Hold on to your stamps, folks! The U.S. Postal Service is planning to hike the price of a first-class stamp from 63 cents to a whopping 66 cents. And if you’re lucky enough to send mail of other various sorts, like periodicals and advertising mailers, you’re in for a treat come July 9! That is, unless the postal regulator decides to save the day and overrule the increase. In which case, you get to keep your three extra pennies.
The man behind this thrilling postal action is none other than Postmaster General Louis DeJoy, who’s taken it upon himself to fix the mail agency’s ever-growing list of unpayable liabilities. You see, when DeJoy assumed his role in June 2020, the agency was up to its ears in hundreds of billions of dollars in debt. And now, thanks to his valiant efforts, first-class mail costs have soared by 32% since 2019, when we were living the dream with a 50-cent stamp.
Not to worry, though, because sending mail in the United States is still cheaper than in almost any other developed country. Plus, DeJoy’s master plan includes increasing rates twice a year. Why? Because, as the Postal Service explained, “these price adjustments are needed to provide the Postal Service with much needed revenue to achieve the financial stability.” And who said nostalgia was dead?!
Here’s the kicker: Higher rates risk driving away the paper mail business, which rakes in around $41 billion for the agency’s 2022 revenue, compared to a mere $31.3 billion from packages. But hey, at least the Postal Service has friends in high places, like Amazon, its biggest customer! (Fun fact: Amazon founder Jeff Bezos owns The Washington Post.)
Sadly, despite DeJoy’s many efforts, the Postal Service reported a $1.03 billion loss in the final quarter of 2022. But fear not! Congress has swooped in like a superhero and wiped $107 billion in past-due and future liabilities off the agency’s balance sheet. They even granted the Postal Service $3 billion to electrify its fleet of delivery trucks. Kudos, Congress!
However, not everyone is amused by DeJoy’s antics. Kevin Yoder, executive director of Keep Us Posted, a mailer industry, and consumer advocacy group, believes that “DeJoy’s rate strategy is shortsighted and needs to be rejected by the Postal Regulatory Commission in the name of protecting this critical public service.”
But until then, buckle up and get ready for the rollercoaster ride that is the U.S. Postal Service’s stamp pricing. Who knows what thrilling heights we’ll reach next?
