What’s good for today could wreak bankruptcy tomorrow for the U.S. Postal Service (USPS), says Republican Newt Gingrich about the plan regarding “Forever Stamps.”

 

U.S. Postmaster General Patrick Donahue wants to go exclusively with forever stamps for all future stamps sales. This would allow consumers to purchase stamps knowing that they can still be used even if the Postal Service hikes the cost of first-class postage in the future. Forever Stamps are popular with most Americans because users don’t have to worry about scrounging up one- and two-cent add-ons after a price hike.

 

Gingrich sees it differently. He argues that the plan “appears on the surface to be a good deal for customers.” But it also is “setting the stage for bankruptcy and a future bailout of the Post Office with taxpayer money.”

 

As the GOP presidential wannabe sees it, switching to Forever Stamps may lead to a short-term infusion of revenue for the USPS, as Americans take advantage and buy extra stamps now before the cost of new stamps goes up with the next rate hike.

 

But the Postal Service is experiencing chronic budget shortfalls, and extra revenue now isn’t going to address the long-term problems facing the agency. The Forever Stamp proposal may even make things worse for the future, if Americans buy fewer stamps down the road because they loaded up on them now.

Noel Brinkerhoff

 

Forever Stamp Folly (by Newt Gingrich, Human Events)

Post Office Marks New First-Class Stamps 'Forever' (by Douglass Daniel, Associated Press)