Apple Pay, CurrentC and Profits

Earlier today over on Pencil Note there was a post about Apple Pay and the author spoke to their opinion on how the CurrentC plan from retailers like CVS and Walmart would actually benefit consumers. Upon reading the post in my RSS reader, I quickly tweeted a question asking if he really though the retailers would pass the savings onto customers. Their response was

Yes. Less credit cards means lower prices.

Pencil Note

And then, in an old fashioned blogging style, they posted a more-than-140-character reply – Why fewer credit cards mean lower prices. While my formal education on economics is limited to 101 level micro & macro economics courses, I’ve been an informed consumer for long enough to follow the train of thought in that post. While it makes sense that the retailers are fueled by growth, and there is already a race to the bottom for pricing, the end result is still more profit for the owners/shareholders. If the price drops a few cents here or there, it is my opinion that is purely a by-product of profit growth and not the intention.

Bush Suspends Minimum Wage in Federal Contracts

Proclamation Apparently, there’s provisions that state the Labor Secretary sets a minumum wage to pay various levels of laborers and “mechanics”. Well, Bush has suspended this provision. It’s written into the provision that he can, and in some circumstances, I can understand why. But we are talking about Bush, and Cheney, and I can see how some corporate contractors seize an opportunity to not pay laborers a federally mandated min. rate, but still charge their “normal” fees. So prior to the Hurricane, a skilled worker in NO would have been paid a certain rate if working on a federal contract, now he will be paid less. Good thing those tax cuts went to those who needed it most…

Trickle Down Economics?

Census Economic Briefing RoomsHmm. Household income stagnat in real dollars, poverty up, uninsured Americans, up, homeownership down a percent, yeah, sounds about time to take a vacation. If my fellow Americans do not put this Administration and those that have supported it on a very long vacation starting next year, I’m gonna start pricing guns and land in Montana…anyone else in?