Anes Weblog  -

The Postal Service ( USPS )

08 01 06 16 25

-------- And their rate hike...

I am not happy about the rate hike that just went into effect (US Postal Service). It will cost me two more cents to ship a one ounce letter to anywhere in the US and its territories. It has bounced up to an impressive 39 cents!

Then again, I wonder what else in life costs 39 cents these days. Isn't it impressive that for 39 cents, less than half a US dollar, someone is willing to take one ounce of paperwork and deliver it anywhere you want (within the US) in around three days? This is one of the greatest bargains in the whole world!!

Still not happy?

• A car trip of 10 miles costs around $4.80 in fuel and car maintenance (according to IRS mileage reimbursement rules).
• A 10 minute trip costs $0.88 cents assuming you only earn minimum wage of $5.25.
• Neither DHL, UPS, nor FedEx will bother with your one ounce of paper for less than $6.00 -- if you are lucky.
• Since the Postal Service passes by every home and business every day (save Sunday and Postal Holidays), the impact to the environment for transporting your one ounce of paperwork is negligible.

Sure, I am unhappy that I will have to buy 2 cent stamps to be able to use the few stamps I still have. I am unhappy that my postage costs have increased around 5% more this year.

But considering the last increase was on June 2002, we can count that 5% increase as a 1.4% yearly increase, well below inflation. The first postal rates where 5 cents in 1845 for half an ounce for less than 300 miles. 160 years later, the rate has increased to 39 (for a full ounce, anywhere in the USA). Sounds like a big increase, but in reality it was the equivalent of increasing 1.3% per year. I just wish inflation had been so low.

Postal inflation has been kept low thanks to technology implementations, alternate ways of sending a letter or package (competition), and a mandate from the government to the United States Postal Service to be self sufficient. I just wish other government agencies had the same situations.

We should be proud of the United States Postal Service. Not only it is efficient, but self sufficient -- something not every postal service in every country can say.

Special thanks for the Blueprint for Financial Prosperity for reminding me about this event. And some other praises I have given to the postal services of the world.