The so-called "Durbin Fee," because it was the result of legislation introduced and promoted by U.S. Senator Dickhead Durbin (d-for-dummy, IL), has caused Bank of America to charge $5.00 per month for customers who use their debit cards.
Apparently Durbin believed the banks should not make any money by extending the debit card service. However, the banks have to pay third-party businesses to make debit cards functional. So if the banks have to pay for the service and not profit from it, the cost of it goes to the consumer.
There's no such thing as a free lunch, got it?
Durbin and the rest of the socialists (including the more articulate Wall Street Squatters) seem to have this vision of "capitalists" as people who have this closet full of gold bullion or something. And they're hogging it.
Therefore, the feds -- or any "needy person" really -- morally should be able to tap into that huge supply of capital. Or businesses should hire excess workers because "that's the right thing to do."
That's just not the way it works.
Profits -- apparently that huge, unlimited storehouse of gold -- in real life is revenues minus expenses. It's usually calculated as a percentage, and is known as a "profit margin."
Like I made sales of $100.00. My expenses were $90.00. I made a profit of $10.00. That's a 10% profit margin -- which is wa-a-a-a-a-y higher than what most businesses make. And investors, "venture capitalists," like to see a 20% profit margin before they'll sink their money into it. During the dot-com bubbble, a projected 20% profit margin looked possible and sometimes it was. But in most cases, a 20% profit margin is an "in your dreams" kind of thing. Most of the dot-coms failed, you know. At best, they were experimental.
So businesses watch their margins. If sales drop, you have to cut expenses to sustain those margins. You don't want to raise the prices on your products, because that inevitably will slow sales even more. First move is to cut expenses -- either by improving efficiencies, or last-resort, laying off employees. But you don't want to lay off employees because they know your business. Newbies cost a lot of money and usually aren't productive for their first few months or even longer.
In addition, in states like Illinois, employers have to pay fees to cover at least a part of the unemployment checks the state hands out. So the business pays for former employees who are no longer contributing to the business's profits. It's a black hole. A last resort. No business wants to do that.
So there's no warehouse full of unused cash -- there's basically only margins, which are quite fluid and change every day with sales and expense levels.
If you use the law to force businesses to cut their profits, the business loses investors. When they lose investors, they fold. This is particularly true of corporations. No profits or dividends, shareholders sell off their stock, walk away, the corporation folds, or looks around for another business to buy it out.
And no one, not even the feds, can afford to hire people as an act of charity. Employees cost money. A business's profit margins have to be able to support another employee. Or, market demand for your product has to be so hot you need more people to boost production and/or expand sales. Sales cost a lot of money. Support for sales is often the largest expense on the balance sheet. And when you add thousands of dollars onto the cost of an employee -- like through Obamacare -- you're making it much harder for businesses to hire new people.
See how easy that is, Dickie? See how stupid and destructive your blockhead legislation is? See why you're to blame for all the ticked off Bank of America customers?
See, Dickhead, because you don't understand anything about capitalism, you're destroying the whole very delicately balanced free enterprise system. It's like you just threw a rock through the front window. And you're so damn ignorant, you don't even understand that. Go ahead, go squat on Wall Street with the people who share your fantasy vision how the economy is divided into "fat cats" and "pathetic starving workers." Go and organize the non-productive deadbeats. See who you can get to pay any more to support them.
Dickhead Durbin would not be in office except for the dem machine that runs Chicago. However, Ram Emanual, as Mayor of Chicago, is just now trying to raise property taxes, public transportation fares, and has threatened to -- HORROR OF HORRORS! -- lay off city workers. My God, he's imperiling is voter base. Ram Emanual has got himself in a situation where he's been confronted with -- Hey, no warehouse full of cash! Not in the city, not in the city's businesses, not in taxpayer pockets. He's got himself too close to Main Street.
Socialism doesn't work. It's not based on reality. Got that? How many times do you have to hear it? Don't take my word for it. Just look around.
As the nation collapses around them, Durbin and like-minded blockheads believe the solution is to go out and make a bunch of "I am blameless" speeches. Like, "Yeah, I'm an ignorant blockhead, but you just can't help but love me, right? After all, my heart's in the 'right' place."
And you know what, that's not working, either. Not when it takes food off the table.
Save the Republic.
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