Postal Service Proposes Price Changes

The U.S. Postal Service wants to increase the price of a first-class stamp by 2 cents to 46 cents starting January 2011.

And if you're wondering how the Postal Service will get away with raising prices after conning the American public with its "Forever Stamp" concept, there are plans to come out with new "Forever Stamp" designs that cost more.

From a Postal Service press release:

Faced with plummeting mail volume traced to the recession and increased use of the Internet, the Postal Service is projecting a deficit of nearly $7 billion for the next fiscal year. Despite eliminating 1 million work hours and reducing expenses by more than $1 billion every year since 2001, a budget gap remains.

The proposed price changes, if approved, will raise about $2.3 billion for the first nine months of 2011. Postmaster General John E. Potter said he does not want customers to bear the burden of dramatic price increases. Instead, Potter announced in March that pricing would be one in a series of solutions the Postal Service is pursuing to become financially sound.

"There is no one single solution to the dire financial situation that the Postal Service faces," Potter said. "These proposed rate adjustments are moderate and part of a fair and balanced approach to ensuring mail service for all Americans well into the future."

Other actions outlined in March included changes to delivery frequency, restructuring prepayments of retiree health benefits, creating a more flexible workforce and expanding access to products and services to places more convenient to customers.

Postal Service Proposes Price Changes