Narrow Profit Margins: Labour Force

Enormous Debt Dept: Prior to 1950, it was common practice to save in order to one day achieve a goal be it a dream vacation, or more likely a decent suit of clothes. Merchants carried their own in-store credit system. I recall my father paying $2 every pay day to a local clothing merchant so that he could receive a pair of pants once the full $14 was paid. The emphasis was on getting the money first and then receiving the reward, according to The Star. All large retailers offer their own credit cards and give enticing bonuses for their use even when used to purchase goods and services not offered by the issuing merchant. They don t want your business as much as they want your debt. The real problem is that this enormous debt supports a huge labour force and eliminating it eliminates jobs. It s a hole we ve dug and continue to dig but we ve run out of places to throw the dirt and thanks to Rosie DiManno for the excellent articles on the Greek crisis. The current financial problem facing Greece, and poised to spread to the rest of the world, had its genesis in the advent and proliferation of the credit card. We are now into the third generation of consumers convinced that they should have today what they are sure that some day they will be able to afford. Today, the reward comes first and getting the money is something that you intend to do some day. Since most retail businesses work on rather narrow profit margins, they would much sooner have the customer owe them money at or above 20 per cent interest. At these rates the return is much greater than it would be if the customer paid cash even after considering any defaults. (www.immigrantscanada.com). As reported in the news.