Charging for… Not Charging?
The recent move by Bank of America and others to charge people for using their debit cards provides a porthole into the mind of the corporate person. The corporate person is not a real person that works for a corporation, it is the legal entity that the corporation itself has become – especially in light of recent supreme court rulings.
A corporation is, of course, not really a person and should not be legally treated as such. A corporation much more resembles an ant colony – it’s mindless automatons performing whatever task is needed to satisfy the never-ending hunger of the nest.
Corporations are armies raised to seek profit. There are many ways to make a profit, and to increase your profits. The “free market” fantasy professed by so many politicians (and their corporate owners) promotes the good, old-fashioned way – by making something better than your competitors or somehow offering more value to your customers so that consumers buy more of your products/services.
Another way to make more profit is simply to charge more for the product or service that you already offer. Banks know that it’s a pain for customers to change to another bank, and if gradually ALL the banks charge for the things that used to be free, there won’t be any incentive to change anyway.
To a corporation, an incomplete opportunity to make a profit is seen as a cost. Let me say that again, because it’s an important insight into the inherently disfunctional corporate mindset: If there is some way that money COULD be made, but it is not being fully exploited, that it seen as a LOSS.
Through the lens of this contorted thinking, bankers at BofA and other banks realized that they make lots of money when customers use credit cards, but not debit cards. Hmmmm… How to fix this? It’s simple: charge your customers for using their own money.
How do banks and other corporations get away with changing the basic terms of a debit card or other contract? When you enter into an agreement with a corporation, say for a bank account or something like cell-phone service, the contract explicitly states: “This agreement is subject to change.” What???? Well I certainly don’t have the power to change it. Only they can change it and, guess what? It’s never once been to my benefit.
I’m writing my bank now, in type size 2 (here’s an example), and informing them that they are now paying me 99% interest on my deposits – weekly. I’m sure it will work.
Tom Rossi is a commentator on politics and social issues. He is a Ph.D. student in International Sustainable Development, concentrating in natural resource and economic policy. Tom greatly enjoys a hearty debate, especially over a hearty pint of Guinness.
Tom also posts on thrustblog.blogspot.com