The 78 cent opinion: Why stamp prices surge while mail volume plummets
Let that sink in.
That's the current price of a forever stamp in America – yes, the same ones that cost 39 cents in 2006. That's a 100% increase in less than two decades.
In just the last five years, stamp prices have jumped from 55 cents to 66, then 68, then 73, 76, and now 78 cents. That is an 8% per annum inflation rate on stamps since 2020.
The U.S. Postal Service (USPS) is raising prices so often, it's starting to feel like you're trying to ship your letter via Space X to Mars, not to your grandmother in Des Moines.
And still, somehow, they're losing money, the one thing government is great at.
Let's unpack this. According to USPS financial statements, the agency posted a net loss of $6.5 billion in 2023. Yes, billion – with a "B." This comes after price hikes on stamps, shipping and package delivery services.
And the kicker? Mail volume continues to plummet. First-class mail has dropped more than 50% since 2001. It's not hard to see why. When everything from paying bills to saying "Happy Birthday" can be done with the tap of a phone screen, why would anyone fork over nearly a buck to lick a stamp?
Here's the brutal truth: the U.S. Postal Service is a 247-year-old relic, clinging to a 20th-century business model in a 21st-century digital economy. It's like Blockbuster trying to survive in the age of Netflix.
And who pays the price? You do. I do. Every American taxpayer does. And every business owner trying to ship a product or communicate with customers. Have you seen the cost of an overnight UPS or FedEx package as of late?
And it's not just stamps. USPS lost $94 billion between 2007 and 2020. The agency carries more than $188 billion in liabilities and unfunded obligations. Meanwhile, private carriers like FedEx and UPS are thriving, innovating and investing in automation while USPS remains bloated, bureaucratic and bogged down by outdated infrastructure and a labor force that's nearly impossible to reform due to union pressure and congressional meddling.
Some will say, "But, Ted, the Postal Service provides a vital public good. It connects rural America. It delivers medications. It ensures equity."
I don't disagree with the mission. But can we at least agree that any business – public or private – that loses billions of dollars every year and still raises prices for lower service should be held accountable?
Here's where it gets even more ridiculous. While USPS has been hemorrhaging money and shedding mail volume, it's also spending millions on failed pilot programs like banking services, Sunday deliveries that no one asked for, and electric vehicles that sound great in a press release but cost taxpayers far more than the savings they'll ever bring.
The postmaster general has already warned that more price hikes are coming. So maybe it'll be $1 to mail a letter by next year. But I'll ask you again: is your opinion worth 78 cents?
In the age of social media, you can tweet me, post on my LinkedIn page or leave a comment below – instantly, freely and from anywhere. Yet the very government that promised to provide "universal service" at low cost is now charging more for a worse product. And they still expect a round of applause. Recently, it took 10 days for a birthday card to get to my own mother.
This isn't just about stamps. It's about government waste. It's about poor planning. It's about politicians kicking the can down the road for decades, refusing to modernize, streamline or privatize when necessary. And it's about us, the American people, being asked to pay more for less – and being told to be grateful for it.
So, if you feel strongly about what I wrote, I dare you: write me a letter. Stick a stamp on it. Mail it to my office. But before you drop it in the blue box, just ask yourself: Is your opinion worth 78 cents?
Because that's what it costs to be heard in today's America if you want to send your two cents via USPS.
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