Why do banks raise useage fees during a recession? Why did MARTA just raise a monthly fare card from $60 to $95 and stop all service to Clayton County? Why did Starbucks raise the price of my latte but fail to increase the size of the cup? Hmm... I'm starting to think that there is no recession, we are just feeling the immediate impact of corporate inflation. If large companies want to increase revenues, they may want to endorse the old adage of "drawing more flies with honey". By saying that, I am stating that it would be better to maintain your customer base by offering incentives for loyal customers and perks for new ones. Increasing fees in a dwindling economy only hurts middle and lower class Americans whose incomes are already exhausted.
The panic created by the ripple effect of larger companies increasing fees and reporting losses causes a downward spiral in spending trends. Now, if it costs more for me to access and account for my own money, I will begin to hold on tighter to my income. The overall effect is less spending, less customer loyalty, and a greater recession.
Sad, but we seem to be creating a larger instability by allowing privately held companies that make millions of dollars a day in profit to dictate how we buy and spend. Then, because we refuse t fix the laws which govern and we feel that we have no one else to blame, we point the finger at others and say the recession is their "fault" when (in actuality) it begins and ends in boardrooms across America, not the White House.
This is just ONE Man's Opinion... What is yours?
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