You know, sometimes a subject can be researched so much that any point you wanted to make originally could get lost in the universe of TMI (too much information). I began researching the history of credit cards for a lot of reasons, but the most important reason I had for doing so was because I was sure that the over availability of credit cards was responsible for the escalating cost of goods and services. Unfortunately, what I found was a ton of information that lead to a largely unregulated global market that most blame for the lack of good paying jobs in their immediate areas. That's not where I wanted to focus my attention. So I'll just tell you what I think and let you all agree or disagree without having to do any research--just allow your own experience to determine how you think.
When I was a kid, I didn't know one person who had a Visa or Mastercard, but that was in the late 50s and early 60s (1900's). Goods in America were made in America unless you went to a fancy out of the way foreign store. Those were special and the goods, depending on quality were higher in price because they were not readily available, except in little Italys, Chinatowns, etc., in which case they would be much more affordable. So how did a large family with one adult working buy their clothes, their fabric to make clothes and such hard goods? Well first of all, stores like Hartfords, J.C. Pennys, Sears and Roebucks, etc. were affordable, but for those on a budget, they offered a Lay-a-way program. This allowed everyone to do their shopping in advance, pay a little at a time until everything was paid, and this was such a cool way of doing things. No one went into debt to have their seasonal needs met. This was a truly American concept that was very helpful and kept more Americans within their budget.
When Visa really began to take off in the mid 60s, just 10 years after their introduction, Mastercard joined in on the available credit programs. One by one, stores quit offering lay-a-way and more and more Americans became addicted to the credit card cycle. Suddenly, people didn't have to wait for their goods, they could have them right now and worry about paying for them later. You just knew each time a store began offering their own credit cards, they would soon do away with the lay-a-way program and sure enough, that's exactly what happened and still happens.
Because Americans suddenly became needy in a "must have it right now" kind of way, credit card companies made it possible for corporations to double and triple in size and charge more for their goods, which they in turn blamed it all on an antiquated supply and demand principle stemming from the late 1800's. Credit Card companies think of themselves as the saviors of capitalism, meanwhile, those who got themselves into a pickle see them as more of a dark blemish that won't go away. The more in debt you are, the more higher your interest rates go, unless you are a corporation in good standing.
When 9/11 happened our president asked us to go shopping. Just how were we supposed to do that? Credit cards, that's how.
Now we have the housing market fiasco and a growing identity theft problem, most of it caused by our use of credit cards! Say what? I can hear some of you now, "That's a stretch, Chelle, even for you." But, dig this. To qualify for a home loan, you need a good credit score which depends predominantly on your available credit/debt ratio and your payment history. More people have credit card history than they do a home loan history. It's the same thing when you take out an auto loan; you must have a good credit history to qualify for a lower interest auto loan. Credit card companies report your private information to the credit bureaus which are private entities and they in turn determine your credit worthiness or the lack thereof. Their practices and ineptitudes are not fully disclosed to the public yet they are the Jesus connecting you, the needy consumer, to the corporate gods. Now we pay more for our property and more for our transportation and it will keep going up, up, up because they all want to feed their bottom lines. Who cares if those that "qualify" can really handle the debt?
As a result, we have an astronomical fiasco in home foreclosures as well as a fast growingenterprise in vehicle repossession. So, who is bailing these greedy lenders out of their zealous losses? We are, through the federal government. Who is floating our Federal Government? Foreigners like China.
The way I see it, it was no accident that most of our industries located their manufactoring in China. They have deplorable environmental standards and terrible ethics regarding human life, plus, they are communists just ripe for infecting with capitalism. Once most of our ducks are driving their economy, we can poison the products coming from them and blame them for it thus breaking their economy and reclaiming our rights to our property, leaving them broken and dependent upon us instead of the other way around. Who would ever suspect us for behaving in such an evil way? After all, everyone knows China doesn't care about the environment or human life, right? No one would dare ever suspect that American and Western corporations would be behind any of this, right? They are the saints who came to offer the Chinese a better way of life, right?
It all began with the over availability of credit cards and the only way to cure this problem is to refuse to subscribe to lending practices, even home loans. You can't afford it, you don't get it. People will turn to each other for help as they once did, and you know what? No corporation would control elections, our happiness, or our governments ever again. Problem is, I have no faith in the rest of you folks. You are too needy. You want it right now. So, we bought the future of our grandchildren. Trouble is, we can't afford it. That's all for now.
