Saturday, May 19, 2007

The USPS's crafty trick

That dimwit who "invested" in $8,000 worth of Forever stamps should've read this article from Slate.com first.

The postal rate climbed 2 cents on Monday, about a month after the United States Postal Service introduced its new "forever" stamp..., which lock in the 41-cent rate for eternity. One man in Pennsylvania walked into a post office and made an $8,000 investment on his own. Should we all be stocking up?

Absolutely not. Since 1971, postal rates have increased more slowly than the actual inflation rate, as measured by the U.S. Consumer Price Index. So, despite the numerous rate hikes over the last 36 years, stamps have actually been getting cheaper. The 20-cent stamp from 1981, for instance, would be equivalent to 45 cents in today's dollars -- which makes today's rate 10 percent cheaper than it was 26 years ago. Should this historical pattern hold, you'd be paying more for today's forever stamps than you would for any stamp in the future, no matter how high the rate goes.

1 comment:

Maggie said...

That's some fascinating economics.