Post by katower35 on Nov 16, 2011 19:29:28 GMT -5
Kate Towers
The powerful presence of crisis often changes society and in turn alters the way in which people view the world around them. These ideological shifts create crises themselves, thus creating a cycle that has been occurring since the beginning of Puritan America. Even today, the Dodd-Frank Durbin Amendment and bank proposed $5 debit card fees, stemming from the economic crisis, are evidence that the cycle of ideological shifts resulting from pressing dilemmas continues on.
The Dodd-Frank Durbin Amendment, passed in an attempt to improve the current economic recession, represents one ideological shift of the government towards becoming more heavily involved in the American economy. On October 1, 2011, the amendment went into effect. It essentially limits the fees banks can levy on merchants to 21 cents per transaction, when the customer pays using their debit card. Prior to this ruling, the fee was capped at 44 cents. Law makers hoped that this amendment would help to protect business by reducing excessive bank fees. These fees would ultimately be passed on to the customers, and would in turn discourage them from using their debit cards as frequently. Furthermore, in response to the Dodd-Frank Durbin amendment, and as an additional result of the economic crisis, large banks, such as Bank of America, shifted their ideologies and planned to charge consumers a $5 fee to use their debit cards. Because of the shift in government ideology, the Dodd-Frank Durbin Amendment, banks are predicted to lose $6.6 billion annually, forcing Bank of America, along with a few other banks, to propose this new debit card fee in order to gain back lost revenue. This fee shows a change in the ideology of the banks, who rarely have proposed a direct tax on debit card holders previously. Both the Dodd-Frank Durbin Amendment and debit card fee are a clear shift in beliefs and policies, all resulting from the economy which has been weakening since 2008.
Additionally, ideological shifts often in turn result in new crises, and the debit card fees proposed by banks are no exception; customers petitioned for a repeal of this plan, causing chaos in the banking industry. Once word of the plan reached Americans, social media was ablaze with comments and protests regarding the fee. One campaign on change.org had over 300,000 signers who opposed the actions of the banks. These protesters threatened to close their accounts, and take their business elsewhere. After such an unexpected uproar, all the banks dropped the $5 fee, with Bank of America being the last to abandon the plan on November 1. The threat of losing business from over 300,000 angry bank customers persuaded the banks to withdraw their plans, in order to prevent the crisis from further escalating.
Overall, ideological shifts resulting from crises and in turn fueling new crises are still present in society and have been influencing Americans since the age of the Puritans. Even our Puritan ancestors had to deal with ideological shifts stemming from religion’s loss of control on its followers. Both the crisis of 1600’s Puritan America and the economic crisis of today had a large impact on almost all Americans living through these situations, therefore changing the ideology of the people. Both the Dodd-Frank Durbin Amendment and proposed debit card fees have impacted the philosophies and the wallet of Americans, and as seen in history, fueled yet another crisis.
Word Count: 560
www.nytimes.com/2011/11/02/business/bank-of-america-drops-plan-for-debit-card-fee.html?_r=1
abcnews.go.com/Business/bank-america-drops-plan-debit-card-fee/story?id=14857970
The powerful presence of crisis often changes society and in turn alters the way in which people view the world around them. These ideological shifts create crises themselves, thus creating a cycle that has been occurring since the beginning of Puritan America. Even today, the Dodd-Frank Durbin Amendment and bank proposed $5 debit card fees, stemming from the economic crisis, are evidence that the cycle of ideological shifts resulting from pressing dilemmas continues on.
The Dodd-Frank Durbin Amendment, passed in an attempt to improve the current economic recession, represents one ideological shift of the government towards becoming more heavily involved in the American economy. On October 1, 2011, the amendment went into effect. It essentially limits the fees banks can levy on merchants to 21 cents per transaction, when the customer pays using their debit card. Prior to this ruling, the fee was capped at 44 cents. Law makers hoped that this amendment would help to protect business by reducing excessive bank fees. These fees would ultimately be passed on to the customers, and would in turn discourage them from using their debit cards as frequently. Furthermore, in response to the Dodd-Frank Durbin amendment, and as an additional result of the economic crisis, large banks, such as Bank of America, shifted their ideologies and planned to charge consumers a $5 fee to use their debit cards. Because of the shift in government ideology, the Dodd-Frank Durbin Amendment, banks are predicted to lose $6.6 billion annually, forcing Bank of America, along with a few other banks, to propose this new debit card fee in order to gain back lost revenue. This fee shows a change in the ideology of the banks, who rarely have proposed a direct tax on debit card holders previously. Both the Dodd-Frank Durbin Amendment and debit card fee are a clear shift in beliefs and policies, all resulting from the economy which has been weakening since 2008.
Additionally, ideological shifts often in turn result in new crises, and the debit card fees proposed by banks are no exception; customers petitioned for a repeal of this plan, causing chaos in the banking industry. Once word of the plan reached Americans, social media was ablaze with comments and protests regarding the fee. One campaign on change.org had over 300,000 signers who opposed the actions of the banks. These protesters threatened to close their accounts, and take their business elsewhere. After such an unexpected uproar, all the banks dropped the $5 fee, with Bank of America being the last to abandon the plan on November 1. The threat of losing business from over 300,000 angry bank customers persuaded the banks to withdraw their plans, in order to prevent the crisis from further escalating.
Overall, ideological shifts resulting from crises and in turn fueling new crises are still present in society and have been influencing Americans since the age of the Puritans. Even our Puritan ancestors had to deal with ideological shifts stemming from religion’s loss of control on its followers. Both the crisis of 1600’s Puritan America and the economic crisis of today had a large impact on almost all Americans living through these situations, therefore changing the ideology of the people. Both the Dodd-Frank Durbin Amendment and proposed debit card fees have impacted the philosophies and the wallet of Americans, and as seen in history, fueled yet another crisis.
Word Count: 560
www.nytimes.com/2011/11/02/business/bank-of-america-drops-plan-for-debit-card-fee.html?_r=1
abcnews.go.com/Business/bank-america-drops-plan-debit-card-fee/story?id=14857970