Retailers want to shift their costs onto consumers
Re: “Consumers face jacked up credit card rates,” Nov. 27
It’s a real pity that
The Examiner’s Nov. 27 lead story – billed with the screaming front-page headline “Credit cards show no pity” – misstates the findings of a new government study and sides with self-interested retailers who wish to shift their credit card processing costs to consumers. The article asserts that “a report from the Government Accountability Office, Congress’ investigative arm, said consumers were paying higher prices as merchants passed on interchange fees to their customers.” But the GAO report actually says that it is “difficult to measure” how much, if any, of the fees retailers pay to credit card companies were passed on to consumers. Further, the GAO concludes that if Congress restricts interchange fees, “consumers may face higher costs for using their cards,” and they “may not experience lower prices” from retailers. The GAO noted that when Australia capped interchange fees, card holders faced higher fees and fewer rewards to make up the lost card revenue from merchants. There was no evidence that merchants passed on any of their $1.1 billion in savings to consumers. Retailers engaging in this misleading campaign against interchange fees apparently have “no pity” for American consumers who would also get soaked from similar price controls from Congress.
John Berlau
Director, Center for Investors and Entrepreneurs
Competitive Enterprise Institute
Washington
Better ways to keep build roads, keep costs down
When the Virginia General Assembly session begins Jan. 13, I plan to reintroduce measures that will challenge the national socialized medicine now being considered in Congress. One bill provides for the establishment of a medical compensation fund that is based on Virginia’s Injured Baby Fund and/or our Workman’s Compensation awards. Jackpot juries are costing all of us considerable money and are driving up medical costs as many doctors practice defensive medicine to avoid lawsuits. I will also work to end taxpayer funding of abortion. I also have a bill to fund major road and rail projects around the state through toll-based bonds instead of tax increases. This type of bond does not constitute debt that is measured against our normal borrowing capacity. I will also reintroduce my “Transportation Lock Box” amendment so that funds raised for roads cannot be raided for other uses. When I was visiting polls on Election Day, a state trooper told me that Virginia pays $150 a month to lease one computer. With examples like this, I have no doubt the state will be able to find ways to save money.
Del. Bob Marshall
13th Legislative District
Virginia General Assembly
Unlimited health care is a liberal fantasy
Re: “Time to wind down the war on drugs,” & “More death panels are on Obama health care agenda,” Dec. 1
Gene Healy argues (sensibly, to my taste) for deregulation of marijuana. On the next page, Marta Mossberg asserts that health care be provided without limit – by the government or some other guardian angel who would not impose costs on the receiver. Hers is, in my view, a long way from a conservative position.
Joseph Michael Finger
Arlington
