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Should I Invest in "Forever" Stamps? Absolutely not.



 
 
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  #1  
Old June 17th 07, 09:48 PM posted to misc.consumers.frugal-living
Ablang[_2_]
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Default Should I Invest in "Forever" Stamps? Absolutely not.

Should I Invest in "Forever" Stamps?Absolutely not.
By Nathaniel Rich
Posted Thursday, May 17, 2007, at 4:10 PM ET

Illustration by Robert Neubecker. Click image to expand.The postal
rate climbed 2 cents on Monday, about a month after the United States
Postal Service introduced its new "forever" stamp. As of last week,
the USPS had sold more than $82 million worth of the forever stamps,
which lock in the 41-cent rate for eternity. One man in Pennsylvania
walked into a post office and made an $8,000 investment on his own.
Should we all be stocking up?

Absolutely not. Since 1971, postal rates have increased more slowly
than the actual inflation rate, as measured by the U.S. Consumer Price
Index. So, despite the numerous rate hikes over the last 36 years,
stamps have actually been getting cheaper. The 20-cent stamp from
1981, for instance, would be equivalent to 45 cents in today's dollars-
which makes today's rate 10 percent cheaper than it was 26 years ago.
Should this historical pattern hold, you'd be paying more for today's
forever stamps than you would for any stamp in the future, no matter
how high the rate goes.

In fact, this pattern must hold-as a matter of law. In December,
President Bush signed the Postal Accountability and Enhancement Act,
which ensures that future price increases will be kept below an
inflation-based ceiling. In other words, postage hikes will never
surpass inflation-and the forever stamp will never become a good
investment. Incidentally, the USPS announced the introduction of the
forever stamp less than two months after Bush signed the act into law.

The USPS is not the first postal agency to catch on to the benefits of
a forever stamp, which in philatelic circles is known by a less sexy
moniker, "non-value indicator." Canada introduced them last November,
joining Finland, Israel, the United Kingdom, Belgium, France, Norway,
Monaco, and Sweden, among others.

American forever stamps would have been a good investment if they'd
been introduced much earlier. The 2-cent stamp from 1919 would have
been a real bargain, at a cost of 24 cents in today's dollars; so
would 1952's 3-cent stamp (23 cents today). A forever stamp would have
been attractive to the consumer as late as 1971-the year the USPS was
formed-when first-class postage was just 6 cents, equal to 31 cents
today. The biggest rip-off in the modern era? The 13-cent stamp from
1975-which would be 50 cents today.

Got a question about today's news? Ask the Explainer.

http://www.slate.com/id/2166475?nav=tap3

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  #2  
Old June 17th 07, 10:25 PM posted to misc.consumers.frugal-living
Al Bundy[_1_]
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Posts: 892
Default Should I Invest in "Forever" Stamps? Absolutely not.


Ablang wrote:
Should I Invest in "Forever" Stamps?Absolutely not.
By Nathaniel Rich
Posted Thursday, May 17, 2007, at 4:10 PM ET

You continue to waste our time pasting long stories that are readily
available, I suppose because you have no original thoughts.

  #3  
Old June 20th 07, 02:12 AM posted to misc.consumers.frugal-living
timeOday
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Posts: 265
Default Should I Invest in "Forever" Stamps? Absolutely not.

Al Bundy wrote:
Ablang wrote:
Should I Invest in "Forever" Stamps?Absolutely not.
By Nathaniel Rich
Posted Thursday, May 17, 2007, at 4:10 PM ET

You continue to waste our time pasting long stories that are readily
available, I suppose because you have no original thoughts.


I think it's handy to have frugal-related news collected in the frugal
newsgroup.
  #4  
Old June 20th 07, 02:18 AM posted to misc.consumers.frugal-living
Seerialmom
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Posts: 832
Default Should I Invest in "Forever" Stamps? Absolutely not.

On Jun 19, 5:12 pm, timeOday wrote:
Al Bundy wrote:
Ablang wrote:
Should I Invest in "Forever" Stamps?Absolutely not.
By Nathaniel Rich
Posted Thursday, May 17, 2007, at 4:10 PM ET


You continue to waste our time pasting long stories that are readily
available, I suppose because you have no original thoughts.


I think it's handy to have frugal-related news collected in the frugal
newsgroup.


I prefer a brief synopsis with perhaps a link to the original article;
that way I can choose to follow it or not?
But I am considering buying "some" forever stamps; I just ran out of
my "makeup" stamps but don't use stamps all that often.

  #5  
Old June 20th 07, 09:29 PM posted to misc.consumers.frugal-living
[email protected]
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Posts: 58
Default Should I Invest in "Forever" Stamps? Absolutely not.

On Jun 19, 5:18 pm, Seerialmom wrote:
On Jun 19, 5:12 pm, timeOday wrote:

Al Bundy wrote:
Ablang wrote:
Should I Invest in "Forever" Stamps?Absolutely not.
By Nathaniel Rich
Posted Thursday, May 17, 2007, at 4:10 PM ET


You continue to waste our time pasting long stories that are readily
available, I suppose because you have no original thoughts.


I think it's handy to have frugal-related news collected in the frugal
newsgroup.


I prefer a brief synopsis with perhaps a link to the original article;
that way I can choose to follow it or not?
But I am considering buying "some" forever stamps; I just ran out of
my "makeup" stamps but don't use stamps all that often.


I liked the article

 




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