The United States Postal Service (USPS) is set to implement another postage stamp price hike, marking the second increase in 2024 alone.
Starting Sunday, the cost of a first-class mail Forever Stamp will jump to 73 cents, a 5-cent increase from its current price of 68 cents.
This 7% hike matches the largest single increase in USPS history, echoing the January 2019 jump from 50 to 55 cents.
The frequency of these price hikes is alarming.
Just last year, stamp prices rose from 63 cents in January to 66 cents in July, followed by another increase to 68 cents in January 2024. It’s like trying to patch a sinking ship with increasingly expensive band-aids.
The USPS claims these price adjustments are “needed” for its financial health.
But let’s look at the numbers: despite implementing its “Delivering for America” 10-year restructuring plan in 2021, the agency reported a staggering $6.5 billion net loss for fiscal year 2023.
This plan, aimed at eliminating $160 billion in predicted losses, seems to be failing spectacularly.
What’s going on with the Postal Service?! USPS…we need to talk about it because it’s getting ridiculous.
— Brandon Claybon (@BrandonClaybon) July 11, 2024
“As changes in the mailing and shipping marketplace continue, these price adjustments are needed to achieve the financial stability sought by the organization’s Delivering for America 10-year plan,” the USPS stated in April. But how many more price hikes can consumers endure before they abandon traditional mail services altogether?
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The agency blames inflation and decreased mail volume for its losses.
First-class mail has plummeted to its lowest volume since 1968. It’s a clear sign that the USPS’s business model is outdated and unsustainable in the digital age.
While the USPS raises prices, its service quality remains questionable.
Beth Dozier, a spokesperson for the nonprofit watchdog Keep US Posted, voiced concerns to Axios, stating that USPS will continue to “hike postage rates twice each year at percentages far above inflation, delay mail, and slip further into financial ruin.”
This cycle of price increases and service declines is untenable.
It’s time to seriously consider privatizing or completely overhauling the USPS.
Taxpayers shouldn’t be burdened with sustaining an inefficient, loss-making entity that continually demands more from its customers while delivering less.
The USPS’s financial woes extend beyond stamp prices.
Other service fees are also increasing, with metered 1-ounce letters going up to 69 cents and international postcards and 1-ounce letters jumping to $1.65.
These hikes affect businesses and individuals alike, potentially stifling communication and commerce.
It’s worth noting that the USPS plans to reduce postal insurance costs by 10% when mailing an item.
However, this small concession does little to offset the overall trend of rising prices and declining service.
The USPS’s struggles are a glaring reminder of the inefficiency of the federal government. While mail services remain essential, the current model is clearly broken.
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It’s time for Congress to take action, either by drastically reforming the USPS or exploring privatization options that could inject much-needed efficiency and innovation into our postal system.
