Another Hedge Against Gas Prices… Postage?
May 3rd, 2006 by Grant in: Economics
The United States Postal Service is talking about another hike in stamp prices, effective in 2007.
They attribute the increase to a surge in gas prices, salaries and equipment. Unlike other companies, the USPS can not add a fuel surcharge to postage every time the price at the pump increases.
HOWEVER! For those who like to gamble, you may be able to hedge your postage costs against the increase in postage rates with a “Forever Stamp.” You could buy the Forever Stamp at the current rates and use it forever, regardless of what the current postage rate.
It’s an interesting idea, but wouldn’t you, as a consumer expect the price of postage to increase over time? Equipment won’t be any cheaper next year, and USPS will keep giving raises to employees (figure 4% per year to match inflation), so why not go buy a lifetime of stamps to hedge the increase in costs?
Leave comments
Subscribe to Comments
Loading ...
