Mugged American Style – Bank of America Debit Card Fees

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The latest outrage to be thrust upon an economically beaten down American populace was the announcement that the nation’s largest bank, Bank of America, will begin charging customers $5 per month to use debit cards to make purchases. Excuse me, if you let me hold your money, I will charge you when you spend it. Do we have a deal?

Now some of the same institutions involved in taking down the economy are now involved in a near literal shakedown of the very citizens that bailed them out with taxpayer funds. The economic collapse that burst forth during the last few months of 2008 has been long lasting and deep. Millions of Americans were flushed out of the workforce and over 14 million still find themselves unemployed and seemingly unemployable. In many ways this was a double crime with hardworking citizens in the United States being initially mugged by those manipulating our financial system and then taken hostage by politicians corrupting our political process. As this socioeconomic terrorism was taking place, the wealth of those caught in the crossfire was melting away as they strove to survive by burning through personal savings, retirement funds and other assets of value. While millions were free falling from their former positions on the economic ladder, the wealthy were becoming wealthier. The future of the United States will be decided by a struggle between new age robber barons aided by their political enablers versus sane, rational Americans seeking to return this nation to its full former glory. A fee to use your money is one more insult on top of injury.

What are besieged consumers to do? A system has been set up that runs on electronic transactions from using debit cards, online bill payment and electronic funds transfer. Sure banks have invested in worldwide automated teller systems but that saved manpower costs and allowed them to operate with fewer physical branch offices. ATMs don’t take weekly salaries, health insurance or vacations. This is strictly about taking money out of the hide of customers since new regulations limit how much banks could charge merchants to process transactions so it went to its own account holders. This $5 fee does not hit everyone. Account holders with larger average balances can avoid the fee so it really only hits those that can least afford it, is this the new American way.

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Wage Gap - Rich Men, Poor Men

There is an increasing wage gap between the top executives of companies and other workers. Top executives in some large companies live a life of luxury with private jets at their disposal. What caused this view that only those at the top really matter?

An article titled “Executive pay drives increasing wage gap” by Peter Whoriskey June 20, 2011 and published in the Seattle Times looks into the pay gap using one company as an example. The pay and perks of the CEO of this company have increased exponentially since 1970 while in real terms the pay of rank and file workers have decreased.

There may be one factor helping to drive the view of increasing value of executives versus less value of other workers, automation. The increased use of automated systems in everything from manufacturing to sales helps create a view that workers are simply attached or enable the automation. The workers monitor the automated systems or fill in gaps of processes that the technology can’t perform. Customer relationship management systems in sales capture vital customer data and give alerts on follow up dates that sales representatives carries out. Although the system does a lot, it can’t actually make the calls. The automated manufacturing systems need skilled individuals to keep them operating at top levels. Simply put, the skill, concern and dedication of individual employees determine the quality of the final product and services a company delivers.

We have entered the era of no-lose situations for many CEOs. Golden parachutes contain payouts so large that they are disconnected to the success or failure of the firm or performance of the executives. Some of those same executives have instituted policies during this recession that restrict hiring permanent employees in favor of bringing on contract workers. Many firms are creating jobs in foreign markets instead of the United States.

The bottom line is the excessive levels of pay and perks for top executives totally disconnect them from other workers in their companies. This situation creates an environment of class warfare instead of unity.