Postal Governors To Small Publishers: Drop Dead

Whenever postage rates go up, people most immediately think of the impact of the new price of a 1st class stamp. Actually, the cost of mailing in many categories increases, such as packages, credit card solicitations, catalogs, and invoices. Newspapers and magazines also have to pay more, and for 215 years, they have paid the same rates regardless of circulation size, frequency, or corporate parent.

Until now, that is.

In March, the U.S. Postal Service (USPS) Board of Governors rejected a recommended Postal Service plan for modest, across-the-board increases for all periodicals. Instead, without Congressional oversight or public imput, it accepted a modified version of a lengthy, complicated plan put forth by Time Warner (the publisher of Time, Sports Illustrated, People, and over 100 other magazines), for smaller increases (under 10%) for the country's largest publishers, while dramatically raising rates (up to 30% or more) for smaller, independent publishers.

From one free-market perspective, it doesn't seem all that unfair. Megapublishers have the economies of scale through their sorting, bundling, and delivery systems to get their stuff to and through the USPS faster, so maybe they should pay less. Except that this flies in the face of the principle of its universal service mandate. Regardless of whether one is mailing a letter across town or across the country, the cost of 1 ounce 1st class delivery is 41 cents. For over 200 years, periodical rates have been equal because Thomas Jefferson, George Washington, et al., wanted to ensure that there would be a wide and open exchange of ideas and opinions. This principle is now at risk of being seriously degraded.

If there were a variety of choices for delivering periodical mail, there would likely be less argument. But, under the law, the USPS is a monopoly. It can have no competition; legally, it owns the mailbox outside your door. So much for free enterprise in the USA. At the same time, it is mandated by Congress to be self-sustaining, and to honor its enormous pension obligations. Hence, the vicious cycle of regular rate increases depressing mail volume, which, in turn, leads to more rate increases.

A broad coalition, including such strange bedfellows as National Review, The Nation, Mother Jones, American Conservative, and many others, has mobilized to fight this.

Congress needs to intervene, if the Board of Governors won't overturn this whole scheme.

Please contact Free Press's Stop Postal Rate Hikes for more information, petitions, etc.
The effect on a small record company and a music magazine publisher by this proposal