Price of A stick of Gum 50 years ago

[Independent Harry]

Anyone remember? Trust me this is a political question. I just can't seem to find it anywhere on the internet.

[The Professor]

price of a postage stamp

4 cents 47 years ago, 44 cents today, 40 cent increase

I = PRT

40 = 4R(47)

40 = 188R

40/188 = R = 21.3%

21% interest is stunning

21% per year for 2 or 3 years is devastating

21% per year for a decade is impossible

21% per year ever year for FORTY full years is govt at work

liberals (like bigears) would turn over every institution in this country to the kind of people who run the dmv

http://www.akdart.com/postrate.html

[Independent Harry]

Did I ask that question?

[bairdi]

Anyone remember? Trust me this is a political question. I just can't seem to find it anywhere on the internet.
It was $.05 for a pack of 5 sticks of gum.

[T-Cat]

price of a postage stamp

4 cents 47 years ago, 44 cents today, 40 cent increase

I = PRT

40 = 4R(47)

40 = 188R

40/188 = R = 21.3%

21% interest is stunning

21% per year for 2 or 3 years is devastating

21% per year for a decade is impossible

21% per year ever year for FORTY full years is govt at work

liberals (like bigears) would turn over every institution in this country to the kind of people who run the dmv

http://www.akdart.com/postrate.htmlYou need to use compound interest when calculating the interest rate.

A = P(1 + r)^n

A = 44 cents
P = 4 cents
n = 47

r = 5.24% annual increase over 47 years.

You are also cherry picking the starting point since you went back 47 years to a point about 6 months before an increase in price from 4 to 5 cents while the current price is shortly after the last increase in price.

Now we can go back to July 24, 1959 which is a little less than a year after the increase to 4 cents. So the price has gone from 4 cents to 44 in 50 years.

n = 50

r = 4.91% annual increase over 50 years.

So we are looking at an annual increase of about 5% since 1959, no where near your figure of 21%.

Now considering yearly inflaton rates have varied between about 2 to 13 percent since then, 5% doesn't sound wildly out of line in terms of overall inflation.

[T-Cat]

Using Figures from the BEA, Inflation has been about 3.65% a year over the last 50 years, less than the post office increases, but not dramatically less.

If you increased the postal rate by 21% a year for 47 years it would go from 4 cents to $311.15, not 44 cents.

[The Professor]

You need to use compound interest when calculating the interest rate.

A = P(1 + r)^n

A = 44 cents
P = 4 cents
n = 47

r = 5.24% annual increase over 47 years.

You are also cherry picking the starting point since you went back 47 years to a point about 6 months before an increase in price from 4 to 5 cents while the current price is shortly after the last increase in price.

Now we can go back to July 24, 1959 which is a little less than a year after the increase to 4 cents. So the price has gone from 4 cents to 44 in 50 years.

n = 50

r = 4.91% annual increase over 50 years.

So we are looking at an annual increase of about 5% since 1959, no where near your figure of 21%.

Now considering yearly inflaton rates have varied between about 2 to 13 percent since then, 5% doesn't sound wildly out of line in terms of overall inflation.

EDIT: n should actually be 49 which would give an r = 5.02%

extremely well done, sir

5% a year for 40 years (compounded) is HORRIBLE

and, at that, the dept is bankrupt

according to the post office itself

http://www.huffingtonpost.com/2009/01/28/post-office-may-cut-weekl_n_161951.html

January 28, 2009

WASHINGTON — Massive deficits could force the post office to cut out one day of mail delivery, the postmaster general told Congress on Wednesday, in asking lawmakers to lift the requirement that the agency deliver mail six days a week. If the change happens, that doesn't necessarily mean an end to Saturday mail delivery. Previous post office studies have looked at the possibility of skipping some other day when mail flow is light, such as Tuesday.

Faced with dwindling mail volume and rising costs, the post office was $2.8 billion in the red last year. "If current trends continue, we could experience a net loss of $6 billion or more this fiscal year," Postmaster General John E. Potter said in testimony for a Senate Homeland Security and Governmental Affairs subcommittee.

Total mail volume was 202 billion items last year, over 9 billion less than the year before, the largest single volume drop in history.

And, despite annual rate increases, Potter said 2009 could be the first year since 1946 that the actual amount of money collected by the post office declines.

"It is possible that the cost of six-day delivery may simply prove to be unaffordable," Potter said. "I reluctantly request that Congress remove the annual appropriation bill rider, first added in 1983, that requires the Postal Service to deliver mail six days each week."

[Dale escondido]

Anyone remember? Trust me this is a political question. I just can't seem to find it anywhere on the internet.

Too me relevancy is whats things cost in relation to what one earns.
Then its easy to see if were gaining or losing.

[T-Cat]

extremely well done, sir

5% a year for 40 years (compounded) is HORRIBLEThat's over 50 years and yes it isn't good but it certainly isn't devastating like your 21% figure. A stamp would cost over 700 times more if that was true. That would be DEVASTATING, LOLOLOL. Now while 5% is certainly above inflation, there are various other services such as healthcare that have been increasing above overall inflation.

and, at that, the dept is bankrupt

according to the post office itself

http://www.huffingtonpost.com/2009/01/28/post-office-may-cut-weekl_n_161951.html

January 28, 2009

WASHINGTON — Massive deficits could force the post office to cut out one day of mail delivery, the postmaster general told Congress on Wednesday, in asking lawmakers to lift the requirement that the agency deliver mail six days a week. If the change happens, that doesn't necessarily mean an end to Saturday mail delivery. Previous post office studies have looked at the possibility of skipping some other day when mail flow is light, such as Tuesday.

Faced with dwindling mail volume and rising costs, the post office was $2.8 billion in the red last year. "If current trends continue, we could experience a net loss of $6 billion or more this fiscal year," Postmaster General John E. Potter said in testimony for a Senate Homeland Security and Governmental Affairs subcommittee.

Total mail volume was 202 billion items last year, over 9 billion less than the year before, the largest single volume drop in history.

And, despite annual rate increases, Potter said 2009 could be the first year since 1946 that the actual amount of money collected by the post office declines.

"It is possible that the cost of six-day delivery may simply prove to be unaffordable," Potter said. "I reluctantly request that Congress remove the annual appropriation bill rider, first added in 1983, that requires the Postal Service to deliver mail six days each week."Well of course the post office loses money on a substantial amount of its deliveries. First Class mail is in decline which is its protected market while it must compete with UPS, FedEx etc. for other parts of the market. With e-mail and other forms of electronic distribution spreading throughout most of the country, the point is coming when providing first class service to anyplace in the country at a fixed price no longer makes a lot of sense.

[Dale escondido]

That's over 50 years and yes it isn't good but it certainly isn't devastating like your 21% figure. A stamp would cost over 700 times more if that was true. That would be DEVASTATING, LOLOLOL. Now while 5% is certainly above inflation, there are various other services such as healthcare that have been increasing above overall inflation.

Well of course the post office loses money on a substantial amount of its deliveries. First Class mail is in decline which is its protected market while it must compete with UPS, FedEx etc. for other parts of the market. With e-mail and other forms of electronic distribution spreading throughout most of the country, the point is coming when providing first class service to anyplace in the country at a fixed price no longer makes a lot of sense.

Post office loses money because the entitlements have over-run them.
Typical government job, give a little and your set for life.

[doctordog]

[QUOTE=Crazy Mike]That's over 50 years and yes it isn't good but it certainly isn't devastating like your 21% figure. A stamp would cost over 700 times more if that was true. That would be DEVASTATING, LOLOLOL. Now while 5% is certainly above inflation, there are various other services such as healthcare that have been increasing above overall inflation.QUOTE]

The technology of a stamp hasn't changed in 50 years, however, healthcare has changed at a rapid pace.

[Bill Cosby]

So when do we find out what this has to do w/ politics....

All this has been kicked around before....

[ROdger Right]

Right meow, the federal reserve should be blown up with all its secerets and all high level working personel should be put to sleep.

The Bankes and corporations have regained their foothold and must be destoryed by any means necessary.