07/12/2024
(William Coulman, David Crowther @ Charter-
From Sunday, sending a 1 oz. letter with a first-class stamp will cost an extra nickel, as the United States Postal Service raises the price of a "Forever" stamp to 73 cents, from 68 cents, its second price hike this year. Fees on other products are also jumping, with overall mailing services set to rise ~7.8%, per USPS.
Straddling a line between a standalone business and a public service, the economics of the USPS are deeply intertwined with the federal government's, allowing the entity to rack up losses.
The series of price increases we've witnessed since 2021 — a total of six for “Forever” stamps — is just one part of the agency's broader 10-year plan to revitalize its finances. Introduced in 2021, the plan aims to get the agency to break even by 2030. However, USPS missed its targets for fiscal year 2023, reporting a $7 billion deficit, and it has rarely turned a profit since 2006.
As we graduated from physical mailboxes to overflowing email inboxes, mail volumes, particularly letter volumes, have steadily declined. Squeezed by waning demand and rising costs, the price of letter-sending has far outpaced the broader Consumer Price Index since 1958 — had they tracked inflation, a stamp would cost just 43 cents.
