The Consequence of Regulation

Businesses pass costs onto the consumer, always.  We adore the cute calls by pundits to “regulate the banks” and “tax corporations” without an understanding of where an increase in cost actually lands.

Today, the most bankrupt of all banks, Bank of America, is set to charge debit card users $5 a month for the privilege of accessing one’s own nominal currency units.

For reference, here’s some populist bru-ha-ha on how we need to regulate those evil banks. 

We were too lazy to look it up, but Business Insider already has since we started typing this.  The Durbin amendment specifically caps debit card interchange fees.  We remember from being unborn in the 1970’s when the price of gas was capped and there were shortages. Hmmmm.

The econoLOL here is the inability for Durbin or anyone else to separate price from cost in the financial industry.  They are not the same, ever, and we can’t wait for this to be applied to the healthcare debate.  We’re not holding our breath for anyone in Washingtonvillelandistan to understand this.


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