Ha ha, both of you are wrong, or both of you are right. The USPS is a semi-government agency, with attributes of a government agency and a business, at the same time. See the link below:
ganshm
http://usgovinfo.about.com/blpostalservice.htm
About the U.S. Postal Service
USPS - a very "business-like" semi-governmental agency
Look, it's an agency!
The USPS is created as a government agency under Title 39, Section 101.1 of the United States Code which states, in part:
(a) The United States Postal Service shall be operated as a basic and fundamental service provided to the people by the Government of the United States, authorized by the Constitution, created by Act of Congress, and supported by the people. The Postal Service shall have as its basic function the obligation to provide postal services to bind the Nation together through the personal, educational, literary, and business correspondence of the people. It shall provide prompt, reliable, and efficient services to patrons in all areas and shall render postal services to all communities. The costs of establishing and maintaining the Postal Service shall not be apportioned to impair the overall value of such service to the people.
Under paragraph (d) of Title 39, Section 101.1, "Postal rates shall be established to apportion the costs of all postal operations to all users of the mail on a fair and equitable basis."
No, it's a business!
the Postal Service takes on some several very non-governmental attributes via the powers granted to it under Title 39, Section 401, which include:
power to sue (and be sued) under its own name
power to adopt, amend and repeal its own regulations
power to "enter into and perform contracts, execute instruments, and determine the character of, and necessity for, its expenditures"
power to buy, sell and lease private property
power to build, operate, lease and maintain buildings and facilities
All of which are typical functions and powers of a private business. However, unlike other private businesses, the Postal Service is exempt from paying federal taxes. USPS can borrow money at discounted rates, and can condemn and acquire private property under governmental rights of eminent domain.
The USPS does get some taxpayer support. Around $96 million is budgeted annually by Congress for the "Postal Service Fund." These funds are used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas. A portion of the funds also pays USPS for providing address information to state and local child support enforcement agencies, and for keeping some rural posts offices in operation.
Under federal law, only the Postal Service can handle or charge postage for handling letters. Despite this virtual monopoly worth some $45 billion a year, the law does not require that the Postal Service make a profit -- only break even. Still, the US Postal Service has averaged a profit of over $1 billion per year in each of the last five years. Yet, Postal Service officials argue that they must continue to raise postage at regular intervals in order make up for the increased use of email. [See: Postal Service Says It Needs Even More]
In it's private business persona, the Postal Service ventures into E-commerce with "USPS eBillPay," a popular online bill paying service and "Postmark America," an online store for postal oriented gifts, clothing and collectibles.
For email senders, USPS offers an email certification system which enables customers to create and send messages via the Internet through a secured postal account. Customers don’t need an Internet service provider to send electronic messages.
Lol This was a much needed bit of humor, just got done reading about the case put forth by Kashmir about Aram Arumugam and that really got me down. But the idea that people believe that USPS is NOT a govt controlled agency was funny.