MCViewPoint

Opinion from a Libertarian ViewPoint

Why the Post Office Gives Amazon Special Delivery

Posted by Martin C. Fox on July 14, 2017

https://www.wsj.com/articles/why-the-post-office-gives-amazon-special-delivery-1499987531

But when a mail truck pulls up filled to the top with Amazon boxes for my neighbors and me, I do feel some guilt. Like many close observers of the shipping business, I know a secret about the federal government’s relationship with Amazon: The U.S. Postal Service delivers the company’s boxes well below its own costs. Like an accelerant added to a fire, this subsidy is speeding up the collapse of traditional retailers in the U.S. and providing an unfair advantage for Amazon.

Amazon is big enough to take full advantage of “postal injection,” and that has tipped the scales in the internet giant’s favor. Select high-volume shippers are able to drop off presorted packages at the local Postal Service depot for “last mile” delivery at cut-rate prices. With high volumes and warehouses near the local depots, Amazon enjoys low rates unavailable to its competitors. 

This is called crony capitalism. Just like the the various subsidies given electric and hybrid car producers, like Elon Musk and Tesla.

All these breaks are provided via your wallet.

Be seeing you

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