4/08/2005

Postal Service Proposes Rate Increase

The U.S. Postal Service is seeking to raise the price of stamps again. A first-class stamp, if approved, would go up to 39 cents. The move would also raise the price of postage for letters and packages 5.4 percent. The price for an overnight Express Mail package would cost $14.39 instead of the present mark of $13.65. Since 2002, the price of stamps has gone up three times. It’s seems like it is starting to take the pattern of gas prices. Maybe it will fluctuate soon as gas does also.

6 comments:

Jones said...

In my opinion, who really cares all that much? 39 cents is not that big of a deal, besides, who really sends letters all that much anyways. Almost all bill paying can be done over the internet. E-mail is gaining popularity over writing letters over traditional mail. The cost of sending packages going up is kind of a bummer though, but still I don't feel it is enough to be significant.

heather said...

I think it is fair. The Postal Service is run on a break-even basis anyway and are funded only by revenues from their products and services. Although funds are available from the government through public funding, the Postal Service has never accepted those funds to use for it's operations. I like the service they provide and the way it is carried out, so to me its no problem if they want to hike the rate by 5%.

Mack said...

The US postal service won't be able to raise the prices on packages very much because they compete with other firms. I think they can set their own prices with letters because they are a monopoly with little or no competition.

ron said...

The US postal service has had net loses for as many years (1.68 billion dollars in 2001). It keeps increasing prices and It keeps losing money. It needs to make major changes or It needs to be privatized. Right now the postal service is a huge waste of taxpayer money

Eric said...

If you ever spend a little time in a foreign country with pore postal service I think you will agree. We live in a great country with a great postal service!!! I don't think that it is a waste of taxpayer’s money in the least! If they need to increase price I say increase away great postal service of ours! I know I will gladly pay the extra 5%.

Dr. Tufte said...

Perhaps postal prices are mirroring the price of gas because it takes a lot of gas to move the mail.

I do know that one factor in this is the money spent on better security measures after the antrax letters of 2001.

Another way of looking at this is that the Postal Service is trying to discourage a business that they really don't want to be in. Their core business these days is bulk and metered mailing. They're required by law to do letters the old-fashioned way, but that doesn't mean they have to encourage it with low prices.