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Why Can't You Start Your Own Post Office?

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As more and more Americans embrace email and other communication technologies, the U.S. Postal Service has absorbed the hit. The agency lost an estimated $10 billion in 2011 and expects to top that this year, leaving many analysts to wonder how long it can hold on. So, what’s keeping you from starting a competing service?

Well, the law.

Back in 1792, Congress passed a series of reforms known as the Private Express Statutes, which make it difficult for Mom and Pop to start their own Pony Express. The restrictions used fines to discourage anyone from privately carrying letters for compensation.

How do those rascals at FedEx get away with it? There are a few loopholes. Congress allows letters that are “extremely urgent” to be transported privately. That’s how carriers like DHL get to run their businesses. Additionally, the USPS is perfectly happy to let private carriers transport letters, as long as the packages bear official postage that’s been properly canceled. (In other words, you can deliver the mail in place of the Postal Service as long as the USPS gets the money for the stamps.)

Has Anybody Tried?

They sure have. Political radical and reformer Lysander Spooner did just that in 1844 by opening the American Letter Mail Company. Spooner felt that the postal monopoly was unconstitutional since the Constitution only gave Congress “the power to establish post offices and post roads” without mentioning any sort of exclusivity. Furthermore, Spooner was pretty sure he could beat the USPS on price; he aimed to cut the price of a stamp from 12 cents to a nickel.

Spooner was primarily interesting in making a political point about the government’s anticompetitive behavior, but the American Letter Mail Company had quite a bit of early success. Spooner opened offices in major East Coast cities and used both ships and railroads to deliver letters in a timely, inexpensive fashion. Customers obviously loved the cut-rate prices and faster delivery times, and Spooner quickly became a worthy rival for the USPS.

Of course, the government didn’t make things easier for him. It tried to punish railroad owners who transported Spooner’s messengers, and Spooner even received threats of jail time for circumventing the government’s monopoly. He kept delivering mail, though, and eventually the USPS had to slash its own prices to keep up. The price of a stamp dropped all the way down to a nickel.

Spooner wasn’t finished, though. He lowered his rates again and kept mailing letters. By 1851 Congress finally had to intervene with new laws to protect the postal monopoly and another rate cut, this one down to three cents per stamp. The new measures finally put Spooner out of business, but his upstart postal service had helped reduce the price of stamps by 75 percent. In the meantime, other private carriers had been able to quietly pull in big profits of their own while Spooner had diverted the government’s attention.

This article originally appeared in 2010.

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Big Questions
What Is the Difference Between Generic and Name Brand Ibuprofen?
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What is the difference between generic ibuprofen vs. name brands?

Yali Friedman:

I just published a paper that answers this question: Are Generic Drugs Less Safe than their Branded Equivalents?

Here’s the tl;dr version:

Generic drugs are versions of drugs made by companies other than the company which originally developed the drug.

To gain FDA approval, a generic drug must:

  • Contain the same active ingredients as the innovator drug (inactive ingredients may vary)
  • Be identical in strength, dosage form, and route of administration
  • Have the same use indications
  • Be bioequivalent
  • Meet the same batch requirements for identity, strength, purity, and quality
  • Be manufactured under the same strict standards of FDA's good manufacturing practice regulations required for innovator products

I hope you found this answer useful. Feel free to reach out at www.thinkbiotech.com. For more on generic drugs, you can see our resources and whitepapers at Pharmaceutical strategic guidance and whitepapers

This post originally appeared on Quora. Click here to view.

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Big Questions
Do Cats Fart?
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Certain philosophical questions can invade even the most disciplined of minds. Do aliens exist? Can a soul ever be measured? Do cats fart?

While the latter may not have weighed heavily on some of history’s great brains, it’s certainly no less deserving of an answer. And in contrast to existential queries, there’s a pretty definitive response: Yes, they do. We just don’t really hear it.

According to veterinarians who have realized their job sometimes involves answering inane questions about animals passing gas, cats have all the biological hardware necessary for a fart: a gastrointestinal system and an anus. When excess air builds up as a result of gulping breaths or gut bacteria, a pungent cloud will be released from their rear ends. Smell a kitten’s butt sometime and you’ll walk away convinced that cats fart.

The discretion, or lack of audible farts, is probably due to the fact that cats don’t gulp their food like dogs do, leading to less air accumulating in their digestive tract.

So, yes, cats do fart. But they do it with the same grace and stealth they use to approach everything else. Think about that the next time you blame the dog.

Have you got a Big Question you'd like us to answer? If so, let us know by emailing us at bigquestions@mentalfloss.com.

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