The U.S. Postal Service (USPS) is raising the price of first-class stamps in order to help the service recover from losses.
USPS has been losing money since the 2008 economic downturn and it is raising first-class stamp prices in an attempt to counteract these losses. The 3-cent price hike will take first-class stamp prices to 49 cents starting Jan. 26. The service said that this is only a temporary solution and prices will be taken back down to 46 cents two years later.
The move comes as USPS tries to recover from the $5 billion it lost in the last fiscal year. While USPS maintains that the move will be helpful for the service, companies and charities that use stamps for mass mailings are not happy with the move.
“This is a counterproductive decision,” said Mary G. Berner, president of the Association of Magazine Media. “It will drive more customers away from using the Postal Service and will have ripple effects through our economy—hurting consumers, forcing layoffs and impacting businesses.”
The new stamp price is expected to help USPS recoup $2.8 billion over the next two years.
The opinions contained in this column are solely those of the writer.
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