USPS treats APO/FPO as basically a domestic package as far as rates are concerned.

I still don't see the cost savings....

Aaron Gardner (Diary) Monday, June 29th at 4:32PM EST (link)

I mean if I am already paying taxes to fund USPS and then have to pay for postage, a P.O. box in my town because there is no local delivery, and other incidentals that USPS charges on various items…where exactly is this huge cost savings?

conform and celebrate diversity….or else!!!

“We’d be much better off if We The People had desired small government enough to keep it.” acat


well...

dave_in_atl (Diary) Monday, June 29th at 4:42PM EST (link)

the USPS is supposed (yea yea i know) to be pretty self sufficient….

In 1995 it actually made $1.8 billion dollars, and at the time there was concern that it was making _to much_ money.

Things have not gone so well lately (2001 was ~3 billion loss), but in theory the USPS can operate with little to no tax dollars.

The only way for USPS to operate sans taxx dollars...

Aaron Gardner (Diary) Monday, June 29th at 4:48PM EST (link)

would be to increase price, stop having the Post Office open on Saturdays, renegotiate it’s contract with the Postal Carriers Union, force retirement and massive layoffs.

Trust me when I say that the bureaucracy behind the USPS is in a class of it’s own.

conform and celebrate diversity….or else!!!

“We’d be much better off if We The People had desired small government enough to keep it.” acat


The point is being missed here....

texas214 (Diary) Monday, June 29th at 5:52PM EST (link)

when I send something that I know needs to be there overnight guaranteed,with the ability to track, I rely on Fed Ex or UPS. When I want something to get there, but have less concern about timing, I will use the USPS.

Just as when I get sick I’d prefer that FedEx or UPS doctor because I want to know I’m getting the best care. An example is that for a common cold the “USPS” doctor is fine, but when I need heart surgery I’m looking for that “UPS/FedEx” doctor.

Dave is right about one thing though and that is, as a country we may have to subsidize certain parts of the country (which we’ve done with electric, phones and roads), however doesn’t mean that you nationalize the entire system.

personaly.

dave_in_atl (Diary) Monday, June 29th at 6:40PM EST (link)

I’ve always felt that probably the optimal (although not necessarily conservative) option for health care has always been public “catastrophic” insurance, with private insurance covering everything else.

Although my theory probably just annoys both conservatives and liberals :)

 
 
 
 
 

you are right about military

mom2oneson (Diary) Monday, June 29th at 4:42PM EST (link)

I’ve sent stuff to relatives in the ME and it’s $$$. APO/FPO is the domestic rate. They do a lot of marketing of those flat rate prioirty boxes for military. The military doesn’t pay postage to send something back to the US though.

 
 
 
 

And one more thing: accountability

JustLeaveMeAlone (Diary) Monday, June 29th at 6:09PM EST (link)

Ever try to get USPS on the phone to deal with an issue?

FedEx, I call my rep, and things happen.

USPS put be through an INCREDIBLY frustrating four hours last week as I had to educate them about their own dang product, Global Express Guaranteed.

I stormed the mail PO in downtown Houston, in person, demanded to speak to supervisors, tried to get to the postmaster (who apparently is constantly out to lunch), and then resorted to doing the same on the “national” line.

The supposed specialist in this product was supposed to call me back (this is after going four levels up the food chain). Do you think that phone call has ever come? Do you believe it ever will?

I got my package back and shipped it FedEx to Australia.

If you are shipping internationally and have any kind of customs problem, including coming into the USA, you can forget ANY help from USPS. With FedEx, they or their customs brokers will handle it for you. Yes, it costs more, but you get what you pay for.

“To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.” Thomas Jefferson

so very true...

dave_in_atl (Diary) Monday, June 29th at 6:31PM EST (link)

USPS can have some of the worst customer service in the industry and by worst I’m not even talking about close. The average employee in their post offices can barely ship an international package, and everything you said about them concerning calls is 100% true. You name it I’ve seen it…

But when USPS is charging ~$50 (basing these numbers on packages we ship out) on average international shipments and FedEx is charging closer to $150 I would expect this to be the case.

 
 
 

USPS Could Never Be AS Bad As Public Option Government Health Care...

rcov092 (Diary) Tuesday, June 30th at 1:02AM EST (link)

the only time the USPS ever kills someone is if a carrier has an automobile accident. Under Obama’s “Effective Treatments” scenario (Code Word for Rationing) the Public Health System Office (of the Division of National Postal Systems and Amtrak Transportation Network Transporting Union Workers Wherever They Do Not Need To GO, headed by 3 independent Czar’s) will kill someone every day in order to “realign” incentives.

“Not One Red Dime for the NRSC or NRCC till they stop trying to elect liberals”