Stamps Price Index.

[LargoWinch]

Deflation facts for all to see (again) :rolleyes:

Or perhaps another proof that CPI data from CBs is a load of donkey dung?

...

If the cost of a postage stamp had risen at merely the rate of inflation since 1950 when a stamp cost two cents, today you could send a first-class letter for 30 cents. Instead the cost rose in May to 44 cents from 42 cents.

...

Full Article here.

[D-Mack]

Re: Stamps Price Index.

And as EJ said, I believe, you can have inflation through lower quality.

These higher prices have corresponded with worsening service. The mailman used to deliver twice a day in urban areas, but now Postal Service Chief Executive John Potter says he wants to stop Saturday service to reduce costs. No private business in America could continually raise prices, lose billions of dollars and then hope to win back customers by promising poorer service.

[Starving Steve]

Re: Stamps Price Index.

But I can send e-mail to anyone, anywhere in the world for ZERO cost, except for the monthly computer fees. And I can phone anyone, anywhere on Earth for nearly nothing too. Telephone long-distance calls used to cost $4 or $5 for every three minutes.

New-car costs have also dropped. And maintenance costs for driving, auto-servicing costs, repair costs, and rubbish like that has all but disappeared. Driving now-a-days is a delight, if you can afford the gasoline costs.

So, not everything has gone-up, and plenty of things in the so-called, "good old-days" used to cost a fortune; long-distance calls were just an example.

I remember as a small child in 1953, a pay-toilet used to cost 10c in silver coin. One game on a pin-ball machine used to cost 10c in silver. NOT CHEAP, by any measure.

To-day, where they hammer you are in things that used to be almost free: utility costs, property taxes, water bills, land costs, housing costs, subdivision approval costs, building permits, and things of that nature. So, it's a different world now-a-days, in some ways.

But happily, pay-toilets have disappeared.

[jiimbergin]

Re: Stamps Price Index.

If we all buy lots and lots of Forever Stamps, we wil have no more inflation (at least in first class mail)

jim

[K Carlson]

Re: Stamps Price Index.

Deflation facts for all to see (again) :rolleyes:

Or perhaps another proof that CPI data from CBs is a load of donkey dung?

LargoWinch,

I believe your comment about CPI data is spot-on. Also, higher oil prices hurt the transports more than other industries. Apparently, mail volumes are down about 20%. These three factors may explain most of the difference between the CPI and stamp price increases.

[GRG55]

Re: Stamps Price Index.

And as EJ said, I believe, you can have inflation through lower quality.

I'm sure the BLS has some sort of "substitution/hedonic adjustment" that shows the real price of mailing a letter has seen no inflation, ever...:rolleyes:

[jk]

Re: Stamps Price Index.

the u.s. postal service has to provide for delivery to and from the smallest hamlet, and cannot discrimate by price, i.e. it cannot charge more to customers in those small hamlets. it was established by the 2nd continental congress in 1775 not as a profit making institution but as a means of binding together the country. [benjamin franklin was the first postmaster general.] it would have to be run very differently, and charge very differently for its services if it had to be profitable, and many areas of the country would not have postal service.

[LargoWinch]

Re: Stamps Price Index.

the u.s. postal service has to provide for delivery to and from the smallest hamlet, and cannot discrimate by price, i.e. it cannot charge more to customers in those small hamlets. it was established by the 2nd continental congress in 1775 not as a profit making institution but as a means of binding together the country. [benjamin franklin was the first postmaster general.] it would have to be run very differently, and charge very differently for its services if it had to be profitable, and many areas of the country would not have postal service.

Here is a wild guess: a lot less credit offers by mail puts postal system in deep trouble.

[snakela]

Re: Stamps Price Index.

I was just talking with someone about how forever stamps are probably a better long term investment than the SP500 right now.

I wonder if the market has enough lack of friction to make buying a few thousand of them worth the while.

[jiimbergin]

Re: Stamps Price Index.

I was just talking with someone about how forever stamps are probably a better long term investment than the SP500 right now.

I wonder if the market has enough lack of friction to make buying a few thousand of them worth the while.

I plan to buy a lot (not sure how many that is), but the government can always find some way to change the rules.:rolleyes:

[LargoWinch]

Re: Stamps Price Index.

Actually, a better investment for those living in a city, are Public Transport tokens (if available of course).

Here in Toronto, they have never gone down and are likely to go much higher due to increased energy and union labor costs.

The beauty is that you can buy "rolls" of them for $112.50 for 50 tokens ($2.25 each), which are easy to store and/or sell.

[jk]

Re: Stamps Price Index.

Actually, a better investment for those living in a city, are Public Transport tokens (if available of course).

Here in Toronto, they have never gone down and are likely to go much higher due to increased energy and union labor costs.

The beauty is that you can buy "rolls" of them for $112.50 for 50 tokens ($2.25 each), which are easy to store and/or sell.

i forget when this happened, but i recall nyc raising subway fares and switching to new tokens at the same time. old tokens didn't work. [there was a transition policy, of course, but you get the idea.]

[LargoWinch]

Re: Stamps Price Index.

The same thing occurred here in Toronto


The old token was made of only of Aluminum (not dual alloy as per picture above), and was hence easily reproduced by counterfeiters.


Having said that, the Transit authority gave old token holders several months to exchange the old tokens for new ones.


Now, given the recent change in the "TTC token", this provides me with more comfort which regards to my "tokens" investment i.e. it is unlikely that the TTC will again undertake the same endeavor in the short or mid-term as all the machines need to be upgraded resulting in significant expenses.

Below is a picture of the old uni-metallic token:

[LargoWinch]

Re: Stamps Price Index.

Actually, a better investment for those living in a city, are Public Transport tokens (if available of course).

It feels good to be right: ;)

TTC puts tokens on hold as fare hike looms

Toronto, Nov. 24, 2009
Critics slam 'backward' system of temporary tickets valid until Jan. 31, weeks after fare hike officially takes effect

First, you could buy just 10 tokens. Then, five. As of today, tokens are out of the mix altogether, replaced by temporary tickets.

As the Toronto Transit Commission rolls out its latest way of dealing with token-hoarders - a move the commission's chair acknowledges it should have made a month ago - experts say the consternation caused by a pending fare hike [now official] shows just how dysfunctional and antiquated Toronto's transit system is.

...

Full Article Here.

The above is due to the TTC (Public Transit in Toronto) raising fares 10% for tokens and cash fares and more than 11% on the monthly pass.

All of this in a world of 1.5% nominal wage increases (if you still have a job) and where you can earn an outstanding 1.2% on your money per annum in a high-savings account (0% at major banks).

Now, if only I could do the same with my other investments...

[charliebrown]

Re: Stamps Price Index.

Today most first class mail for out of state is flown in the belly of aircraft. I can mail a letter to my brother in California from Illinois and it will make it there in roughly 30 hours. If I slightly miss the cut-offs, It will take 54. Not bad, so not everything with the post office has detriorated.

It is silly that in-town mail and trans-con mail get charged at the same rate. Takes just as long too. The rise in rates is putting the post office out of business. Who can afford 44 cents a letter? Mail a few letters everyday and your're at $200.00 a year postage. This nearly pays for your DSL line.