Special treatment from federal, state and local governments has given the U.S. Postal Service an unfair advantage over private-sector competitors such as the United Parcel Service and FedEx, according to an economic analysis released this week.
Robert Shapiro, a former top official at the Commerce Department and principal economic adviser to Bill Clinton’s first presidential campaign, said in a report on Wednesday that USPS benefits from about $2 billion per year in tax exemptions, a monopoly on mail delivery and unique access to federal financing.
“In consideration of the current postal framework, USPS’s monopoly rights and associated subsidies may well impair healthy competition in this large and growing market,” the analysis concluded.