“Integrity means a willingness not to violate one’s identity.” - Erich Fromm
I do not pretend to understand the intricacies of economics (macro- or micro-). Nor do I think I am an expert in any high-flown financial matters. My budgeting sometimes probably leaves something to be desired, but at least, I do manage my personal finances more or less successfully so that I am comfortable, do not owe money to anyone and I am also able to put a little something aside, planning ahead for a rainy day in the future. So, you may say that unlike many other people I am managing to cope with matters financial…
But coping, only just! The vagaries of our economic system, capitalistic greed, our confounded politics, the insanity and unfairness of our taxation system, the escalating charges, costs and fees associated with a “user-pays” mentality are managing to erode financial coping mechanisms for many people. “User-pays” indeed! It would make sense in a system where personal taxation was more reasonable, but if you tax the average citizen highly and then expect him to pay for everything he uses as well, then the system becomes grossly unfair and is bound to fester discontent. And there is a lot of discontent around at the moment…
Speaking of fees, charges and escalating costs, the banks in Australia have gone completely crazy! This of course is in strict imitation of similar institutions in countries of the Western persuasion around the world. The charging of usurious interest rates, credit card rip-offs, the creation of ever-new fees and charges, “user-pays” costs and countless other ways of making money out of their increasingly poorer clientele is now a fact of life. The defence for their shameless profiteering is that their “shareholders must be kept satisfied”. And satisfied they are, as the banks’ profits escalate annually into the billions… One thing the banks forget, however, is that their ordinary customers far outnumber their shareholders. They cannot forever rob the numerous poor Peters to keep on making the few rich Pauls richer. This sort of thing led to several bloody revolutions in the past – France and Russia spring immediately to mind!
The soaring profits also keep the banking staff on the upper echelons of these august institutions in the lap of luxury as well. The lifestyle of the directors is truly imperial and commensurate with the salaries, which are truly obscene. The golden handshakes they receive upon termination of employment are offensive to the extreme, the bonuses that are habitually handed out to their ilk are an affront to the increasing poverty which is becoming widespread in the general population. The fee you paid yesterday and the new charge dreamed up today is keeping these people replete with champagne and caviar tomorrow, and tomorrow, and tomorrow…
The solution? Reform! Reform on multiple levels. How to achieve this reform is a matter of contention and will require a great deal of effort and in many cases action that will be revolutionary. Revolution will need to be in the form of a radical change in the way that we interact with the state, large organisations, industries and companies – not revolution of the bloody kind. We are bled figuratively through our pockets, so our revolution must be a figurative one also. Resistance will need to be passive, and organised on a scale that makes a large dent in the profits of these companies. If the Peters fail to deliver the profit to the Pauls, then the Pauls will need to reconsider their stance, attitude and modus operandi.
Community banks and building societies are a way that the general populace can use to escape the mainstream banking sector. Avoidance of the use of credit cards (which now almost universally attract a user pays 1%-3% charge on top of the stated retail price) is another way. Opening accounts that are negotiated to be fee-free can be another mechanism and shopping around to get the best banking deal may also help.Unless the general population of bank customers reacts in a unified and universal way, witha a huge amount of publicity, isolated reactions by single users will not have an effect. Hence the difficulty of effecting change...
And now to the title of this blog post: Usury. An old fashioned word that one does not see written much nowadays. However, it is widespread in practice...
usury |ˈjuːʒ(ə)ri| noun [mass noun]
The action or practice of lending money at unreasonably high rates of interest. the medieval prohibition on usury.
ORIGIN: Middle English: From Anglo-Norman French usurie, or from medieval Latin usuria, from Latin usura, from usus ‘a use’.
I do not pretend to understand the intricacies of economics (macro- or micro-). Nor do I think I am an expert in any high-flown financial matters. My budgeting sometimes probably leaves something to be desired, but at least, I do manage my personal finances more or less successfully so that I am comfortable, do not owe money to anyone and I am also able to put a little something aside, planning ahead for a rainy day in the future. So, you may say that unlike many other people I am managing to cope with matters financial…
But coping, only just! The vagaries of our economic system, capitalistic greed, our confounded politics, the insanity and unfairness of our taxation system, the escalating charges, costs and fees associated with a “user-pays” mentality are managing to erode financial coping mechanisms for many people. “User-pays” indeed! It would make sense in a system where personal taxation was more reasonable, but if you tax the average citizen highly and then expect him to pay for everything he uses as well, then the system becomes grossly unfair and is bound to fester discontent. And there is a lot of discontent around at the moment…
Speaking of fees, charges and escalating costs, the banks in Australia have gone completely crazy! This of course is in strict imitation of similar institutions in countries of the Western persuasion around the world. The charging of usurious interest rates, credit card rip-offs, the creation of ever-new fees and charges, “user-pays” costs and countless other ways of making money out of their increasingly poorer clientele is now a fact of life. The defence for their shameless profiteering is that their “shareholders must be kept satisfied”. And satisfied they are, as the banks’ profits escalate annually into the billions… One thing the banks forget, however, is that their ordinary customers far outnumber their shareholders. They cannot forever rob the numerous poor Peters to keep on making the few rich Pauls richer. This sort of thing led to several bloody revolutions in the past – France and Russia spring immediately to mind!
The soaring profits also keep the banking staff on the upper echelons of these august institutions in the lap of luxury as well. The lifestyle of the directors is truly imperial and commensurate with the salaries, which are truly obscene. The golden handshakes they receive upon termination of employment are offensive to the extreme, the bonuses that are habitually handed out to their ilk are an affront to the increasing poverty which is becoming widespread in the general population. The fee you paid yesterday and the new charge dreamed up today is keeping these people replete with champagne and caviar tomorrow, and tomorrow, and tomorrow…
The solution? Reform! Reform on multiple levels. How to achieve this reform is a matter of contention and will require a great deal of effort and in many cases action that will be revolutionary. Revolution will need to be in the form of a radical change in the way that we interact with the state, large organisations, industries and companies – not revolution of the bloody kind. We are bled figuratively through our pockets, so our revolution must be a figurative one also. Resistance will need to be passive, and organised on a scale that makes a large dent in the profits of these companies. If the Peters fail to deliver the profit to the Pauls, then the Pauls will need to reconsider their stance, attitude and modus operandi.
Community banks and building societies are a way that the general populace can use to escape the mainstream banking sector. Avoidance of the use of credit cards (which now almost universally attract a user pays 1%-3% charge on top of the stated retail price) is another way. Opening accounts that are negotiated to be fee-free can be another mechanism and shopping around to get the best banking deal may also help.Unless the general population of bank customers reacts in a unified and universal way, witha a huge amount of publicity, isolated reactions by single users will not have an effect. Hence the difficulty of effecting change...
And now to the title of this blog post: Usury. An old fashioned word that one does not see written much nowadays. However, it is widespread in practice...
usury |ˈjuːʒ(ə)ri| noun [mass noun]
The action or practice of lending money at unreasonably high rates of interest. the medieval prohibition on usury.
ORIGIN: Middle English: From Anglo-Norman French usurie, or from medieval Latin usuria, from Latin usura, from usus ‘a use’.
Hallelujah! How right you are, Nicholas. I'd like to bring back the use of that old word and make it sting with all of its negative and shameful past associations to describe what are now widespread and unfortunately widely accepted banking practices!
ReplyDelete