The USPS-Fed Ex/UPS analogy makes the argument for one.
In his Sept. 26 Star Tribune commentary, "Profit motive makes the
world go round," William Shugart II had his facts correct (to echo his
critique of President Obama) but his conclusions wrong.
Shugart rejects Obama's claim that the U.S. Postal Service (USPS)
and Fed Ex and UPS shows that the public and the private sectors can
coexist. He points out that the private businesses do well while the
public entity -- USPS -- runs in the red. Proof, he says, that USPS
cannot compete effectively.
That USPS loses money is true -- but not for the reasons Shugart
gives. Fact is, the public service and the private ones serve vastly
different markets, and both are needed for successful commerce (just as
a public health care option would supplement private health insurance
companies). USPS provides Americans with an inexpensive, convenient way
to deliver mail and packages anywhere in the world at low, and
admittedly subsidized, prices.
For 44 cents you can get your letter picked up, delivered probably
in a day or two, and brought directly to the respondent's home or
business. Conversely, the cheapest Fed Ex delivery is $4.57, but most
Fed Ex packages cost between $10 to $15.
Thus each service provides consumers with a choice.
What's more, if Shugart is concerned with profitability, the USPS
offers businesses a highly cost-efficient way to deliver such things as
statements, advertising and commercial correspondence that Fed Ex could
never replace. If Shugart wants the public service to concede to the
private ones and leave the scene, the first complainers would be his
profit-motivated corporations. USPS also picks up a lot of the dirty
jobs Fed Ex and UPS choose not to service -- like junk mail and Rural
Free Delivery (RFD). So Obama is correct: The private and public
services can and do coexist quite comfortably.