Lower Swipe Fees Won’t Help Consumers
by Tom Hinton
One provision of the financial reform legislation passed last year by Congress requires the Federal Reserve to issue rules that place reasonable limits on debit card fees. Commonly known as Interchange Fees or Swipe Fees, these small fees are what banks and credit unions charge merchants for processing each and every use of your debit card. Merchants pay the fee, but often pass on these fees to consumers as a cost of doing business. Of course, banks and credit unions that issue debit cards have come to rely on swipe fees as a healthy profit center.
In December, the Federal Reserve proposed capping fees at 12 cents per transaction, down from an average of 44 cents. While such a drastic cut in debit card interchange fees should be welcome news for consumers, the truth is consumers will never see a penny of that savings! In fact, consumers will most likely end up paying more money to their banks and credit unions because financial institutions will have to make up for that lost revenue somehow, someway.
The Interchange Fees issue is one more example of how Congress – while well-intentioned – has turned lemonade into lemons! Nobody wins. Banks and credit unions, which rarely agree on anything, are aligned against the Fed proposal to lower fees because they will take a direct hit in terms of lost revenue. On the other hand, merchants can’t wait for the Fed’s gift, which according to economic experts, will result in a $12 Billion savings for Main Street. And, as usual, consumers get the short-end of the stick because merchants are not required to pass on any debit card fee reductions to us. To make matters worse, consumers face the possibility of losing their free checking accounts and seeing lower deposits rates by banks and credit unions. This issue could also trigger tighter credit rules being introduced by banks and credit unions to protect them from further credit defaults by consumers.
In the final analysis, the Interchange Fees (Swipe Fees) issue is a hot potato that will not only burn the Federal Reserve, but also banks, credit unions and America’s consumers. We think the Fed should drop it until things cool down and a more rational solution is found.
About the Author:
Tom Hinton is president of the American Consumer Council, a non-profit consumer education organization with 111,000 members. He is also a popular business author and speaker who frequently contributes articles on consumer issues and business excellence. He can be reached at tom@americanconsumercouncil.org
Monday, May 16, 2011
Wednesday, February 2, 2011
What Consumer-Citizens of the World Really Want: The Egyptian Lesson
by Thomas Hinton
It’s both disturbing and encouraging to see the strife taking place in Egypt and Tunisia. In America, we take for granted so many of our basic rights and entitlements that are causing millions of citizens to take to the streets in protest of the policies of their authoritarian governments. It’s disturbing because the very rights and opportunities these people are demanding are basic economic building blocks that every citizen should enjoy regardless of where they live or the religion they practice – freedom of speech, the opportunity to live in an economic environment that offers hope for a better life, and the right to assemble without being shot or attacked by armed thugs operating under the guise of self-serving politicians.
What is playing out in Egypt and Tunisia is also encouraging because the voice of the people is finally being heard. And, it is being heard not only in the streets, but within the inner sanctums of every repressive government around the world.
Some commentators have suggested the Arab uprisings are being fueled by fanatics and religious extremists. There’s little, if any, evidence to support such claims. I believe these protests are the result of frustrated consumers who see unlimited economic opportunities in neighboring countries and throughout western societies. Unfulfilled, exasperated and without any chance to climb the economic ladder of success, these well-intentioned protesters are asking a basic human question of their tyrannical leaders: “Why can’t we enjoy the good life?” Not only is it a fair question, but one that every government should respond to or face defeat. But, governments that exploit their citizenry don’t believe they need to answer such questions because they are not in the business of lifting-up the masses. They’re in the business of suppressing human and economic rights and controlling citizens in brutal fashion.
This is why leaders like ousted Tunisian President Zine El Abidine Ben Ali and Egypt’s President Hosni Mubarak do not remain in power. People will only tolerate so much before they take to the streets. What is happening in Egypt and Tunisia are consumer-citizens demanding the same economic opportunities afforded to a handful of people in their country and the chance to enjoy the fruits of their labor. Certainly, that is a fair demand.
No nation’s leadership can suppress the population forever and outlast the will of its people. This is why I believe there is still great economic hope for the people of Iran, North Korea, Libya, Myanmar, North Korea, Somalia, China, Sudan, Turkmenistan and Uzbekistan. As we have seen in Egypt, it only takes a few thousand people to ignite the flames of economic freedom and bring about significant constitutional change as well as new political leadership.
In this era of social networking and instant global communication, it’s not surprising that on a Friday afternoon, a handful of well-intentioned thought leaders can tweet or Facebook their friends to rally in the main square and, by Monday morning, ministers are resigning and corrupt leaders are making plans to flee the country.
Frankly, it’s consumerism at its best!
About the Author: Thomas Hinton is president of the American Consumer Council, a non-profit consumer education organization with over 107,000 members. He can be reached at tom@americanconsumercouncil.org
It’s both disturbing and encouraging to see the strife taking place in Egypt and Tunisia. In America, we take for granted so many of our basic rights and entitlements that are causing millions of citizens to take to the streets in protest of the policies of their authoritarian governments. It’s disturbing because the very rights and opportunities these people are demanding are basic economic building blocks that every citizen should enjoy regardless of where they live or the religion they practice – freedom of speech, the opportunity to live in an economic environment that offers hope for a better life, and the right to assemble without being shot or attacked by armed thugs operating under the guise of self-serving politicians.
What is playing out in Egypt and Tunisia is also encouraging because the voice of the people is finally being heard. And, it is being heard not only in the streets, but within the inner sanctums of every repressive government around the world.
Some commentators have suggested the Arab uprisings are being fueled by fanatics and religious extremists. There’s little, if any, evidence to support such claims. I believe these protests are the result of frustrated consumers who see unlimited economic opportunities in neighboring countries and throughout western societies. Unfulfilled, exasperated and without any chance to climb the economic ladder of success, these well-intentioned protesters are asking a basic human question of their tyrannical leaders: “Why can’t we enjoy the good life?” Not only is it a fair question, but one that every government should respond to or face defeat. But, governments that exploit their citizenry don’t believe they need to answer such questions because they are not in the business of lifting-up the masses. They’re in the business of suppressing human and economic rights and controlling citizens in brutal fashion.
This is why leaders like ousted Tunisian President Zine El Abidine Ben Ali and Egypt’s President Hosni Mubarak do not remain in power. People will only tolerate so much before they take to the streets. What is happening in Egypt and Tunisia are consumer-citizens demanding the same economic opportunities afforded to a handful of people in their country and the chance to enjoy the fruits of their labor. Certainly, that is a fair demand.
No nation’s leadership can suppress the population forever and outlast the will of its people. This is why I believe there is still great economic hope for the people of Iran, North Korea, Libya, Myanmar, North Korea, Somalia, China, Sudan, Turkmenistan and Uzbekistan. As we have seen in Egypt, it only takes a few thousand people to ignite the flames of economic freedom and bring about significant constitutional change as well as new political leadership.
In this era of social networking and instant global communication, it’s not surprising that on a Friday afternoon, a handful of well-intentioned thought leaders can tweet or Facebook their friends to rally in the main square and, by Monday morning, ministers are resigning and corrupt leaders are making plans to flee the country.
Frankly, it’s consumerism at its best!
About the Author: Thomas Hinton is president of the American Consumer Council, a non-profit consumer education organization with over 107,000 members. He can be reached at tom@americanconsumercouncil.org
Friday, January 21, 2011
The Jobs Factor: Leadership is at the Core of Apple's Success
It's fascinating to observe the transformation taking place at Apple as co-founder and CEO Steve Jobs prepares to take another medical leave of absence. Given the fact that Apple stock is ranked second only to ExxonMobil in terms of its market value, there's much at stake as Jobs steps down albeit temporarily. Despite jobs' reassurance that he will remain engaged in major decisions, Apple stock has fluctuated mildly since his announcement. Analysts and stock strategists are obviously concerned about Apple's future without Steve Jobs, but so far, that concern is not stopping investors from purchasing Apple stock. Of greater concern to Apple are the millions of devoted Apple fans around the world who have come to rely on the company and its CEO as their compass for high-tech innovation and wizardry. So far, Apple's adoring fans are solidly behind the company and comfortable with Jobs' medical leave decision.
As one who teaches managers how to become better leaders, I'm intrigued by the "Jobs Factor" as I like to call it. There's no question that Steve Jobs is the face of Apple. As USA Today reported, during Jobs' second term as CEO, which began in August 1997, Apple's stock has soared more than 7,273% versus a 67% gain for Standard & Poor's 500-stock index. That's impressive whether you're an Apple fan or not! It's clear that as CEO, Jobs has inspired a rebirth at Apple leading to such innovative marvels as the iPod, iPhone, iPad, Apple Stores and the burgeoning industry knows as Apps – slang for Applications – that support all these new products. In short, Apple has transformed how a generation communicates, learns, listens to music and socializes. Steve Jobs continues to demonstrate his brilliance and his Midas touch.
Over the past 100 years, very few leaders have had as great an impact on transforming our world as Steve Jobs. Certainly Thomas Edison, Alfred Sloan (GM), Sam Walton (WalMart), Walt Disney, Bill Gates (Microsoft), Henry Ford, Thomas J. Watson (IBM), Ray Kroc (McDonalds), Estee Lauder, Richard Branson (Virgin), Philip H. Knight (Nike), Facebook founder Mark Zuckerberg and Jack Welch (GE) merit mention. In 2005, Fast Company published an outstanding list of the 100 Greatest Business Leaders of the 20th Century which included Steven P. Jobs at #26.
And so, as Steve Jobs prepares to step aside as CEO for medical reasons, the question behind the question is this. First, will Apple continue its rabid success once Steve Jobs steps down? Secondly, how does a company like Apple design a succession plan to ensure the company's continued success and growth? The second question is profoundly important when the CEO, Steve Jobs, is considered a god among his colleagues, competitors and the business media. The fact is that while Tim Cook can succeed him, no one can replace Steve Jobs.
While no one knows the answers to these key questions, I think Steve Jobs has a surprise in store for all of us. I think Jobs' greatest contribution to Apple will be revealed as he steps aside as CEO and allows Apple's senior leadership team to stand on its own. Remember, Steve Jobs has hired, trained and developed these people over the past 14 years. Jobs' goal has been to ensure Apple's profitability and product success will continue long after he is gone.
Interestingly, for Steve Jobs, this is not unchartered territory. When Jobs resigned as Apple CEO in September 1985 after a bitter confrontation with his board of directors, he was succeeded by a series of less-than-successful CEOs. During Jobs' 12-year absence from Apple, he had time to reflect on his successes and mistakes as a leader, innovator and business strategist. One of the mistakes Jobs acknowledged and vowed not to repeat was hiring the wrong people to lead the largest (and greatest) technology company in the world.
Now, Steve Jobs can step aside knowing he has in place a solid executive management team with capable leaders like Chief Operating Officer Tim Cook and Chief Financial Officer Peter Oppenheimer. These leaders have been schooled in how Jobs thinks and fosters creativity and innovation at Apple. They embrace the Apple culture and will maintain its current course to greater successes. Despite the concerns that Steve Jobs' temporary departure from Apple is causing to Wall Street and the business media, I am confident that Apple will continue to outperform its competition because Steve Jobs has learned how to create a culture of excellence and innovation that now permeates all levels of the world's greatest tech company.
About the Author: Tom Hinton is president and CEO of the American Consumer Council. The author of four books, Mr. Hinton is a popular speaker at corporate and association meetings on Leadership, Customer Service and Creating a Culture of Excellence in the Workplace. For information, contact: tom@americanconsumercouncil.org
As one who teaches managers how to become better leaders, I'm intrigued by the "Jobs Factor" as I like to call it. There's no question that Steve Jobs is the face of Apple. As USA Today reported, during Jobs' second term as CEO, which began in August 1997, Apple's stock has soared more than 7,273% versus a 67% gain for Standard & Poor's 500-stock index. That's impressive whether you're an Apple fan or not! It's clear that as CEO, Jobs has inspired a rebirth at Apple leading to such innovative marvels as the iPod, iPhone, iPad, Apple Stores and the burgeoning industry knows as Apps – slang for Applications – that support all these new products. In short, Apple has transformed how a generation communicates, learns, listens to music and socializes. Steve Jobs continues to demonstrate his brilliance and his Midas touch.
Over the past 100 years, very few leaders have had as great an impact on transforming our world as Steve Jobs. Certainly Thomas Edison, Alfred Sloan (GM), Sam Walton (WalMart), Walt Disney, Bill Gates (Microsoft), Henry Ford, Thomas J. Watson (IBM), Ray Kroc (McDonalds), Estee Lauder, Richard Branson (Virgin), Philip H. Knight (Nike), Facebook founder Mark Zuckerberg and Jack Welch (GE) merit mention. In 2005, Fast Company published an outstanding list of the 100 Greatest Business Leaders of the 20th Century which included Steven P. Jobs at #26.
And so, as Steve Jobs prepares to step aside as CEO for medical reasons, the question behind the question is this. First, will Apple continue its rabid success once Steve Jobs steps down? Secondly, how does a company like Apple design a succession plan to ensure the company's continued success and growth? The second question is profoundly important when the CEO, Steve Jobs, is considered a god among his colleagues, competitors and the business media. The fact is that while Tim Cook can succeed him, no one can replace Steve Jobs.
While no one knows the answers to these key questions, I think Steve Jobs has a surprise in store for all of us. I think Jobs' greatest contribution to Apple will be revealed as he steps aside as CEO and allows Apple's senior leadership team to stand on its own. Remember, Steve Jobs has hired, trained and developed these people over the past 14 years. Jobs' goal has been to ensure Apple's profitability and product success will continue long after he is gone.
Interestingly, for Steve Jobs, this is not unchartered territory. When Jobs resigned as Apple CEO in September 1985 after a bitter confrontation with his board of directors, he was succeeded by a series of less-than-successful CEOs. During Jobs' 12-year absence from Apple, he had time to reflect on his successes and mistakes as a leader, innovator and business strategist. One of the mistakes Jobs acknowledged and vowed not to repeat was hiring the wrong people to lead the largest (and greatest) technology company in the world.
Now, Steve Jobs can step aside knowing he has in place a solid executive management team with capable leaders like Chief Operating Officer Tim Cook and Chief Financial Officer Peter Oppenheimer. These leaders have been schooled in how Jobs thinks and fosters creativity and innovation at Apple. They embrace the Apple culture and will maintain its current course to greater successes. Despite the concerns that Steve Jobs' temporary departure from Apple is causing to Wall Street and the business media, I am confident that Apple will continue to outperform its competition because Steve Jobs has learned how to create a culture of excellence and innovation that now permeates all levels of the world's greatest tech company.
About the Author: Tom Hinton is president and CEO of the American Consumer Council. The author of four books, Mr. Hinton is a popular speaker at corporate and association meetings on Leadership, Customer Service and Creating a Culture of Excellence in the Workplace. For information, contact: tom@americanconsumercouncil.org
Monday, November 22, 2010
Getting Through Airport Security This Holiday Season
by Thomas Hinton
There’s been a lot of huffing, puffing and whimpering lately about the Transportation Security Administration's (TSA) tough new airline boarding security checks. Some people are threatening to stage protests in the TSA screening lines and disrupt Thanksgiving and Christmas holiday travel for the rest of us. This would be a serious mistake. It would also be an act of pure stupidity, selfishness and change nothing.
As a frequent traveler, I don’t like having to unpack my liquids, take off my belt and shoes and walk barefoot through metal detectors or a band scan machine. But, let’s get real, folks. We live in an era where very bad people hate you and want to do bad things to Americans. I certainly don’t want to be on an airplane where the passengers were not screened because someone felt their personal privacy was being invaded or their constitutional rights trampled by a government employee. Are you kidding me?
While I don’t like to operate from a fear-based mindset, I know the terrorist threat is real and we cannot afford to allow the bad guys to slip through our national security net because a small group of well-intentioned citizens don’t like going through the airport screening device or getting body pat downs. That’s too bad. They’ll need to adjust to the times we live in.
Let’s look at the facts. First, a relatively small number of the 34 million people who have flown since the new procedures went into effect have been subject to body pat downs that have come under withering criticism in recent days. While the process is somewhat invasive, it’s necessary as terrorists come up with innovative ways to blow up airplanes and disrupt our way of living. So, until we can find innovative ways (to screen passengers) that are less invasive and time-consuming, I suggest we get in the queue and make the best of an unpleasant -- albeit brief -- experience. Smile, follow the instructions and just deal with it.
Can you imagine the consequences of not screening passengers? As we already know, it only takes one madman to disrupt a flight or bring down an airplane. It would be irresponsible and selfish for anyone to organize delaying actions or contest body scans once they are in line at the airport. It will only result in delaying thousands of travelers who want to go home and see their loved ones for the holidays. The TSA is not going to compromise on airport security procedures nor should they.
So, here’s my advice. You don’t need to like the current screening procedures or the time-consuming process. But, you need to think through your choices and consequences. Your choices are simple. If you disapprove of the current TSA screening procedures at the airports, you don’t have to fly. You can drive, take a bus, train or stay home. You can also picket outside the airport with a big sign that is sure to attract the media.
But don’t come to the airport with your bags packed and airline boarding pass ticket in hand with the intention of disrupting my boarding process and, possibly, causing me to miss my flight and lose precious time with my family this holiday season. I will not take kindly to your selfish and stupid act. Neither will those three huge rugby players behind me. They might just want to see if you can fly through a body scanner – head first!
Finally, be kind to the TSA employees. Thank them for doing a thankless job this Thanksgiving. They deal with enough idiots as it is. I’m sure they’d rather be home with their families than padding down your sweaty armpits and over-sized buttocks!
About the Author: Thomas Hinton is president of the American Consumer Council, a consumer education organization with over 100,000 members and 44 state consumer councils across the United States. Email: tom@americanconsumercouncil.org
There’s been a lot of huffing, puffing and whimpering lately about the Transportation Security Administration's (TSA) tough new airline boarding security checks. Some people are threatening to stage protests in the TSA screening lines and disrupt Thanksgiving and Christmas holiday travel for the rest of us. This would be a serious mistake. It would also be an act of pure stupidity, selfishness and change nothing.
As a frequent traveler, I don’t like having to unpack my liquids, take off my belt and shoes and walk barefoot through metal detectors or a band scan machine. But, let’s get real, folks. We live in an era where very bad people hate you and want to do bad things to Americans. I certainly don’t want to be on an airplane where the passengers were not screened because someone felt their personal privacy was being invaded or their constitutional rights trampled by a government employee. Are you kidding me?
While I don’t like to operate from a fear-based mindset, I know the terrorist threat is real and we cannot afford to allow the bad guys to slip through our national security net because a small group of well-intentioned citizens don’t like going through the airport screening device or getting body pat downs. That’s too bad. They’ll need to adjust to the times we live in.
Let’s look at the facts. First, a relatively small number of the 34 million people who have flown since the new procedures went into effect have been subject to body pat downs that have come under withering criticism in recent days. While the process is somewhat invasive, it’s necessary as terrorists come up with innovative ways to blow up airplanes and disrupt our way of living. So, until we can find innovative ways (to screen passengers) that are less invasive and time-consuming, I suggest we get in the queue and make the best of an unpleasant -- albeit brief -- experience. Smile, follow the instructions and just deal with it.
Can you imagine the consequences of not screening passengers? As we already know, it only takes one madman to disrupt a flight or bring down an airplane. It would be irresponsible and selfish for anyone to organize delaying actions or contest body scans once they are in line at the airport. It will only result in delaying thousands of travelers who want to go home and see their loved ones for the holidays. The TSA is not going to compromise on airport security procedures nor should they.
So, here’s my advice. You don’t need to like the current screening procedures or the time-consuming process. But, you need to think through your choices and consequences. Your choices are simple. If you disapprove of the current TSA screening procedures at the airports, you don’t have to fly. You can drive, take a bus, train or stay home. You can also picket outside the airport with a big sign that is sure to attract the media.
But don’t come to the airport with your bags packed and airline boarding pass ticket in hand with the intention of disrupting my boarding process and, possibly, causing me to miss my flight and lose precious time with my family this holiday season. I will not take kindly to your selfish and stupid act. Neither will those three huge rugby players behind me. They might just want to see if you can fly through a body scanner – head first!
Finally, be kind to the TSA employees. Thank them for doing a thankless job this Thanksgiving. They deal with enough idiots as it is. I’m sure they’d rather be home with their families than padding down your sweaty armpits and over-sized buttocks!
About the Author: Thomas Hinton is president of the American Consumer Council, a consumer education organization with over 100,000 members and 44 state consumer councils across the United States. Email: tom@americanconsumercouncil.org
Wednesday, November 17, 2010
Where Do We Go From Here?
by Thomas Hinton
The lame-duck Congress reconvened this week in Washington following the November 2nd election. You would think Congress would have a sense of urgency to act on major issues affecting our economy and consumers, but it appears not much will get done in the next six weeks. This is unfortunate because there is a sense of urgency among millions of consumers who are unemployed and cannot find work. It’s unfortunate because there are millions of homeowners who face foreclosure as well as declining home values and cannot sell their homes.
While many economists proclaimed the recession is over, if you look around at the shuttered storefronts and discontent among voters, it apparent our economy is not improving fast enough for most consumers. Regrettably, there is a growing sense of resignation among millions of Americans that things will not get better in the near term.
What can Congress do in the short-term to get our economy back on track? I recommend the following five steps:
1. Make the Bush tax cuts permanent. The more money we can place in the hands of consumers, the faster are economic revival will happen. Yes, we have a serious national debt, but once our economy gets back on track, federal revenues will outpace borrowing and the debt will decline. Also, it’s time to seriously reconsider the flat tax idea so everyone (and every corporation) pays their fair share. Congress should eliminate tax deductions (except for charities and college tuition) and simplify the tax laws so all Americans can pay a fair tax and feel good about it.
2. Incentivize Small Businesses to hire people. Congress should enact legislation that provides small businesses with a $15,000 tax credit for each person they hire to work for 35 hours or more a week. Small business is the backbone of America’s economy and until small businesses start hiring people, our economy will crawl along.
3. Solve the Foreclosure Mess. Congress should redirect already-approved stimulus funds to homeowners-in-distress to help them remain in their houses. In does no good to throw families out on the streets. It’s bad for the families, it’s bad for the city tax rolls and abandoned homes cause serious legal problems for lenders and neighborhoods. Reduce mortgage payments by 50% for a five-year period until homeowners can get back on their feet and the economy rebounds.
4. Cut Government Spending. There’s too much waste and duplication at the state and federal levels. Government must provide the basic needs of fire, police, roads, parks, education, courts/prisons, child protection and the DMV. Beyond that, everything else needs to be re-evaluated based on our ability to pay for it. This includes salaries and benefits for elected officials at all levels of government as well as reducing pensions and matching pension contributions to reasonable levels.
5. Cooperate. Americans are sick and tired of the in-fighting and political posturing that takes place in Washington and the state capitals. Consumers want results. We really don’t care who gets credit as long as our elected officials get the job done. So, check your egos at the doors, roll up your sleeves and start doing the job you were elected to do.
Finally, we should be reminded that earlier this year, President Obama appointed the Debt Reduction Committee to examine the national debt and bring forward recommendations on how to close the gap. The Commission’s plan calls for deep cuts in domestic and military spending, a gradual 15-cent-a-gallon increase in the federal gasoline tax, limiting or eliminating popular tax breaks in return for lower rates, and benefit cuts and an increased retirement age for Social Security.
Those changes and others, none of which would take effect before 2012 to avoid undermining the tepid economic recovery, would erase nearly $4 trillion from projected deficits through 2020, the proposal says, and stabilize the accumulated debt.
Both liberal and conservative groups will condemn much of the Debt Commission’s plan because no one likes to disrupt the status quo. But, that’s precisely what’s got us into this mess and, frankly, it’s why voters rebelled on November 2nd and re-structured Congress.
So, it would serve the current lame-duck Congress well to remember what voters want and need. To delay action on these vital issues will only exacerbate our problems and stall a meaningful economic recovery for all Americans.
About the Author. Thomas Hinton is president & CEO of the American Consumer Council, a non-profit consumer education organization with over 100,000 members in all 50 states. Contact: tom@americanconsumercouncil.org
The lame-duck Congress reconvened this week in Washington following the November 2nd election. You would think Congress would have a sense of urgency to act on major issues affecting our economy and consumers, but it appears not much will get done in the next six weeks. This is unfortunate because there is a sense of urgency among millions of consumers who are unemployed and cannot find work. It’s unfortunate because there are millions of homeowners who face foreclosure as well as declining home values and cannot sell their homes.
While many economists proclaimed the recession is over, if you look around at the shuttered storefronts and discontent among voters, it apparent our economy is not improving fast enough for most consumers. Regrettably, there is a growing sense of resignation among millions of Americans that things will not get better in the near term.
What can Congress do in the short-term to get our economy back on track? I recommend the following five steps:
1. Make the Bush tax cuts permanent. The more money we can place in the hands of consumers, the faster are economic revival will happen. Yes, we have a serious national debt, but once our economy gets back on track, federal revenues will outpace borrowing and the debt will decline. Also, it’s time to seriously reconsider the flat tax idea so everyone (and every corporation) pays their fair share. Congress should eliminate tax deductions (except for charities and college tuition) and simplify the tax laws so all Americans can pay a fair tax and feel good about it.
2. Incentivize Small Businesses to hire people. Congress should enact legislation that provides small businesses with a $15,000 tax credit for each person they hire to work for 35 hours or more a week. Small business is the backbone of America’s economy and until small businesses start hiring people, our economy will crawl along.
3. Solve the Foreclosure Mess. Congress should redirect already-approved stimulus funds to homeowners-in-distress to help them remain in their houses. In does no good to throw families out on the streets. It’s bad for the families, it’s bad for the city tax rolls and abandoned homes cause serious legal problems for lenders and neighborhoods. Reduce mortgage payments by 50% for a five-year period until homeowners can get back on their feet and the economy rebounds.
4. Cut Government Spending. There’s too much waste and duplication at the state and federal levels. Government must provide the basic needs of fire, police, roads, parks, education, courts/prisons, child protection and the DMV. Beyond that, everything else needs to be re-evaluated based on our ability to pay for it. This includes salaries and benefits for elected officials at all levels of government as well as reducing pensions and matching pension contributions to reasonable levels.
5. Cooperate. Americans are sick and tired of the in-fighting and political posturing that takes place in Washington and the state capitals. Consumers want results. We really don’t care who gets credit as long as our elected officials get the job done. So, check your egos at the doors, roll up your sleeves and start doing the job you were elected to do.
Finally, we should be reminded that earlier this year, President Obama appointed the Debt Reduction Committee to examine the national debt and bring forward recommendations on how to close the gap. The Commission’s plan calls for deep cuts in domestic and military spending, a gradual 15-cent-a-gallon increase in the federal gasoline tax, limiting or eliminating popular tax breaks in return for lower rates, and benefit cuts and an increased retirement age for Social Security.
Those changes and others, none of which would take effect before 2012 to avoid undermining the tepid economic recovery, would erase nearly $4 trillion from projected deficits through 2020, the proposal says, and stabilize the accumulated debt.
Both liberal and conservative groups will condemn much of the Debt Commission’s plan because no one likes to disrupt the status quo. But, that’s precisely what’s got us into this mess and, frankly, it’s why voters rebelled on November 2nd and re-structured Congress.
So, it would serve the current lame-duck Congress well to remember what voters want and need. To delay action on these vital issues will only exacerbate our problems and stall a meaningful economic recovery for all Americans.
About the Author. Thomas Hinton is president & CEO of the American Consumer Council, a non-profit consumer education organization with over 100,000 members in all 50 states. Contact: tom@americanconsumercouncil.org
Monday, October 25, 2010
Food for Thought as Election Day 2010 Approaches
You can relax. I’m not going to tell you who to vote for on Tuesday, November 2. But, there are some serious issues you should keep in mind when you go into the voting booth.
First, there are a few good candidates on both sides of the aisle. But, there are also some real fruitcakes seeking office! Consider your choices and remember that no egotist or wacko ever led America to a better place. Be prudent when you vote and realize that we are in the midst of a major generational change. One colleague expressed it to me this way. “It’s the establishment against the new age. We can either forge ahead through some rough terrain or surrender our future as well as our hopes and dreams to the special interests in Washington and Wall Street who only care about lining their wallets, and go backwards.” By the way, this comment is from a registered Republican.
I think my colleague accurately reflects the feelings and emotions of so many Americans who are sick and tired of being screwed over by the establishment. This candid assessment on the part of a 34 year-old got me thinking. Our economy is still a mess. We spent hundreds of millions of dollars bailing out the very people who deceived us and now they’re planning to pay themselves over $150 Billion in bonuses according to news accounts! What gives?
To make matters worse, more than 30% of all homeowners are upside down in terms of how much they owe on their mortgages and what their homes are actually worth. It’s reported that 22% of all homeowners face the threat of foreclosure. At the same time, banks and other mortgage lenders are seizing homes using underhanded -- and possibly -- illegal methods instead of working with homeowners to help them stay in their homes, repay their mortgages, maintain their neighborhoods and continue to pay local property taxes. Doesn't that make more sense? Apparently not to bankers!
With regard to unemployment, the figures are dismal. 60 Minutes reported last week that more than 27% of the American workforce is either unemployed, under-employed, surviving on government welfare programs or they’ve quit looking for a job.
Yes, Congress is spineless, beholden to special interests and deserves to be ousted. And, yes, for better or for worse, President Obama has pushed through Wall Street reform, a health care initiative that will insure another 14 million uninsured Americans, and signed major consumer protection legislation to protect citizens from credit card vultures and unscrupulous financial institutions.
As my colleague noted, “It doesn’t seem like we’re making much progress, but from my perspective, we’ve taken a number of baby steps in the past two years, and we’re moving in the right direction.” I agree. Many of these reforms are long overdue and will keep us moving forward as a nation and a society.
Now, if we could only figure out how to retire at age 60 like the French, we’ve have it made! What’s that? The French are raising the national retirement age to 62! OMG! We’re doomed!
About the Author.
Thomas Hinton is president of the American Consumer Council, a non-profit consumer education organization with more than 100,000 members in 44 states. He can be reached at: tom@americanconsumercouncil.org
First, there are a few good candidates on both sides of the aisle. But, there are also some real fruitcakes seeking office! Consider your choices and remember that no egotist or wacko ever led America to a better place. Be prudent when you vote and realize that we are in the midst of a major generational change. One colleague expressed it to me this way. “It’s the establishment against the new age. We can either forge ahead through some rough terrain or surrender our future as well as our hopes and dreams to the special interests in Washington and Wall Street who only care about lining their wallets, and go backwards.” By the way, this comment is from a registered Republican.
I think my colleague accurately reflects the feelings and emotions of so many Americans who are sick and tired of being screwed over by the establishment. This candid assessment on the part of a 34 year-old got me thinking. Our economy is still a mess. We spent hundreds of millions of dollars bailing out the very people who deceived us and now they’re planning to pay themselves over $150 Billion in bonuses according to news accounts! What gives?
To make matters worse, more than 30% of all homeowners are upside down in terms of how much they owe on their mortgages and what their homes are actually worth. It’s reported that 22% of all homeowners face the threat of foreclosure. At the same time, banks and other mortgage lenders are seizing homes using underhanded -- and possibly -- illegal methods instead of working with homeowners to help them stay in their homes, repay their mortgages, maintain their neighborhoods and continue to pay local property taxes. Doesn't that make more sense? Apparently not to bankers!
With regard to unemployment, the figures are dismal. 60 Minutes reported last week that more than 27% of the American workforce is either unemployed, under-employed, surviving on government welfare programs or they’ve quit looking for a job.
Yes, Congress is spineless, beholden to special interests and deserves to be ousted. And, yes, for better or for worse, President Obama has pushed through Wall Street reform, a health care initiative that will insure another 14 million uninsured Americans, and signed major consumer protection legislation to protect citizens from credit card vultures and unscrupulous financial institutions.
As my colleague noted, “It doesn’t seem like we’re making much progress, but from my perspective, we’ve taken a number of baby steps in the past two years, and we’re moving in the right direction.” I agree. Many of these reforms are long overdue and will keep us moving forward as a nation and a society.
Now, if we could only figure out how to retire at age 60 like the French, we’ve have it made! What’s that? The French are raising the national retirement age to 62! OMG! We’re doomed!
About the Author.
Thomas Hinton is president of the American Consumer Council, a non-profit consumer education organization with more than 100,000 members in 44 states. He can be reached at: tom@americanconsumercouncil.org
Wednesday, April 28, 2010
Americans Can Learn the Art of Customer Service from Asia
by Thomas Hinton
It’s no surprise that customer service has been on the decline for the past ten years in America. Company executives are quick to blame the economic downturn for the decline in service. But, frankly, that’s just a weak excuse for companies that are not willing to spend the money to train their employees in the art of customer service. But, there’s a deeper problem that is causing the decline in customer service among American companies. And, it’s a two-headed monster!
The first head on this menacing monster is a mindset among the bean counters within corporate America who fail to see the correlation between superior customer service and profit. For these mindless bureaucrats, who fatten the top line of most businesses and contribute little to the bottom line, customer service is a cost-center. From their narrow vantage point, teaching employees how to smile, be polite and answer customer questions doesn’t translate into more revenue. This mindset is problematic, but it can be cured by enlightened leaders who understand that customer service is a philosophy not a department!
Unfortunately, the second head on the monster is more challenging because it is rooted in our changing national culture which has drifted away from customer service because of greed, technology and the unwillingness of consumers to fight back for better service and fair treatment. How do we go about restoring customer service as a way of life in America?
Perhaps, the answer can be found across the Pacific Ocean. On a recent trip to Hong Kong, Macau and Tokyo I found customer service is alive and well. Certainly, these destinations have been hit with tough economic times; and yet, their commitment to superior customer service is unwavering. Why is that?
I think the answer is cultural. There is something inherent among Asian cultures that teaches people to be of service, to be kind and help each other. There is also a deep regard among Asians for respect and common courtesy. I remember an advertising campaign by Toyota in the early 1990s that emphasized uncommon courtesy. It was brilliant because it captured the essence of a traditional Japanese custom -- courtesy -- and Toyota’s commitment to superior customer service based on respect for people.
That sentiment is alive and well in Asia. At every stop, the overwhelming majority of people -- from hotel clerks and waiters to taxi drivers and flight attendants -- practiced the art of superior customer service. For them, it is a way of life to be of service. For Americans, it’s part of our job. Regrettably, too many Americans fail to practice the basic tenets of superior customer service (courtesy, respect, quality and going above-and-beyond the call of duty for our customers) in their everyday life. For most Americans, practicing superior customer service takes too much time and effort. We’d rather be ill-mannered and arrogant. We’d rather blame the customer for their stupidity than bow respectfully -- as do the Asians -- and humbly apologize in order to retain the customer’s loyalty. And, let me add, Asians do this regardless of how wrong the customer is. Why?
Well, I think the Asians understand the concept of “winning a customer for life!” Contrarily, in the United States, if the customer is wrong or acts like a jerk, we would rather tell him/her to go jump in a lake!
So, if you’d like to rediscover the beautiful art of customer service, I encourage you to visit to Hong Kong, Macau or Tokyo. In addition to their spectacular beauty and wonderful sites, you will find customer service is alive and well -- and, by the way, so is business!
About the Author:
Tom Hinton is president and CEO of the American Consumer Council, a non-profit consumer education organization with more than 93,000 members in 44 states. Mr. Hinton can be reached at: tom@americanconsumercouncil.org
It’s no surprise that customer service has been on the decline for the past ten years in America. Company executives are quick to blame the economic downturn for the decline in service. But, frankly, that’s just a weak excuse for companies that are not willing to spend the money to train their employees in the art of customer service. But, there’s a deeper problem that is causing the decline in customer service among American companies. And, it’s a two-headed monster!
The first head on this menacing monster is a mindset among the bean counters within corporate America who fail to see the correlation between superior customer service and profit. For these mindless bureaucrats, who fatten the top line of most businesses and contribute little to the bottom line, customer service is a cost-center. From their narrow vantage point, teaching employees how to smile, be polite and answer customer questions doesn’t translate into more revenue. This mindset is problematic, but it can be cured by enlightened leaders who understand that customer service is a philosophy not a department!
Unfortunately, the second head on the monster is more challenging because it is rooted in our changing national culture which has drifted away from customer service because of greed, technology and the unwillingness of consumers to fight back for better service and fair treatment. How do we go about restoring customer service as a way of life in America?
Perhaps, the answer can be found across the Pacific Ocean. On a recent trip to Hong Kong, Macau and Tokyo I found customer service is alive and well. Certainly, these destinations have been hit with tough economic times; and yet, their commitment to superior customer service is unwavering. Why is that?
I think the answer is cultural. There is something inherent among Asian cultures that teaches people to be of service, to be kind and help each other. There is also a deep regard among Asians for respect and common courtesy. I remember an advertising campaign by Toyota in the early 1990s that emphasized uncommon courtesy. It was brilliant because it captured the essence of a traditional Japanese custom -- courtesy -- and Toyota’s commitment to superior customer service based on respect for people.
That sentiment is alive and well in Asia. At every stop, the overwhelming majority of people -- from hotel clerks and waiters to taxi drivers and flight attendants -- practiced the art of superior customer service. For them, it is a way of life to be of service. For Americans, it’s part of our job. Regrettably, too many Americans fail to practice the basic tenets of superior customer service (courtesy, respect, quality and going above-and-beyond the call of duty for our customers) in their everyday life. For most Americans, practicing superior customer service takes too much time and effort. We’d rather be ill-mannered and arrogant. We’d rather blame the customer for their stupidity than bow respectfully -- as do the Asians -- and humbly apologize in order to retain the customer’s loyalty. And, let me add, Asians do this regardless of how wrong the customer is. Why?
Well, I think the Asians understand the concept of “winning a customer for life!” Contrarily, in the United States, if the customer is wrong or acts like a jerk, we would rather tell him/her to go jump in a lake!
So, if you’d like to rediscover the beautiful art of customer service, I encourage you to visit to Hong Kong, Macau or Tokyo. In addition to their spectacular beauty and wonderful sites, you will find customer service is alive and well -- and, by the way, so is business!
About the Author:
Tom Hinton is president and CEO of the American Consumer Council, a non-profit consumer education organization with more than 93,000 members in 44 states. Mr. Hinton can be reached at: tom@americanconsumercouncil.org
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