Please Evaluate....
42. The following appeared in the opinion section of a national newsmagazine.
"To reverse the deterioration of the postal service, the government should raise the price of postage stamps. This solution will no doubt prove effective, since the price increase will generate larger revenues and will also reduce the volume of mail, thereby eliminating the strain on the existing system and contributing to improved morale."
Discuss how well reasoned... etc.
Response:
In this argument, the author concludes that the government should raise the price of postal stamps to reverse the deterioration of postal service. He reasons that the price increase will generate larger revenues and will also reduce the volume of mail. While this argument has some merits, its line of reasoning needs close examination.
Firstly, the author assumes that the price increase will generate larger revenues and reduce mail volume. While this reasoning sounds good in general sense, it does not consider the market conditions that dictate revenues and volumes. For example, if alternate mailing services are available, the customers will move to the other modes of mailing due to price hike. This in-turn leads to decrease in revenues and volumes. However, the author's statement holds good in a monopoly market where government is the only service provider.
Secondly, the author mentions the deterioration of postal services is the cause for his proposal of price increase. He does not evaluate the reasons for deterioration of postal services. The reasons for this deterioration can be many-fold: poor management, competitive forces, market conditions etc.
Thirdly, the author does not mention any other option than price increase of postal stamps for reversing the deterioration of postal service. He fails to provide other potential options such as increasing efficiency, throughput, market share etc. that can reverse the deterioration of postal service.
Finally, the author fails to evaluate the strain on the existing system. Moreover, his assumption that reduction in volume of mail contributes to the improved morale is unwarranted.
In conclusion, the argument is weak. To strengthen the argument for price hike of postal stamps, the author should provide the details of market conditions, reasons for postal service deterioration, competitive forces and other options for improving the postal services.
42. The following appeared in the opinion section of a national newsmagazine.
"To reverse the deterioration of the postal service, the government should raise the price of postage stamps. This solution will no doubt prove effective, since the price increase will generate larger revenues and will also reduce the volume of mail, thereby eliminating the strain on the existing system and contributing to improved morale."
Discuss how well reasoned... etc.
Response:
In this argument, the author concludes that the government should raise the price of postal stamps to reverse the deterioration of postal service. He reasons that the price increase will generate larger revenues and will also reduce the volume of mail. While this argument has some merits, its line of reasoning needs close examination.
Firstly, the author assumes that the price increase will generate larger revenues and reduce mail volume. While this reasoning sounds good in general sense, it does not consider the market conditions that dictate revenues and volumes. For example, if alternate mailing services are available, the customers will move to the other modes of mailing due to price hike. This in-turn leads to decrease in revenues and volumes. However, the author's statement holds good in a monopoly market where government is the only service provider.
Secondly, the author mentions the deterioration of postal services is the cause for his proposal of price increase. He does not evaluate the reasons for deterioration of postal services. The reasons for this deterioration can be many-fold: poor management, competitive forces, market conditions etc.
Thirdly, the author does not mention any other option than price increase of postal stamps for reversing the deterioration of postal service. He fails to provide other potential options such as increasing efficiency, throughput, market share etc. that can reverse the deterioration of postal service.
Finally, the author fails to evaluate the strain on the existing system. Moreover, his assumption that reduction in volume of mail contributes to the improved morale is unwarranted.
In conclusion, the argument is weak. To strengthen the argument for price hike of postal stamps, the author should provide the details of market conditions, reasons for postal service deterioration, competitive forces and other options for improving the postal services.
