Stamps going up AGAIN!!!! Whats the point at this stage of the game!!!!

Discussion in 'Economics' started by S2007S, Jul 6, 2010.

  1. S2007S

    S2007S

    I guess the USPS doesn't get it, do they think that one day people are just going to wake up and start mailing letters and bills like they used to 20 years ago, I don't even remember the last time I bought stamps. They actually believe raising the prices of stamps will help them out of the billions in losses they have racked up over the last few years, over $7 BILLION DOLLARS!!!! They can keep raising stamps all they want because no matter what each year that goes by mail volumes continue to drop as losses continue to mount higher and higher. There is absolutely no reason to send mail anymore. Over the next 10-20 years, maybe even sooner, I think mail will be obsolete.



    Stamp prices going up again -- 46-cent rate asked
    46 cents to mail a letter; post office asking 2-cent rate increase to fight financial crisis
    ap


    Randolph E. Schmid, Associated Press Writer, On Tuesday July 6, 2010, 5:51 pm EDT

    WASHINGTON (AP) -- Buy those Forever stamps now. The cost of mailing a letter is going up again.

    Fighting to survive a deepening financial crisis, the Postal Service said Tuesday it wants to increase the price of first-class stamps by 2 cents -- to 46 cents -- starting in January. Other postage costs would rise as well.

    The agency's persisting problem: ever-declining mail volume as people and businesses shift to the Internet and the declining economy reduces advertising mail.

    "The Postal Service faces a serious risk of financial insolvency," postal vice president Stephen M. Kearney said, an indication that without significant changes a time could come when the agency would be unable to pay its bills.

    The post office lost $3.8 billion last year, despite cutting 40,000 full-time positions and making other reductions, and Kearney said it is facing a $7 billion loss for this year and the same for fiscal 2011, which begins in October. The rate increase would bring in $2.5 billion, meaning there still would be a large loss for next year.

    The post office, though part of the government, does not receive a tax subsidy for its operations.

    While the cost of a first-class stamp would go up, people who bought Forever stamps at the current 44 cents or at lower prices would still be able to use them without paying the difference.

    Officials also said they plan a new design for Forever stamps, which currently have am image of the Liberty Bell. New Forever stamps will have images of evergreen trees. All Forever stamps would remain valid.

    Under the proposed increases, in addition to the 46-cent rate for the first ounce, the cost for each additional ounce would go up a penny to 18 cents. The cost to mail a postcard would go up 2 cents to 30 cents.

    The price to send periodicals would go up about 8 percent, and other rates for advertising mail, parcels and services would rise by varying amounts.

    The current 44-cent first-class rate took effect May 11, 2009.

    The rate increases proposed Tuesday now go to the independent Postal Regulatory Commission, which has 90 days to respond. If approved the new prices would take effect Jan. 2, Kearney said. Besides the first-class increase, postage costs would rise an average of 5 percent.

    After going more than three years without an increase, the post office has raised stamp prices annually since 2006.

    The latest increase is part of a series of deficit-fighting plans, announced in March, that include reducing mail deliveries to five days a week, closing offices and making other cuts in expenses. Congress would have to agree to eliminating deliveries on Saturdays.

    The weak economy has sharply reduced mail volume as companies cut their advertising. At the same time there has been a significant drop in lucrative first-class mail, with more and more people turning to the Internet to communicate with each other as well as to receive and pay bills.

    The proposal drew a quick complaint from the mailing industry.

    "This proposed rate increase amounts to another tax imposed on Americans at a time when the economy can least afford it," said Tony Conway, executive director of the Alliance of Nonprofit Mailers, a group representing charities and other organizations.

    "Consumers everywhere will pay more for the letters and packages they need to send; businesses -- large and small -- will suffer, and even more jobs will be lost," complained Conway, who was designated spokesman for the Affordable Mail Alliance, a coalition of businesses, charities and other mailers formed to oppose the increase.

    Post office finances are complicated by a requirement that the agency make annual payments of more than $5 billion to fund future health benefits for retirees, something not required of other government agencies. The post office avoided financial disaster last year only after Congress allowed it to delay $4 billion of that payment.

    The postal inspector general also contends that the Postal Service has been overcharged billions of dollars for retirement benefits for employees who worked for the old Post Office Department before it was converted to the Postal Service in 1970.
     
  2. Forever stamp..
    Safest investment in the world.

    No risk
    Backed by US Govt.
    Liquid cash market
    No taxes on profit ( probably )
    No competition (Monopoly)
    Value way under true cost ( I see .75c breakeven)
    Lost cost investment
     
  3. The problem with legacy costs....the financial burden of funding current and future retirees continues while the business itself is collapsing. Really, how many stamps does anybody use at this point. I doubt I even use a handful in a year...

    Of course, they've jacked the costs of certified mailing and express mail.
     
  4. What? You dont send Christmas cards or birthday cards to your family?

    Miserable bastard. :mad:
     
  5. MattF

    MattF

    ecards :D
     
  6. I worked for the PO for a little while (great job, btw, I only wanted part time but hey, "I'm good" and they loved me, they kept scheduling me 6 days a week, pfftttt not my idea of part time).

    Anyways, guys told me a story about a carrier who used to keep a thermometer in his delivery vehicle and every day would tell the postmaster something like " You know, it's against the law to keep a dog in a vehicle when it's this hot". We only had a fan and he wanted a/c.

    Those trucks were alumnium and mini solar oven.

    I think the squeeky wheel got the boot.
     
  7. Pekelo

    Pekelo

    1. Everything is going up, why would stamps be different?

    2. PO is a service for society, it doesn't need to be profitable. (although doesn't hurt)
     
  8. I have no issue at all with paying .46 to send a letter from NY to CA.

    Fucking cheapskates....:D
     
  9. Bob111

    Bob111


    those two quotes above kinda didn't match..FRE FNM also use to be safest and backed..tell this to their bond holders
     
  10. zdreg

    zdreg

    liquid cash market?
    buy a few thousand. see how long it takes to unload them at a profit..
     
    #10     Jul 8, 2010