First off, why do you think 99% are screwed? do you think the small percent rise in stamps is that onerous?
I admit, the 99% number was made up. It's actually "only" 79.219% being screwed. They're being screwed because the government mandates that they subsidize mail delivery costs for the other 21%. 79% of the population is paying more money on behalf of the other 21%. How can are they not being screwed?
and it's not just small towns, it's also distances. How much does it cost to fed-ex a letter ? I just checked, and to gt a letter send from Oregon to New York via fed-ex is over 16 dollars and it will be there in 5 days. Slower and many times more expensive.
I don't believe you. According to the FedEx website it's only $10.22 to ship a 5 pound package from Seattle to New York in 5 days. It's also a guaranteed 5 day delivery time, which the post office isn't going to give you for a regular letter. For reference, the USPS offers 7-day delivery of a 5 pound package for $4.90, calculated here. It's cheaper, but it's being subsidized by the millions of people who have to pay too much for postage.
Besides that, you're not really getting the point. If Fedex doesn't charge noticeably more than the USPS the government would say they were competing with the PS and impose a huge fine against them. The only exception is for "extremely urgent" packages, which is why FedEx's longest standard delivery time is 5 only days, and why they're so popular for shipping things on a tight schedule.
The post office is far more efficient then pretty much every private corporation.
Then it's fucking asinine that we waste money enforcing their monopoly, because they'd just beat out their competitors anyway, right?