The Alaska mail subsidy at work
For years the postal service has been required by law to subsidize parcel post shipments to and from Alaska. As a result, every now and then you see a story like this one:
Couple moving to Minnesota sends all belongings via Postal Service
September 19th, 2006 06:01
Correct me if I’m wrong, but I think the “Alaska Mail Subsidy” deals only with intra-Alaska mail shipments and is/was intended to make the shipping of groceries and other consumer goods to outlying areas more affordable (for consumers). The system is currently under review in Congress. I don’t think there is any other subsidy for mail coming/going to Alaska any more than there is a subsidy for mail going to/from Hawaii or the US territories and possessions.
September 20th, 2006 05:56
You’re right in a way- the “Bypass Mail” deal subsidizes transport of parcel post by air (as well as passenger service) to outlying communities. But that also makes it cheaper to mail out of the state- it costs the same to mail a 70 pound parcel from Prudhoe Bay to New York, say, as it does to mail one from Anchorage to New York. The subsidy is also reflected in the zone structure, since a package mailed from Alaska costs the same as one mailed from Seattle. In effect, the leg from Alaska to Seattle is free. Contrast that with the UPS rate structure, which is very different for Alaska than the lower 48.
I’m not saying there’s anything wrong with subsidizing service to Alaska or Hawaii- I just think that Congress should be honest about it, and pay for it with taxpayer dollars.