Tuesday, July 06, 2010

Proposed Postage Stamp Increase

The U.S. Postal Service proposed today a stamp increase of 2 cents that would begin Jan. 2. That would increase the rate of a stamp from 44 cents to 46 cents. In addition, a whole slew of other rate increases are included in the proposal. The Postal Service cites "ever-declining mail volume as people and businesses shift to the Internet and the declining economy reduces advertising mail," as the principle reasons for the proposed increase.

Even though the Postal Service doesn't receive any tax income, it is still a federal agency and, boy, does it show. When a business is losing revenue, you don't increase the price of your product in order to increase that revenue. Instead, a business lowers the price of the product and then when things have started to pick-up you gradually increase the price. That's just a basic principle of business and economics. But, as many of us know, the federal government doesn't follow basic business and economic principles.

I like the Post Office. I'm one of a few who actually enjoy going to the Post Office and getting stamps for letters and sending out packages. I've collected stamps since I was about 8. I still write hand-written letters and I try to support my local Post Office as much as I can (Post Offices in small towns are part of the town's livelihood). Yet, it really irritates me when the people at the Post Office propose such bone-headed decisions. Come on people, get with the program.

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