I haven't posted anything here in a little while because I've been preoccupied with the Occupy Wall Street protest. Personally, I think it's high time Americans stood up and said, "We've had enough!" and I think it's great that the movement has gone global. Thomas Jefferson said, "I hold it that a little rebellion now and then is a good thing, and as necessary in the political world as storms in the physical.", and, "The spirit of resistance to government is so valuable on certain occasions, that I wish it to be always kept alive. It will often be exercised when wrong, but better so than not to be exercised at all. I like a little rebellion now and then. It is like a storm in the Atmosphere." What's happening now is a good thing.
I wanted to take some time today to offer some ideas on why this rebellion has risen up. I am in no way a spokesperson for any Occupy event/movement, so don't misunderstand, these are just the thoughts of one citizen.
I believe far too many Americans believe that we have a capitalist economy. Far too many Americans believe we have a democracy. Both of these are false and I believe that the misperceptions of these two things have helped politicians to polarize party lines.
The U.S. government was not founded as a democracy. The founding fathers did not trust the average citizen to not be taken in by a silver-tongued devil. Looking at the country and it's media today it could be argued that the founding fathers were ahead of their time. Democracies had been shown to be too chaotic to be sustainable so they set up a republic wherein we the people get to elect representatives to make decisions and run the country on our behalf. What that means for the average citizen is, if you are not satisfied with the way your representatives in government are running things, you need to communicate that to them and if they don't listen you need to elect someone who will. I know this is more work than most Americans want to do, but if you let the government run itself it will act in it's own best interest (as it has).
(The good news is that this is much easier to do today than it has been in the past! I would recommend going to Congress.org and signing up for updates on what your representatives are voting for and against. While you're at it look up some activist sites that concern themselves with things you care about and sign up with them. Many send out petitions and letters on key issues that you can sign and follow. Get your representatives' email addresses and phone numbers and contact them directly. Tell them what you want and ask for explanations if they don't do it. Keep them accountable!)
Capitalism. Look around. This is not what Adam Smith had in mind. Before anyone starts quoting The Wealth of Nations out of context let me just remind everyone that Smith first wrote The Theory of Moral Sentiments -- his own personally favored work -- and The Wealth of Nations was intended to be considered as the next chapter to The Theory of Moral Sentiment, not as a stand-alone piece.
That said, do we really have a capitalist system where one person can build a business and thrive? In some cases, yes. In most cases, though, no and the odds are looking more and more like those on a lottery ticket. Assuming that one does have the resources and talent to build a business and make it successful, navigating through government regulations and personal and business litigation, that business will likely have to compete with one or more huge corporations that are likely deemed "too big to fail" by their board members in Washington D.C. The deck has been stacked and the game is not the same as it was in the late 1700's.
I recently read an argument that if you took someone from the "rich 1%" and took away everything, they would not complain that they couldn't find a job, they would make their own job and create more jobs in the process. I feel this is oversimplified and that if you put this imaginary person into similar circumstances as the average American (i.e. school loans, children, hospital bills, auto repairs, etc.) the story might vary. But let's assume it's absolutely true. Why should we be content with a system that rewards a single talent on the backs of those with other talents? I know some people who are very good at business. I know more people who have had businesses that either failed or never fully supported them. Most of the people I know are very good at things other than owning and operating a business. Why don't we reward the people who teach the next generation or farmers who create our food supply in the same way we reward someone who can find loopholes in the tax code, has a talent for stock speculation, or is willing to neglect their health and family for the almighty dollar? Isn't the person who drives a truck or the person who builds and maintains the road an important part of the distribution system on which many businesses are built?
The fact that our transportation and energy systems have not really changed all that much in the past one hundred years is an indicator of how we have all become complacent. The system is antiquated and it's high time for an update. Our country needs a reboot. Two hundred and some years ago when the U.S. was being established there were those who believed we should be a simple, agrarian society and not be too involved in the world's affairs. Others wanted something that looked more like England's empire. When decisions were made, guess who came to the table?
It's time for us all to show up to the table and make our voices heard.
Showing posts with label Adam Smith. Show all posts
Showing posts with label Adam Smith. Show all posts
Thursday, October 20, 2011
Sunday, April 17, 2011
I Hate Credit Cards: Part III
The other day I received a statement in the mail from the second-to-the-last credit card to have been paid off. Despite the card having been paid off, the statement showed the current balance as $11.32.
WTF!?!? Okay, okay, after my last experience with this I pretty much knew what was going on. Credit cards, it turns out, calculate interest daily, but do not add that interest to the balance until the end of each billing cycle. So, even if you get your balance online (which one might think would be a real-time balance), and pay it online on the day, you are not actually paying the total due. Why would they keep this information from you?
Why do you think?
Unfortunately for me, we paid this one off before getting the statement from the second-to-the-last card, so I was not yet aware of this evil device when we paid this last card off. I decided to make a phone call.
After the typical phone-key menu designed to make a person hang up in frustration I finally reached a human being. I explained the dates and balance paid and reasons for believing that I did not actually owe them another $11.32. The call center professional then began reading their script about how purchases are added...
I stopped him. "We haven't used this card in over a year. There were no new purchases."
He said, "If you would let me continue..." and proceeded to explain how balances are carried over.
I knew exactly what was going on -- they took nine days worth of interest and fees and applied it against the balance before it was paid off. I was arguing that if I took the balance from their website it should be real-time and there should be no balance.
At this point the call was dropped.
I hate cell phones.
I called back. Understand, I knew how it worked and that I was playing their game and they make the rules. The last card I dealt with dropped these charges because, let's face it, it's petty money grubbing. So I get a new call center professional on the line who reads me the exact same script. I have the same argument until I get tired of being told that I am the one who does not understand by a person who clearly can not work off-script. I keep explaining that, if I paid the balance off during the last billing cycle, how do I know that they aren't going to send me a bill next month for the interest and fees on $11.32?
"What do I have to do to pay this thing off and never have to deal with you people again?!"
I was transferred to an executive who tried very hard to save me from ruining my credit by closing such a important account. This person was able to immediately waive the interest charges "as a courtesy" before I had a chance to ask. I explained my frustration in paying off the card and then receiving a bill that the card still carried a balance and complained about their practice.
I was then offered to have all charges waived except for a $.09 fee which was handled by a different office and given the phone number for that office. As I was about to agree to these terms, keep the account open, and call the next office about the last $.09 (which I would have paid regardless of principal), I was told that the others fees were not able to be waived. So I'm back at interest waived, but I still owe all of the fees.
I said, "How can I pay this off, close the account, and never have to deal with [bank name here] again?"
After another volley of how bad the bank would feel for me to lose this grand gold star on my credit report I assured them that I would be just fine to never speak with them again.
I paid $5.09 and felt simultaneously free and like I was taken for a chump.
The balance has shifted too far to Hamilton. If we're really going to make important decisions based on the people and events of 200+ years ago, we need to understand all of the founders. Personally, I'll take Adams and Jefferson.
WTF!?!? Okay, okay, after my last experience with this I pretty much knew what was going on. Credit cards, it turns out, calculate interest daily, but do not add that interest to the balance until the end of each billing cycle. So, even if you get your balance online (which one might think would be a real-time balance), and pay it online on the day, you are not actually paying the total due. Why would they keep this information from you?
Why do you think?
Unfortunately for me, we paid this one off before getting the statement from the second-to-the-last card, so I was not yet aware of this evil device when we paid this last card off. I decided to make a phone call.
After the typical phone-key menu designed to make a person hang up in frustration I finally reached a human being. I explained the dates and balance paid and reasons for believing that I did not actually owe them another $11.32. The call center professional then began reading their script about how purchases are added...
I stopped him. "We haven't used this card in over a year. There were no new purchases."
He said, "If you would let me continue..." and proceeded to explain how balances are carried over.
I knew exactly what was going on -- they took nine days worth of interest and fees and applied it against the balance before it was paid off. I was arguing that if I took the balance from their website it should be real-time and there should be no balance.
At this point the call was dropped.
I hate cell phones.
I called back. Understand, I knew how it worked and that I was playing their game and they make the rules. The last card I dealt with dropped these charges because, let's face it, it's petty money grubbing. So I get a new call center professional on the line who reads me the exact same script. I have the same argument until I get tired of being told that I am the one who does not understand by a person who clearly can not work off-script. I keep explaining that, if I paid the balance off during the last billing cycle, how do I know that they aren't going to send me a bill next month for the interest and fees on $11.32?
"What do I have to do to pay this thing off and never have to deal with you people again?!"
I was transferred to an executive who tried very hard to save me from ruining my credit by closing such a important account. This person was able to immediately waive the interest charges "as a courtesy" before I had a chance to ask. I explained my frustration in paying off the card and then receiving a bill that the card still carried a balance and complained about their practice.
I was then offered to have all charges waived except for a $.09 fee which was handled by a different office and given the phone number for that office. As I was about to agree to these terms, keep the account open, and call the next office about the last $.09 (which I would have paid regardless of principal), I was told that the others fees were not able to be waived. So I'm back at interest waived, but I still owe all of the fees.
I said, "How can I pay this off, close the account, and never have to deal with [bank name here] again?"
After another volley of how bad the bank would feel for me to lose this grand gold star on my credit report I assured them that I would be just fine to never speak with them again.
I paid $5.09 and felt simultaneously free and like I was taken for a chump.
The balance has shifted too far to Hamilton. If we're really going to make important decisions based on the people and events of 200+ years ago, we need to understand all of the founders. Personally, I'll take Adams and Jefferson.
Wednesday, March 30, 2011
I REALLY Hate Credit Cards
I posted a couple weeks ago that the wife and I had paid off our final credit card!
Tonight we were basking in the afterglow of a credit-card-free, productive weekend when my wife looks up from her email and says, "[banking institution]sent me an email saying our statement is ready."
I was immediately angry. "What does the statement say?", I asked.
"Let me look... $6.03. It says we owe $6.03."
I said something not suitable for family radio. To backtrack, this was not even the last card we paid off. This is the same card I wrote about in "I Hate Credit Cards". We checked with the bank before sending in the last payment to make sure we were paying every last cent owed. On the day the final payment went through, my wife called (it was her card) and asked specific questions to verify the balance was indeed zero and the account was indeed closed. She was assured the balance was indeed zero and the account was indeed closed.
Fuming, I asked her for the phone number, account number, and date of the final payment. After the usual keypad gymnastics with the phone I finally got a person on the line. After verifying my identity I explained that we paid the card off on "X" date, we called to verify and were told the balance was zero and the account was closed, and asked how we owe $6.03?
The customer service person on the other end started by saying, "I am taking care of that now. It will take 3-5 days to process, but after that the balance will be zero. Let me explain the charge...".
I was then told that this particular bank calculates interest daily, but only from billing date to billing date. Since two weeks had passed from the last billing date to the date of the last payment, the $6.03 was interest on the balance during that time, and just so I understand, this is how the billing cycle and interest works, but if I call the interest can be waived. I was apologized to that this was not made clear during our last phone call and reassured that the charge was dropped.
I asked one last time, "So, it will take 3-5 days, but then the balance will be zero and the account will be closed?" After being reassured (again) this was indeed true, I said thank you and goodnight.
To sum up, the account was paid in full, we verified that with the bank, they charged us interest anyway, and when we called them on it they dropped it with no question or argument. The sinister part is that they plainly told me, even if you pay your card in full the day your bill arrives (or when you view it online in "real time"), there will be undisclosed interest still owed on the account.
This reeks to me of a scam. Worst case scenario, the bank gets an angry phone call and drops the charge. Probably what usually happens is people will pay one or two occurrences before the angry phone call and the bank makes $6.03 off a few thousand people. Best case scenario is the people who believe the account is closed and let months of interest and late fees build up and, with any luck, can't dig themselves back out of debt this time.
This is the kind of thing We The People need to stand up against. A truly "free market" would never allow a company that treats it's customers and neighbors this way to get "too big to fail". I am so fed up with banks and credit cards and CEOs and executives that live like lords by taking advantage of the have-nots.
It doesn't help that I saw this earlier today.
It's time for a revolt.
Tonight we were basking in the afterglow of a credit-card-free, productive weekend when my wife looks up from her email and says, "[banking institution]sent me an email saying our statement is ready."
I was immediately angry. "What does the statement say?", I asked.
"Let me look... $6.03. It says we owe $6.03."
I said something not suitable for family radio. To backtrack, this was not even the last card we paid off. This is the same card I wrote about in "I Hate Credit Cards". We checked with the bank before sending in the last payment to make sure we were paying every last cent owed. On the day the final payment went through, my wife called (it was her card) and asked specific questions to verify the balance was indeed zero and the account was indeed closed. She was assured the balance was indeed zero and the account was indeed closed.
Fuming, I asked her for the phone number, account number, and date of the final payment. After the usual keypad gymnastics with the phone I finally got a person on the line. After verifying my identity I explained that we paid the card off on "X" date, we called to verify and were told the balance was zero and the account was closed, and asked how we owe $6.03?
The customer service person on the other end started by saying, "I am taking care of that now. It will take 3-5 days to process, but after that the balance will be zero. Let me explain the charge...".
I was then told that this particular bank calculates interest daily, but only from billing date to billing date. Since two weeks had passed from the last billing date to the date of the last payment, the $6.03 was interest on the balance during that time, and just so I understand, this is how the billing cycle and interest works, but if I call the interest can be waived. I was apologized to that this was not made clear during our last phone call and reassured that the charge was dropped.
I asked one last time, "So, it will take 3-5 days, but then the balance will be zero and the account will be closed?" After being reassured (again) this was indeed true, I said thank you and goodnight.
To sum up, the account was paid in full, we verified that with the bank, they charged us interest anyway, and when we called them on it they dropped it with no question or argument. The sinister part is that they plainly told me, even if you pay your card in full the day your bill arrives (or when you view it online in "real time"), there will be undisclosed interest still owed on the account.
This reeks to me of a scam. Worst case scenario, the bank gets an angry phone call and drops the charge. Probably what usually happens is people will pay one or two occurrences before the angry phone call and the bank makes $6.03 off a few thousand people. Best case scenario is the people who believe the account is closed and let months of interest and late fees build up and, with any luck, can't dig themselves back out of debt this time.
This is the kind of thing We The People need to stand up against. A truly "free market" would never allow a company that treats it's customers and neighbors this way to get "too big to fail". I am so fed up with banks and credit cards and CEOs and executives that live like lords by taking advantage of the have-nots.
It doesn't help that I saw this earlier today.
It's time for a revolt.
Thursday, March 17, 2011
If I Could Change Anything...
If I had the opportunity to change one thing -- I'm talking It's A Wonderful Life style -- I would keep the concept of money from ever coming to pass.
Money is an artificial entity. Some might say it was intended to make bartering and trading simpler, but I suspect even then there were ulterior motives. In it's ideal it might serve to make barter and trade easier, but at it's worst it is a beast of manipulation that only serves to promote manipulative people.
I'm not saying Adam Smith was completely wrong. Adam Smith was actually spot-on in the context of what he had to work with. Adam Smith said, "No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable."
Guess where we are, folks?
We have been bought and sold, our futures mortgaged for the consolidation of meaningless paper, coin, and virtual numbers.
At least barter and trade produced something meaningful and/or tangible.
We need to expect to pay more for quality and expect more from those we provide with quality.
I am exhausted trading my resources to entities who fail to live up to what is put out.
What do you think?
Money is an artificial entity. Some might say it was intended to make bartering and trading simpler, but I suspect even then there were ulterior motives. In it's ideal it might serve to make barter and trade easier, but at it's worst it is a beast of manipulation that only serves to promote manipulative people.
I'm not saying Adam Smith was completely wrong. Adam Smith was actually spot-on in the context of what he had to work with. Adam Smith said, "No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable."
Guess where we are, folks?
We have been bought and sold, our futures mortgaged for the consolidation of meaningless paper, coin, and virtual numbers.
At least barter and trade produced something meaningful and/or tangible.
We need to expect to pay more for quality and expect more from those we provide with quality.
I am exhausted trading my resources to entities who fail to live up to what is put out.
What do you think?
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