Postal Rates: Where Does The US Stand Vs Other Countries?

I was curious, so I did a quick google search. This is a few years old, but probably still a good representation of where we stand. Please feel free to post anything more current.
http://www.wsj.com/articles/SB10001...081675144936

As much as some of us complain about the USPS, they could be losing even more money than they are based on our apparently cheap rates. Maybe the right to cheap postage is hiding somewhere in one of the amendments to the constitution? Cheap food, cheap gas, and cheap postage? Well, compared to other countries.

I know US rates are restricted by some law or some such, but is it time for us to let USPS charge the same as other comparable countries?

Presumably a balance between higher income from higher prices and loss of revenue as customers choose other providers. In Britain, where Royal Mail prices are relatively high, others have made significant inroads into some parts of its business, especially parcels. Of course, no-one else wants the more difficult locations covered by Royal Mail's universal service obligation.

It is always difficult to figure-out pricing when you are a monopoly. For most public service monopolies, the protocol has been to set rates to cover costs while trying to keep an eye on costs. It works, and it doesn't.

The WSJ presumably computed the "US equivalent" rate by using foreign exchange rates, but these are subject to short- and long-term manipulation & distortion.

The Economist developed (and regularly publishes) their deservedly famous Big Mac Index http://www.economist.com/content/big-mac-index wherein the local price of a near-universally-identical product is used to compute "true" foreign exchange rates.

Of course, no price comparison can stand alone when the product/service actually varies quite a bit from country-to-country. The Japan street-name-and-number problem is easily googled. Less well-known is that, in 1945, sans motor transport (or, if they had it, the fuel for motor transport) the Deutsche Post was backpacking the mail across the Alps in & out of Austria.

Countering those examples are the countries where postal service is, shall we say, less dedicated.

Cheers,

/s/ ikeyPikey

I failed to mention that I started this thread after reading other threads here about Australia and Canada having quite large rate increases. The US is limited to a few cents each rate hike. Are we due for a much larger bump if the USPS would be allowed to do so?

In Britian, there have been substantial rises in recent years. A standard first class letter is now 63p, equivalent to $1 US, whereas that table shows 72c. It's now a third as much again.

I've always thought the postal service was the best bargain on the planet. 49 cents is cheaper than driving just a few miles, and one can send letters all the way from Maine to Samoa for that. Package rates are generally a bargain vs. UPS/FedEx as well.

I'd imagine there are several reasons for the relative bargain of US rates. There has to be some advantage in economies of scale, fuel costs tend to be much lower here, labor costs are probably lower here vs. Europe, etc.

I know it is the government regulations that is keeping the rates low or you would see an increase to help offset the use of online bill paying. I need to keep in mind that the younger generation doesn't use stamps anymore and it is the older generation that has no computer and refuses to learn how to use them that pays by check and mails it in. I realize there are exceptions but for the most part this is true. They send cards too. As they die there will be less demand for postage and I can see no coins (what can you buy for a penny, nickel, or dime). Many of these elderly people don't know what a debit card is. They'll stand at the counter of the thrift store where I work and count out $1.68 in change to pay for their purchase. My daughter who is 31 has never written a check and probably has no stamps in her possession.