As I started cooking ramen after getting out of bed (shit, what do I call this? Night? Morning?) at fuck o'clock in the... time sphere- I read the FOURTH justification for corporate douchebaggery that I've seen the past 24 hours. From a normal person- not like a CEO or anything.
This goddamn baffles me, so I'm here to talk to you about why that is totally unacceptable.
This all arose from two separate, but equally interesting discussions in corporate America that have been gaining traction recently-
1. Wal-Mart workers, if you were unaware, went on a walk-out for the first time in, well, ever a little over a month ago- protesting substandard working conditions, low wages, no benefits, and, to re-use my terminology, all around corporate douchebaggery. The interesting thing, however, is that after the relatively unsuccessful walk-out, Wal-Mart employees realized that they were all in the same boat (imagine that), and they found power in numbers.
As such, they've decided to strike Wal-Mart during Black Friday, possibly the busiest day of the year for any retailer. Their demands are few and simple, listed here: http://occupyamerica.crooksandliars.com/diane-sweet/support-walmart-black-friday-strikers
The first and most important item- a minimum salary of 25,000/year and health insurance for all workers.
I should note that the current poverty line in the US is $22,133 for a family of four.
Current Wal-Mart "salary" for a typical employee making just over minimum wage at 40 hours/week comes out to $18,000/year assuming each week is exactly 40 hours without overtime.
To give you an idea of what this would cost Wal-Mart, it employed 1.4 million Americans in 2010, making profits of $15 billion per year.
A strict $7,000 raise for all employees would cost roughly 9-10 billion dollars per year, leaving 5 billion in profits. Two additional notes- A. I'm doing really shoddy math and making lots of assumptions (like including all corporate employees of Wal-Mart who probably already make over $25,000), and B. I'm not accounting for the costs of health care for all of its employees.
Regardless, five billion in profits is still more than most corporations will see in any given year, and more than most businesses in general will see in their lifetimes.
2. Occupy Wall Street (OWS) recently announced a comeback plan to help reduce outstanding medical debt in the country called "The Rolling Jubilee." Without getting into the nitty gritty, the effective idea is that members of OWS donate money to buy derelict debt from banks for pennies on the dollar in the way that collection agencies currently do. (If you have 10,000 in debt that is expected to remain unpaid, the bank may label it as a loss and sell it for $200 to a collection agency who is hoping to turn a profit by buying the debt, since the bank doesn't have the resources to hound you all day for the full cost)
OWS then abolish the debt instead of trying to collect it from you.
[It sounds wonderful on the offset- but the problem is that the debt OWS is purchasing is debt assumed to be uncollectable in the first place. Debt that few resources will go to collecting.
We're not necessarily talking about a person living paycheck to paycheck, just barely living under debt. No, we're talking about people who are so deep in debt that they may be homeless, dead, or simply not trying anymore. However, this isn't what I came to talk about, so I apologize for getting off topic]
In both of these stories, a single idea arises that joins the two together-
Contracts.
In the case of Wal-Mart, your standard employee signs a contract agreeing to the terms of their employment, including wages, benefits, conditions, liabilities, etc.
In the case of the OWS movement, the debt being purchased is debt from loans or credit cards that were received in the signing of a very similar contract.
However, in both, the noteworthy idea is that the people signing these contracts are signing away their right to complain or demand a better bargain. This is where the apologists come in.
The argument I've heard several times now is simply in defending the nature of the contract regardless of the context in which the contract is used.
"But regardless of their reason they lose. Because they will be fired. And they won't get sympathy because its the wrong thing to do to their employer. It's an unprofessional way to try and get a raise. And they won't get unemployment for disregarding the policy they received in writing in my handbook that says they need to be there.
Don't like your pay? Don't agree to it; look elsewhere."
"Ignorance is no excuse and banks are not educational institutions. Loans, variable, fixed, actual interest rates are very easy concepts. It's not lying if YOU chose a variable rate loan and never bothered to investigate what would happen if interest rates went up. Like it or not our society is a credit based one and people better educate themselves very quickly. "
"You cannot possibly be asking that others (All of us) be punished for the lack of foresight and due diligence on someone else's part? Nobody made these people go get a mortgage they couldn't afford, THEY did that. I can expect people to educate themselves when they are getting 100k mortgages. No court or arbitrator in the county is going to dissolve a contract based upon one parties lack of understanding of what the terms and conditions mean. It's a contract and you better make sure you understand what you are signing or get some help! Ignorance of the law is not a defense."
"Everyone everywhere understands that loans carry interest. The details are almost irrelevant. Everyone everywhere also knows not to just sign a contract without understanding it. If some grown adult chooses to do so i have absolutely no sympathy for them when they suffer the potential consequences. Does anyone have ant shred of personal responsibility anymore?"
These are all direct quotes that effectively sum up the same argument: Ignorance of the system is not an excuse- or to put it in a way that we've all heard before- "Ignorance of the law is not an excuse for breaking it."
And that's all well and good- that quote, taken by itself, makes a sort of cold, logical sense. If ignorance of the law was an excuse, then people would be able to get away with some pretty heinous stuff under the rationale that they didn't know it was against the law. But on the opposite end, can we really be expected to know everything about the law? Even lawyers don't know everything about every law, and that's their job. Have you ever gone online and looked at one of those lists of funny laws that are still "technically" in effect? What would happen if a cop pulled you over for breaking one of those archaic laws? You would feel cheated if the law didn't make sense, wouldn't you?
The situations are different to be sure, but think of it this way-
In our culture, the internet has given us some important gifts, but in an attempt to avoid legal hot water wherever an enterprise goes, we've become inundated with contracts. Tell me- how many times have you scrolled to the bottom and hit "I Agree" without actually reading the End User License Agreement (EULA) or Terms of Service (ToS)? More than you can count, I bet. I know I don't read them in 90% of circumstances. Is that smart? Hell no, you should read every contract you sign up for. Some of them are downright scary. Facebook? When you click "I agree," you sign away all ownership to any picture hosted on Facebook. It becomes their property to do with as they see fit. That's terrifying-- but-- we acquiesce for convenience and because there's little alternative. Do you want to network with your acquaintances and friends? Well, you have to sign away something, no matter how much you dislike it.
This proliferation of contracts has us so overloaded with terms and liabilities and licenses, that they all blend together and are meaningless. The cruel logic of it is that each contract is, itself, something you should and could relatively easily comb through. But, combined with the eight other contracts you sign a day, it's a bit taxing. Especially if some of them simply repeat what others say. You don't want to double check each and every contract to make sure you're not selling away your soul. And why should you have to? Your time is just as valuable as anyone else's. So, you do what anyone would do- the only thing we can do. You trust that the contractor isn't being deceitful or underhanded in any way, and you trust that the terms of agreement make sense and have logical consequences.
This is where average citizens get into hot water- trust. Trust is a quality that we admire and honor in the human race. And yet, we abuse the hell out of it.
You walk into a bank to sign up for a credit card. You don't like it, but you need to build a credit rating so that you can someday take out a loan for a car or a house or even a business. It's the smart thing to do. But, no one in school taught you a damn thing about credit cards. You only vaguely know what 1.3% APR means. You're fairly intelligent. You reason that 1.3% is the interest rate, but you're not positive, because you have no clue what "APR" stands for, and no one's about to tell you. You'd look it up, but you notice that there are four or five other initialisms that you're unfamiliar with, along with a slew of financial terminology that, in context, makes your head swim. You're smart, but this is something people take multiple classes on at the college level. You have a 40 hour/week job and a kid. You don't have time to sit and study the nuances of credit card finances- you just want to get the credit card, since you understand the most basic principle- pay with the card each day, pay off the card each month. That's easy.
But, the banker who just sat you down sees it another way. You're prey. You're the $100 bonus for him if he can sell you the high-interest credit card with a large spending limit. Your situation? Meaningless to many of these salesmen. True, some are there to help you, but many are not and have no interest in whether or not you'd be a wise choice for that high-responsibility credit card.
So, this man, trained in the art of making you feel flattered and insecure at the same time, goes into a sales pitch that he's spent countless hours perfecting. Telling you all the reasons why the bigger card would be better for you, even if you don't want it- neglecting to mention the ways it could be worse for you. He's throwing financial buzz words at you that, to him, actually make some sense because it's his field. But to you, the words could be in any order and they would make a comparable amount of sense regardless- It's all mumbo jumbo to you, and you just wanted the simple, easy, small credit card. However, you've grown insecure. This salesman is good and has pointed out several compelling reasons why you might need that massive spending limit and why it might be good for your credit. He's even talked about all the bonuses and rewards you get for signing up. It seems like a pretty sweet deal, actually.
Finally, you acquiesce, because what else could you do?
If you've been to college, I'd like to give you a comparable situation.
You walk into a classroom halfway through the semester- doesn't matter which one except for one critical detail- it's not in your area of expertise and it's in the building you've stayed away from up to that point. You sit down amongst a gaggle of students who look and sound like they have the subject completely figured out, but when the professor speaks, it's total nonsense to you. As it should be, you've never had a class in it, and someone dropped you into the middle of it without any preparation. You turn to ask your neighbors what's going on, and they happily explain. The problem is that their explanation relies on the terminology and concepts you haven't learned and don't really understand- so the explanation flies over your head. You apologize for sounding stupid, but you ask what one of those terms means, and the student rolls their eyes and gives you a ten minute explanation of that single term, bringing in new terms that you don't understand. You can see where this is going. There's no way that you'll be able to learn enough to discuss it effectively without spending weeks and months studying and attending lectures, reading notes and books. It's an ordeal. So you nod absently and copy what the professor says word for word, even though it's completely meaningless to you. And at the end of the period, you've learned nothing except just how woefully ignorant you are of the topic.
That is what it's like to sign up for a credit card when you don't know what you're doing or what they're talking about. It's frustrating, confusing, and you just want to leave as quickly as possible, even if it means not reading the contract, because chances are, you're not going to know what the contract is saying anyway beyond some vague understanding of some of the individual terms.
So, we trust that the banker means us no harm and is genuine when he tells us that the bigger card is the cheaper and smarter way to go.
Do the same for mortgages, and now you see why there were so many foreclosures in the past few years- why the housing bubble burst. Most people are of average intellect, and many people are of even less IQ than average. A smart person may be able to see through each sales pitch, but ultimately, their knowledge of credit and mortgages is piecemeal at best. So why do we expect everyone to know all the terms of each contract they signed inside and out? And more to the point, why are these contracts fair when we are coerced into accepting them?!
Yeah, you can not sign up for a credit card, but the consequences of that are that you may never own a house or be approved for a lease. Without a credit rating, what can be determined about your level of responsibility? There are ways around this, to be fair, but not all contracts can be so easily avoided. Wal-Mart is a terrific example. Are you old? Disabled? Unskilled? High school drop out? Looking to help pay for college? Or are you just down on your luck and forced to seek employment in desperate places? Wal-Mart is waiting with open arms.
Comparatively, most other places in town are relatively strict about hiring, and maybe you didn't make the cut for one reason or another, but Wal-Mart's high turnover rate and enormous size make it ideal for hiring constantly, so sometimes, they're the only option you have. In such a case, your options are:
A. Don't have a job
B. Sign a contract with Wal-Mart, regardless of how you feel about that contract
That's coercion if ever I've seen it, and it's how employers were able to force workers to work 12+ hours a day for virtually no compensation at any age, with the looming threat of machinery cutting off your limbs every day.
That's why unions had to come into being. That's why strikes were necessary.
In corporate America, there is no "I think I've made enough profit today, time to be generous." There's always room for more profit, so most corporations will do whatever the bare minimum is for its employees, and often times, its consumers as well. Corporations have given us no reason to trust that they have our best interest in mind, and yet we're forced to do just that, because the alternative is almost always worse.
So that. That is why I cannot fathom why corporate apologists exist in the average people. It baffles and concerns me. Each person in this country (aside from the upper class) is one unfortunate accident away from being in an extremely compromising situation. The fact that we lack empathy for the people already in those situations is astounding and shameful.
You guys are blaming the victim for something that is ultimately, a problem on both ends.
Yes, everyone should read and understand the contracts they sign. However, to do this, we need good education and simple-to-read contracts. Furthermore, we need to trust that the contracts are made in good faith by people who are looking out for our interests and not just the bottom line.
Overloading each person with a million contracts and expecting them to adhere flawlessly to each one without guidance? Cruel and unusual.
I'm glad you're smart enough to know a sizeable amount about credit, interest, and mortgages. But for the rest of America, we should be able to trust that the food we're being served isn't somehow simply poison in a pretty package. Not everyone can see through the packaging.
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Waddles