Postage stamps to cost 10 percent more, due to lower-value dollar

The dollar-price for a first-class postage stamp will rise 10 percent next year! That means the dollar will be worth 10 percent less than in stamps. If the dollar is worth 10 percent less, will thou get a 10 percent salary increase? Thy employer is paying out dollars that will be worth 10 percent less, at least in stamps.

Of course if thou uses something other than dollars as a store of value, then the dollar-price may not be important.

A headline from AL.com, says, “Stamps set for largest-ever price increase in January 2019”. It may be the largest increase in cents, but is it the largest percentage increase? No. Later, the journalist reveals that the 1991 increase was 16 percent.

As the dollar continues to be debased/diluted, the net increases will be larger, but the percentages may not. As this continues, at some point, the price of the stamp will rise from $1.00 to $1.10, a whopping eight cent increase, but really just an eight percent rise.

Similar journalistic shenanigans occurs with stock market rises and falls. A 300 point increase or decrease sounds like a lot until the article reveals it is a one percent change.

One must quickly acclimate to the new larger numbers tossed around or focus on percentage changes.

Still, the postage stamp price is going up 10 percent. That is quite a jump. The rampant increase in dollars during the past five to 10 years is finally hitting us, hard.

What’s the solution, store thy wealth in non-dollar assets. Before a purchase, convert into dollars.



Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload the CAPTCHA.