Eli5 How does a stamp cover the cost of sending a letter?

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It confuses me on how one stamp can cover the cost of sending something basically anywhere in the states, and international isn’t much more.

Wouldn’t the gas alone cost more?

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Anonymous 0 Comments

>How does a stamp cover the cost of sending a letter?

It doesn’t. The United States Post Office is losing money hand-over-fist. They do okay on most packages, and okay on letters that are sent to somebody who’s in the same city as the sender, but if you mail a letter from like Florida to Alaska, your stamp doesn’t even come close to paying the cost.

Since they’re a government agency, not a corporation, their goal is to provide the service, not to maximize profits. So they accept your letter even though it will lose them money.

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