It confuses me on how one stamp can cover the cost of sending something basically anywhere in the states, and international isn’t much more.
Wouldn’t the gas alone cost more?
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The USPS doesn’t make a “profit,” like a typical corporation. It strives to price things so that it basically breaks even–enough to pay salaries, pay for buildings, pay for gas, etc. The USPS makes money in a lot of different ways. Some are basic stamps on letters. Some is packages and bulk mailings (like those flyers from your local stores). Some is special services like overnight mail, certified mail, and registered mail. It even makes money selling greeting cards and packaging supplies in post offices. The USPS then estimates how much money will be spent, how much needs to be made, and prices things accordingly. So, it may technically “lose” some money, sending a letter across the country, but the USPS makes it up in other ways. This is not unlike a typical business that makes more money on some products and less on other products. For example, Ford sold millions of Ford Escorts but made no real profit on them. Ford made its profit on bigger, gas-guzzling vehicles, but it had to sell enough fuel-efficient cars to meet certain federal standards.
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