The cost of a stamp will jump 6 percent
The cost to mail a first-class letter will be 49 cents beginning Jan. 26. Here's why.
This post comes from Karen Datko at partner site Money Talks News.
The sweet thing about Forever stamps is that you can buy them now at the lower rate and they'll be good for mailing a letter whenever you get around to using them, no matter how much a new stamp costs then.
The price of a stamp was due to increase 1 cent next year because of inflation, says The Washington Post. At the request of the U.S. Postal Service, the Postal Regulatory Commission on Tuesday approved the extra 2 cents to allow the struggling Postal Service to recover $2.8 billion in losses attributed to the Great Recession.
The 2-cent increase is supposed to be in effect for no more than two years, unless inflation allows it to stay.
By law, the price of a stamp can't grow faster than inflation, unless the commission says otherwise.
Overall, that's a 6 percent increase, the biggest in 11 years, the Post says.
The Postal Regulatory Commission also approved a 6 percent rate hike for bulk mail, periodicals and package service, says The Associated Press. A postcard will increase by a cent, to 34 cents.
People are bound to complain; businesses that depend on mass mailing have already done so. But I pity the poor post office. It seems that mail is a basic service that government should provide. Yet Congress years ago made the post office a self-supporting entity that's still subject to congressional control. It's supposed to operate like a business without the freedom to do so.
That's further complicated by the fact that people don't use mail like they used to. Why would we when we have email and online bill pay? AP says:
The post office has struggled for years with declining mail volume as a result of growing Internet use and a 2006 congressional requirement that it make annual $5.6 billion payments to cover expected health care costs for future retirees. It has defaulted on three of those payments.
The post office would like to eliminate Saturday mail delivery to cut costs, but Congress won't go along.
What do you think of the rate increase?
More on Money Talks News:
The cost of mailing a letter through the post office is CHEAP, even at $.49......hell, even at a dollar. Try mailing a letter through UPS or FedEx and see what it costs.
Saturday delivery and rural post office locations are not the source of USPS budget shortfalls. Congress requiring the USPS to fully fund their pension fund several decades in advance is the reason for their current money troubles. Imagine if your company had to fully fund the pension of a 30 year old employee.....today, for their retirement.
The USPS does not rely on tax dollars to operate. The money one pays at their local office is the revenue they depend upon for operations. That and junk mail, of course.
Every time the stamp rate increases or somebody has to wait in a line for more than 30 seconds, many people spew a frenzy of crap trying to convince us all that the USPS is worthless, greedy, and incompetent. What a bunch of crap. If y'all get your way, we'll be paying five bucks to send a Christmas card to granny and thirty bucks for a priority package through a private carrier. Long live the USPS!
FedEX wanted $49 to overnight some papers, I took it 3 blocks to USPS and they sent if for $14.
Will never walk in to a Fedex again for the rest of my life if I can avoid it, and I have no idea why anybody ever would.
(Been boycotting Memorex for 30 years now bcs of bad cassette tapes, so I'm really not kidding.)
and no, I don't know anyone or have family that works for them.
49 cents is lower than they should have gone.
Guess whose packages arrived on time for Christmas? Oh, did I mention they came USPS.
Have a nice day.
Has the same buying power as:
Not a bad deal! Back in 1988 a first class stamp was $0.25 and a gallon of Gasoline was $0.95.
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