Possible USPS Forever Stamp Price Rollback?

cj,

The comparison of the USPS and Amtrak to natural monopolies is not a point in their favor. Natural monopolies are markets that have high startup costs and low operating costs as natural barriers to entry. What was once a natural monopoly can lose that characteristic through technological change. That happened to telecommunications and now it is happening to written communications (mail). Amtrak is another matter, a pure government subsidy for elites between Washington and the NE. It has nothing good to say for itself as a "natural monopoly." The Interstate Highway system is somewhat of a "natural monopoly" because of arbitrary conditions placed upon it as an aspect of National Defense, and thus brings into consideration aspects of a "public good." Is first class mail a public good? That is probably a better rationalization for it than natural monopoly. It is not technology -- high startup costs and low operating costs -- that keeps others out of first class mail. It may be a monopoly, but there is nothing natural about it. It must justify itself on other grounds.

Even if this does stand, I wonder how much the rate would go down, maybe to 48c but I doubt below that. My understanding is the USPS is entitled to raise rates to match inflation. It would seem they would have been entitled to a 1c increase to 47c back in 2013 when they got the emergency increase to 49c instead. They probably would have been entitled to another 1c increase (to 48c) in 2014, and maybe another penny now in 2015 anyway? In other words, it seems like maybe inflation has pretty much caught up to the 49c rate by now anyway?

Matt

I still doubt that anything will happen

If it does happen it will be 47cents in Aug.The USPS might be forced to by the decision. SD Tom is right that there is probably some kind of reevaluate of what an emergency is.

update: http://www.washingtonpost.com/blogs...rolled-back/

Looks like it's going to happen next April.

price tbd

Won't we all be surprised when the USPS "rolls back" the first class rate to 50 cents.