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Postage Increase But Don’t Buy Forever Stamp

Filed under: Economics — Tags: , , — Paddy Wallbouncer @ 2:43 pm 2008 February 12

Good Idea. Just before the stamp price was going up last year, the post office offered stamps priced at the current rate, but usable for first class postage forever. That is, forever or until the government postal system crumbles -unlikely to happen in the near future but possible Of course if you believe the post office is on its last legs, you likely support Ron Paul for President.

Here’s how to buy the forever stamps: They’re not an investment. There might be some numismatic or philatelic value to the stamps themselves, but as a way to cut costs it is a loser. Buy them as a convenience. They’re something that you can get and not have to worry about buying upgrade stamps. But don’t buy into the idea that if you buy a lot of them you will be saving money over the next price increase.

Marketing stamps as a way to save money makes perfect sense from the post offices perspective. You give them money now, but won’t use the service until sometime in the future. It’s almost like a free loan, as if the American public isn’t loaning the post office enough money.

Here’s how it works: Instead of buying say, a roll of 100 at the current rate of 41 cents, ($41.00) and use them up in a year, you buy three years of the forever stamps ($123.00)

Next year the post office has another once cent increase. From 41 cents that is an increase of only 1/41 or about 2.4%. As long as just about anything short of deflation is a part of the American consumer landscape. Don’t stock up.

Numismatic? From French nuismatique latin numisma or nomisma, of or relating to coins and currency. Philatelic From greek philo exsemption of payment latin a, tax or charge. The collection of postage stamps or post related materials. We’ll keep you informed of this and other entertaining news.

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1 Comment

  • I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Mike Harmon

    Comment by Mike Harmon — 2008 February 12 @ 2:51 pm

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