You are a victim of mis information. Yes the post office has lost personnel correspondence business. But they have more than made up for it in flat rate shipping. The reason they lose money is under the Bush admin. They were forced by legislation tagged on to a completely unrelated bill that they had to provide retirement medical benefits for the next 75 years in 15 years.
This legislation was imposed to break the USPS next we have a big USPS smear for people who do not follow or research legislation to believe. The sad thing is this huge lump some of money is being wasted buy those who passed it.
So If you want your postal carriers to make minum wage and if by free market you mean the buddy system for government contracts go ahead let the current system be back stabbed out of existence.
You can see the lies and mis information they spread in something as trivial as a ecigs. So why would you believe anything from this self serving money consuming laviathio that will stop at nothing to feed its self.
Well, they need to up there prices like any other business. Artificially maintaining low prices for mail and packages to hit the tax payer later kills the foundation for creating competition, progress, and cost efficiency. To put it bluntly, it is cheating and the public suffers. Albeit, not by much but it's a principle.
The notion of a corrupted free market by the buddy system and government contracts isn't an argument against the free market. It's an argument against a corrupted system. subsidizing the whole thing is taking the easy way out. Its better than a Verizon world and worse than the app market. Two examples of markets that are closed and free. One with competition, creativity, and cost efficiency in abundance and the other where you pay 120$ a month for crap, pay for services you don't need, and are promptly informed of what you cannot do.
I don't have a grudge against the post office. If I needed a job I would apply there because it is cheating. If I need a package I'll go with them because it is cheaper. However, that doesn't mean I will justify their way.