Postal Service: an American deal

0 Comments | Oakland Tribune, Apr 15, 2005

EVERY few years the U.S. Postal Service informs Congress that the agency will need to increase postal rates. Some years its due to budget shortfalls, while this year the Postal Service says it needs to raise rates to comply with a law that requires it to place $3.1 billion in an escrow account.

At the same time the usual public response is laced with dismay. But in reality, even at 39 cents a stamp, which what is being proposed, the U.S. Postal Service provides one heck of a deal.

For less than 40 cents you can mail a letter from California to Maine knowing it will be hand-delivered on the other end in a timely fashion. Compare the cost and reliability of service to other parts of the world and you will appreciate the deal we receive.

Nobody likes to pay more for anything, and when it comes to the mail everyone seems to have an opinion on why rates should stay the same, or for that matter be cheaper.

But the fact is, when compared around the world, postal rates in America are some of the lowest. But few of us can appreciate that.

And even with those who are unhappy with the postal-rate increase, one comment we heard was why dont they just raise it to 40 cents. The round figure would eliminate the need for the one-cent and three-cent stamps that are the change you receive when buying stamps from a machine. But for businesses that spend millions of dollars on postage, a one-cent increase starts to add up.