US Stamps: Is US Stamps Price Equal To Value? (Updated in 2024)
By Baily Smith
Published on 2022-09-11
Introduction
Is the price of US stamps equal to their value? This question has been asked many times, and people continue to seek answers. There are numerous posts on the internet that teach you how to shop smart, and you’ve likely read at least one of them. Most of these questions are about specific products or paid courses. Today, however, I want to discuss the value and price of US stamps.
What Determines the Price of US Stamps?
You might wonder: Who sets the price of US stamps? The price is determined by the distance and weight of the shipment, and we cannot choose the price ourselves. Let’s explore the price fluctuations of US stamps to see if they make sense.
Current Cost of US Stamps
As of now, the cost of First-Class stamps in the US is as follows:
- Letter Stamps: Standard size rectangular envelopes start at $0.60
- Postcard Stamps: Standard size rectangular postcards start at $0.44
- Global Forever Stamps: Rectangular standard size envelopes start at $1.40
Historical Cost of US Stamps
Do you know how much a U.S. postage stamp cost 159 years ago? According to the USPS’s “Rates for Domestic Letters Since 1863,” on July 1, 1863, it was $0.03 per ½ ounce, or $0.06 per ounce. The price has increased from $0.06 to $0.60, which is a significant difference.
Causes of Price Fluctuations in US Stamps
You might be curious about what causes such large fluctuations in the price of US stamps and what the future holds. Let’s explore the reasons behind these changes.
Impact of War on US Stamp Prices
Looking back at the late 19th century in the United States, one keyword stands out: freedom. The American Civil War, which lasted from 1861 to 1865, was a pivotal event. It was fought between the North and the South over the issue of slavery.
At the end of the war, slavery was abolished, and four million enslaved blacks were freed. This had a direct impact on the use and price of stamps. During the war, people relied on sending letters to communicate, as there were no cell phones or computers.
Wages and Stamp Prices
Let’s examine the relationship between US stamps and wages to understand the purchasing power of a US stamp.
In 1860, the average annual earnings were $297. Calculating the stamp price as a percentage of annual wages yields a value of about 0.02% ($0.06/$297).
In 2019, the median annual wage was $34,248.45. The U.S. postage rate was $0.55, which is approximately 0.0016% of the median wage.
When adjusted for inflation, $0.06 in 1863 corresponds to about $1.41 today, which is $0.81 higher than the current price of US stamps. This indicates that today’s prices are lower in real terms compared to 1863.
Future Price Trends of US Stamps
The trend suggests that prices will change with inflation. However, the purchase value of US stamps will remain relatively stable.
Despite the nominal increase in the cost of a first-class stamp, the adjusted cost has remained stable over time.
Conclusion
The relationship between the price and value of US stamps reflects the history of the nation. Historically, they are equivalent. So, what is your opinion?
References
- Wikipedia – History of United States postage rates
- Wikipedia – American Civil War
- USPS – Rates for Domestic Letters Since 1863
- CPI Inflation Calculator
- Cost of First-Class Stamps
- Wages and Earnings in the United States, 1860-1890
- What is the Average American Income in 2022
