Anonymous asked in Politics & GovernmentPolitics · 1 decade ago

Did Obama make a big mistake comparing Fed-Ex to the US postal service while promoting government involvement?

in health insurance reform?

Yes Fed-Ex & UPS make money and the US Postal service is way over budget.

Fed-Ex & UPS Don't really compete with the US Postal Service.

Just what was he trying to say?


Subvertor: You dont see Fed-Ex charging $0.43 cents to deliver mail at a loss do you? So its NOT the same pull your head out.

19 Answers

  • 1 decade ago
    Best Answer

    No, it was a great analogy. Maybe not for his cause, but it clearly illustrates what happens when the government runs something, and how well it does compared to the private sector.

  • Noah H
    Lv 7
    1 decade ago

    Fed-Ex doesn't deliver first class mail because there's no profit in it. Delivering the mail has always been a losing proposition, yet it's an essential service. Where's the profit in the US Coast Guard? Roads and highways? Police and fire protection? There is none; all are money losers. Private health insurers spend .$43 out of every premium dollar for overhead and profit. Medicare spends $.03 for overhead and zero for profit. Do you like spending $.40 more for the same thing? Here's another fact: The US Postal Service charged $.03 to deliver a letter in they charge .$40 more. To cut even they could charge $.53.....half a buck raise in 200 years. I'd call that a real deal. $.53 to send a letter from Key West Florida to Pt. Barrow Alaska. Fed-Ex couldn't do that for $53.00 Besides, the Postal Service will be closing several hundred facilities now obsolete because of E-mail, so their overhead will be decreasing over the next year. Conclusion: Fed-Ex and the Postal Service perform two separate functions, and a 'public option' HEALTH INSURANCE company would cost less and do more than the current system and nobody would be left out. More upside? The HEALTH CARE industry would expand to deal with all the new insured Americans that could now afford to pay for service rendered. What a concept!


  • Cinner
    Lv 7
    1 decade ago

    Just one of many. I was actually astounded when he said it because I had been using the analogy of UPS, Fed Ex vs. USPS for a while. I thought it was obvious that this showed the inadequacy of federal government in the business world.

    ADD: If UPS and/or Fed Ex EVER start accepting letters at .43 (or the current rate for USPS) the Post Office is done!!!! It is the only business they get a large part of.

  • 1 decade ago

    So why do no Republicans make an attempt to turn off the US Postal Service ?

    Could it be that people can rely on it in a way that they never could for the package companies?

    The Post Office is downsizing to reflect the reduced amount of mail they are carrying, as email replaces written letters and e-bills replace bills.

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  • Robin
    Lv 4
    4 years ago

    I also prefer the Postal Service. Best value.

  • Anonymous
    1 decade ago

    Definately!!! Why is he kicking USPS in the mouth!? USPS is run by the Government! Doesn't that tell you, he doesn't know what's going on in his own camp!! You DON'T run down your own people!!! Same thing with the Healthcare! He doesn't have a clue what's in that Plan! It's going to be like a Bible or the Koran! It can be interpreted anyway a person wants to! Both are MAN written, and there are flaws in both!! He should have taken the next six months to actually read it, and then have each sentence explained to him, in layman's language. And then present it to the PEOPLE to vote on it! But what he was trying to do, was to take away that right from us, and stick it to us!

  • Anonymous
    1 decade ago

    I think it is a fair general comparison.

    So you're recommending the USPS changes first class postage to $1.50 per oz.?

    Or that it should be abolished so that only those who can afford to pay $6.00 per ounce are allowed to mail postage driven on the government owned roads?

    Sounds like fed-ex and ups then could be taxed more for their use of federal roadways and airspace to make up for the usps budget shortages considering also the usps was founded by Franklin and that basically fedex-ups ripped off his idea

    how about a copywright infringement lawsuit of some sort to make up the budget shortfalls?

    Fedex might have to sell one of their sports stadiums that reap advertising budget

    wait, so they make money off of outrageous service fees AND advertising?

    Wow those companies sure are ripoffs

    I'm glad I switched my company shipping solely to usps

  • 1 decade ago

    LOL...I worked for the feds for 10 years, and every year a contract had to be negotiated for overnight delivery servicve. Not once in all of those years did the USPS ever get the contract. Funny how even the govt didnt use its own service and preferred to contract it out to a private company instead

  • Anonymous
    1 decade ago

    I think it is clear that BO is for government control in ALL AREAS!

    I have to admit on one thing though...the post office MIGHT have outlived it's time. We have email and fax etc and the post office is way overpriced compared to FED EX.

    FED EX and UPS do compete. Not head to head...but I know when I have to have something delivered quickly...they have cheaper rates and faster service...and I choose one of them.

    I lost my bank card and compared to 10 days US POSTAL service...It got it in three with UPS. I took the UPS.

    I know they deliver mail...but half of it is junk anymore...and people do a lot of business online and in automatic payments. Nothing wrong with that. It is cheaper and quicker and better and you pay on time that way.

    Even if you order something is usually FED EX or UPS...rarely US Postal.

    so as much as I want to say BO stepped out of line...he is just stating facts but as usual....he should stay out of BUSINESS and take care of OUR country and worry about JOBS that might be lost with his open mouth and supporting things he doesn't have an inside look on.

    Him and Biden have a habit of thinking they should comment on everything and that is government control. He should STAY OUT OF BUSINESS and let businesses take care of themselves. YES EVEN WITH STIMULUS MONEY...stop it.....stop paying and stop opening your mouth.

  • 1 decade ago

    The U.S. Postal Service is a semi-independent federal agency, mandated to be revenue-neutral. That is, it is supposed to break even. It doesn't. It bleeds cash. So you see just how well "semi-independent federal agencies" and real world companies compete.

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