Stamps Increase: USPS Seeks To Raise The Price
The USPS is seeking to increase the price of stamps, which will certainly be disapproved of by American citizens. The postal service is planning a 3-cent increase, which would raise the price to 49 cents, in order to mail a letter. The proposal of this rate increase must be approved by the independent Postal Regulatory Commission. If accepted, the increase would take effect on January 26, 2014.
As a part of the request for the rate increase, the cost for each additional ounce of first-class mail would increase from one penny to 21 cents. Additionally, the price of mailing a postcard would rise by a cent, to 34 cents. The cost to mail a letter to an international destination would jump up to $1.15, an increase of 5 cents. The New York Times mentions that according to federal law, the post office is not allowed to raise the price more than the rate of inflation, unless it gets the approval from the commission. The post office is also expecting to lose $6 billion this year and will be forced to look to Congress for assistance.
News story is stamps will increase from 46c to 49c. I better budget in that additional 12c I'll be out next year.
— kacey (@adgirlSC) September 25, 2013
Want a 6.5% return on your money in the next 4 months? Your best bet is … forever postage stamps. http://t.co/F1Z1bRFkpL
— Will Saletan (@saletan) September 25, 2013
An increase in rates could hurt media marketing and businesses that rely on postal services, and would likely lower postal volume and revenues. This is not the first time that they have tried to increase the rates and in fact sought an increase in 2010 unsuccessfully, blaming their results on the recession. It sounds like a dangerous decision again and it is unclear how this will have an effect on businesses. Raising the price on necessary things does not seem good for an economy, and industry groups and unions say raising prices beyond the annual limit could hurt the mailing industry and their businesses, as stated by the Chicago Tribune. The postal service seems to be seeing it as a necessary task in order to get rid of their deficit and balance the budget. Stamped mail, the most profitable business of the agency, accounts for 43 percent of its revenue. Although, these sales continue to drop, while the majority of Americans now use e-mail as a form of communication and are able to pay the majority of their bills online.
CALLER: Better stock up on "Forever" stamps… USPS is ready to increase stamps to $.49. Pensions take $.91 out of each USPS income dollar
— 《 ★ KStar102Talk ★ 》 (@KSTAR102TALK) September 26, 2013
A bipartisan bill in the Senate would end Saturday mail delivery after one year and cease door-to-door delivery for new residential and business addresses. It is said that this would save $2 billion per year and was introduced by Darrell Issa, a republican senator from California.
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