Sun. Jun 23rd, 2024

Opinion Postal increases are hurting businesses and nonprofits

April 24, 2023

READ FULL ARTICLE AT » The Washington Post

Paul Waldman’s April 19 column, “USPS is raising rates again. It’s still a global bargain,” made sense as far as it went. Postage is not a large burden on most households because most of us do not spend much on it. The U.S. Postal Service can offer postage rates lower than much of the world with economies of scale because it is the world’s largest postal system. Increased volume helps a large network operation with high fixed costs keep average costs down.

As Mr. Waldman noted, users of USPS provide most of the funding. But the lion’s share of USPS revenue comes from businesses and nonprofit organizations. They spend thousands or millions a year on postage. They respond to how much postage goes up and how quickly, not what a stamp costs in other countries.

The amount and speed of postage increases since 2019 are staggering: The price of a stamp has increased 32 percent since 2019. The problem is that many of the businesses and organizations that fund USPS cannot afford these increases and are forced to cut volume.

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