American Forest & Paper Association Opposes USPS Postal Rate Increase Plan

WASHINGTON – The American Forest & Paper Association (AF&PA) President and CEO Donna Harman today issued the following statement on the United States Postal Service (USPS) Board of Governors’ directive for a proposed 5.9 percent across the board postal rate increase for 2014.

“Today’s announcement of a 5.9 percent postal rate increase is more than troubling. The critical problems of overcapacity and falling demand for mail cannot be solved by raising prices.”

“AF&PA believes the USPS is relying on an outdated and inelastic pricing model to justify this rate increase. Postal rate increases above inflation will drive customers away and further accelerate the decline in mail volume.

“Approximately one-third, or $6 billion of printing and writing paper produced in the U.S. is delivered through the mail system. Today’s decision is not the answer. An exigent rate increase would negatively affect consumers, as well as threaten the future reliance on mail as a competitive option for paper-based communication and commerce.

“AF&PA urges Congress to adopt postal reforms that ensure the fiscal viability of the USPS by reducing operations and labor costs, eliminate unreasonable financial obligations while ensuring that mail is a cost competitive option for business communications. Current law provisions limiting rate increases to inflation are an important component of the law and should be retained.”

Read more: AF&PA Opposes USPS Postal Rate Increase Plan.

  • Surprise!

    When you complain about waste in the lowest cost producer in the industrialized word, and the U.S. Postal Service is the lowest cost producer in the industrialized world, you are not using good business since. At this point you are only talking short term greed that is so intense that you are willing to destroy all long term benefits the Postal Service can offer to keep some sales right now.

    If Congress were to enact laws forcing every citizen to accept and read the junk mail placed in their mail box and if the Postal employees were replaced with free convect labor this group of greedy merchants would still scream for a reduction in postage rates.

    This is why when Adam Smith wrote the Wealth of Nations he made it clear merchants should never be allowed to control government.