Consumer Payment Card News

Pain on Main Street Coming to Your Wallet Effective November 20th, 2017

Family budgets are about to get blown out of the water, feeling the “Pain of Main Street” as healthcare costs will inevitably explode in 2017 and beyond, legal financial rip-offs will rear its ugly head again and persist for several years, minimum wages are likely to go nowhere anytime soon, and shopping at Walmart may cause sticker shock. 

A new study shows canceling the ACA’s tax credits and Medicaid expansion under Obamacare by radical Republicans would double the number of uninsured Americans to more than 60 million. As millions lose their insurance, hospitals and other providers would see their uncompensated medical care costs soar by $1.1 trillion from 2019 to 2028, and they would experience major revenue losses as well.

But repeal could also have much broader economic repercussions. Repeal of ACA tax credits and Medicaid expansion could lead to loss of 2.6 million jobs in 2019. Jobs will be lost in health care, construction, and other sectors of the economy. Furthermore, economic activity, such as state gross product (the state equivalent of national gross domestic product) and business output will sink, and state and local tax revenues will have to swallow the drop-off. MORE

The Consumer Financial Protection Bureau is on the radar of radical Republicans to be promptly dismantled with calls to quickly fire its director. MORE

Since 2011, the Consumer Bureau has served as a wildly successful and accountable watchdog over unfair and greedy practices by companies offering financial products like mortgages, student loans, and credit cards.

The CFPB has returned nearly $12 billion to over 27 million consumers from many other companies that have broken the law. The CFPB was in the news a few months ago for its record $100 million penalty and consumer restitution against Wells Fargo for millions of fraudulent consumer accounts.

Additionally, the CFPB’s website hosts a complaint database that has processed over 1 million complaints, and it provides educational resources to make important financial decisions. MORE

The new choice to be labor secretary, Andy Puzder, is the CEO of the company that owns the Hardees and Carl’s Jr. fast food chains. He is a well-known stanch, face veins popping, opponent to higher minimum wages. MORE

The incoming president has been all over the map on the minimum wage issue, proclaiming in his working class rallies he is for a $15 per hour minimum while at the same time saying to business groups he thinks minimum wages are too high. More recently, he says it should be a state issue not a federal issue. MORE

Moreover, radical Republicans are vehemently opposed to any increase in minimum wages.

Regardless, the future looks bleak for anyone stuck at a minimum wage of less than $10 per hour.

Screwing with trade laws and imposing tariffs by radical Republicans may produce jobs on paper forecasts but will undoubtedly drive consumer prices higher, especially Walmart prices, a direct hit on paycheck-to-paycheck Americans. MORE

There are even more issues producing uncertainty and anxiety among working stiffs, including paid sick and family leave, to mention another. However, don’t mention it to the radical Republicans.

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