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There is a profit to be made in physically moving items and people in dense urban areas, and things like package delivery and train service would exist there through free market forces.
But it just cannot make economic sense to run trains and mail out to East Bumblefuck. Why would you ever invest in the infrastructure?
Which is why you have government subsidies and mandates to require those things. Amtrak has to run more than the Northeast corridor. The USPS has to deliver to more places than downtown NYC.
And that's a good thing, IMO. It is one of the things that the country can do for its citizens. Economically, it of course makes sense to stop subsidizing rural living. We should pretty much all be living in dense cities with just a few people out of them to grow food. And, if we let the free market have its way, that's what would naturally happen.
But not everything has to make $$ sense. There would be something intangible lost if we stopped propping up rural America. So I'm fine with things like the Post Office, etc. to help keep rural America afloat.
Not every single thing has to make sense, you know?
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