Thursday, January 16, 2014

Why a stamp costs so much

You probably already know that postage goes up on January 26. That 46¢ stamp on January 26 will cost you 49¢ on January 27.

Why does it cost so much to send a letter?

I was thinking about that this morning and harkening back to the days of my youth in University City, Mo. and the first time I must have hoofed it down to the corner to mail a letter.

From 1919 (No! I wasn't around then) until July 1, 1928 (I wasn't around then, either), it cost 2¢ to mail a letter. Imagine that. Two pennies!

From 1928 to August 1, 1958, it was 3¢. Wish I had saved a few of those stamps.

From 1958 to to January 7, 1963, it was 4¢.

From 1963 to January 7, 1968, it was 5¢. Just a nickel to mail a letter. As an insurance salesman, I could afford to send you a letter first, to let you know I was going to call and pester you to buy a policy.

From 1968 to May 16, 1971, it was 6¢. That's 40+ years ago. A bunch of readers here weren't even born yet and, by then, I was already living in Denver.

From 1971 to March 2, 1974, it was 8¢.

Let's skip ahead a few years ...

On February 17, 1985, a first-class stamp cost 22¢.

On January 1, 1995, the same stamp cost you 32¢.

May 14, 2007, 41¢.

January 27, 2014, 49¢.

Now why has postage gone up?

Remember when you could walk down to the corner and drop a letter in the mailbox? Today you can hardly find a corner mailbox. USPS savings!

Mail delivered to your door? Newer homes have cluster mailboxes. Live in a townhouse or apartment? You have to hoof a block or move to your mailbox! USPS savings!

Mail carriers used to walk their routes. Now they have USPS vehicles. More savings?

Automation should result in savings (and lower prices). Nope, higher prices to customers (and high wages to union workers). When you mail a birthday card in Woodstock to your neighbor in Woodstock, it has to go to Arlington Heights and come back. USPS savings?

I remember a day in Santa Fe, New Mexico, in 1991 when I was trying to buy 10 postal cards. The postal clerk was stoned! He fanned out the cards and was having trouble counting to 10. I complained to the Postmaster, and she told me he was "being careful" because he had just finished paying back a $600 shortage from his cash drawer. I said, "Oh, you mean he stole $600 and got caught, and you couldn't fire him because the union is too strong."

That guy was earning $31,000/year! USPS could have hired a clerk from 7-11 for less than $5.00/hour to do a better job. I think John Q. Public has no idea how high wages in the USPS are. That's why rates are out of sight. Oh, and the stupid government requirement that their pension be advance funded.

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