The Forever Stamp Announced (Along with US Rate Rise)

by Jordan Yerman | February 26, 2007 at 09:57 am

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UPDATE: It's official, the US Postal Service has announced a "Forever Stamp" that can be used against future rate hikes.

The USPS has approved a rate hike from
$.39 to $.41 cents for a first class letter. They've also approved the
"Forever Stamp" a stamp that does not lose its value is the postage
rate changes.

PREVIOUSLY...

I seem to remember the UK's stamps not having a monetary value on their face. Just the Queen's face (Not Helen Mirren, though). Stamps that still get a letter sent once rates have risen would be a stellar idea, since more stamps would be purchased per fiscal year than sent, at least in theory.

Also, it is my understanding the the Post Office's charter includes a clause that it must not seek a profit.

A postal regulatory commission recommended a 2-cent increase in the cost of mailing a letter Monday and urged the Post Office to introduce a "forever" stamp valid for first-class postage even when rates rise.

The recommendation to increase postage to 41 cents was a penny less than the postal service had requested.

The commission recommended a 26-cent rate for post cards, also a penny less than the Post Office had sought.

The first ounce of a first-class mail would rise to 41 cents, but each additional ounce would cost 17 cents under the proposal. Currently, each additional ounce of first-class mail costs 24 cents.

The matter now goes back to the Board of Governors of the Postal Service for a decision on whether to accept the recommendation or ask the commission to reconsider. If the governors accept the recommendations the new rates could be implemented in 60 days.

A key part of the plan is the so-called forever stamp, which would allow consumers to hedge against future rate increases.

The stamp, which would not show a denomination, would sell for the first-class rate at the time of purchase and would remain valid for mailing permanently, even if rates increase.

You beat me to it, I was just going to highlight this one.

"Modern sorters can process more than 30,000 pieces of mail per hour,
which theoretically should make it cheaper to send a letter.

A 2004 study by leading experts of the Postal Rate Commission came
to that conclusion: "The doubling of overall volume coupled with scale
economies should have resulted in the average price of the stamp
dropping in real terms."

Yet prices mysteriously continue to rise." [source: Yahoo News]

That's the part that scares me. This is basic econimic fundamentals we are talking about, yet the USPS seems to be increasing prices, with a plan to have annual increases starting in 2009. There is something seriously wrong with this picture and the USPS charter.

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