Postal rates to rise 3 cents

Does anyone send snail mail anymore?

If you do, you'll have to pay 3 cents more per first class letter if the USPS gets the okay from Congress.


Regulators on Tuesday approved a temporary price hike of 3 cents for a first-class stamp, bringing the charge to 49 cents a letter in an effort to help the Postal Service recover from severe mail decreases brought on after the 2008 economic downturn.

Many consumers won't feel the price increase immediately. Forever stamps, good for first-class postage whatever the rate, can be purchased at the lower price until the new rate is effective Jan. 26.

The higher rate will last no more than two years, allowing the Postal Service to recoup $2.8 billion in losses. By a 2-1 vote, the independent Postal Regulatory Commission rejected a request to make the price hike permanent.

The higher cost "will last just long enough to recover the loss," Commission Chairman Ruth Y. Goldway said.

Bulk mail, periodicals and package service rates rise 6 percent, which is likely to draw significant consternation from the mail industry.

Its groups have opposed any price increase beyond the current 1.7 percent rate of inflation. They say charities using mass mailings and bookstores competing with online retailer Amazon will be among those who suffer. Greeting card companies also have criticized the plans.

The Postal Service is an independent agency that does not depend on tax money for its operations but is subject to congressional control. Under federal law, it can't raise prices more than the rate of inflation without approval from the commission.

The service says it lost $5 billion in the last fiscal year and has been trying to get Congress to pass legislation to help with its financial woes, including an end to Saturday mail delivery and reduced payments on retiree health benefits.

The figures through Sept. 30 were actually an improvement for the agency from a $15.9 billion loss in 2012.
It should be obvious to just about everyone by now that you can't make money delivering mail everywhere to everyone. Some rural routes are going to be profit killers. And the USPS will never be able to compete with far more efficient FedEx and UPS at delivering bulk pacakages.

So what do we do with this dinosaur? Change is going to have to include some kind of privatized service with perhaps the government taking routes and responsibilities that wouldn't be profitable for a private company. There will be a need for a postal service that reaches everyone for the foreseeable future, but it doesn't have to include the failed model being followed by the USPS.

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