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Sun Feb 17, 2013, 01:05 PM

On Jan. 27, 2013, Obama instituted the largest tariff on U.S. small businesses in American history [View all]

Last edited Sun Feb 17, 2013, 03:04 PM - Edit history (4)

On Jan. 27, an agreement by Obama's Postal Regulatory Commission Chairman, Ruth Y. Goldway to have USPS First Class International package service reclassified from a relatively fixed-rate "market dominant product" to a "competitive product" (i.e., comparable to FedEx and UPS prices) raised the price of internationally mailing lightweight packages (1 oz - 4 lb) upwards to between 60%-110% more than previously.

For example, prior to the rate increase, the cost of mailing a 1.25 lb package to the UK was $13.17; now it will be $18.60. Previously, the cost of mailing a 1 oz-2 oz. package to, say, Canada, was $3. The new rates double that to $6.03 - $6.55. A 5 oz. package package, previously $6.95 to ship internationally, will now cost $12.75

Needless to say, any American small business owner who sells products internationally -- be they small electronics dealers, millions of online vendors, or any other small business which wishes to sell its goods internationally: http://www.npr.org/blogs/therecord/2013/01/29/170498909/rising-postal-rates-squeeze-small-record-labels will be devastated by these rate increases as overseas buyers will naturally balk on making purchases made cost prohibitive due to now unaffordable shipment costs. With their international clients disappearing, it's not gratuitous to say that many of these small businesses will simply go extinct.

And clearly, the rate increases instantly makes USPS less, not more, "competitive" with UPS and FedEx than it ever was before, benefiting both private shippers at the expense of small business owners and USPS itself (expect to see USPS selling much less international mail services because of dramatic rise in the cost of its services).

An obvious question arises: what connections do Ruth Goldway, the USPS Board of Governors, Republicans (especially Darrell Issa and Dennis Ross), and both the Obama and previous Bush administrations have with UPS/FedEx and the assorted hedge funds and private equity groups who are waiting to buy up USPS assets for pennies on the dollar when USPS will finally be forced to fully privatize its 200 years accumulation of property, worth countless billions of dollars?

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Reply On Jan. 27, 2013, Obama instituted the largest tariff on U.S. small businesses in American history [View all]
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