[ibsulon]

The problem is that bulk mail subsidizes the rest of the system. Now, you might say, then the system is flawed and perhaps a private solution would be better!

The problem is that the post office exists mostly because most rural mail costs more to deliver than the price. It is in the government's interest to make sure that it can send and receive mail to and from all pieces of the country (for taxes, the census, and for general commerce for rural areas. )

As such, bulk mail is a subsidy.