Ok…admittedly, this is not by any means a photography related topic, but when I heard the news this morning:
my stomach dropped.
I knew immediately that this could be a HUGE mistake at this point in time.
If anyone, myself included, has felt the negative repercussions of the Credit Card reform act being passed a couple of years ago…then you already know what is about to be said, and probably dont need to read any further.
Literally…4 years ago, we were able to buy a house with a signature…paid all our bills and credit cards on time, and were able to produce large photo jobs on our stellar revolving credit…even though most clients took just as long to pay then, as they do now.
Then, one day around February 2009…BAM!
Out of the blue (or so it seemed)…
…all of our credit card rates went sky high…and all of our credit limits were reduced to whatever we owed on the cards or lines of credit. Through no fault of ours, we were always on-time, and paid well above the minimum balance.
This trend continued over a couple of months, until all the card companies collectively and effectively RAISED our DEBT-TO-CREDIT ratio from +/- 30% to over 85%!!!
Our income hadn’t changed….our spending hadn’t changed…but now we can’t even get a friggin’ Target card.
The EFFECT is that now…all the jobs we produce have to be paid in cash or on a 30 day net with our vendors.
Unfortunately, many of the larger companies (namely the ones that make these nifty laptops we type on) have made it their POLICY to wait at least 45 days to PAY…no, really, it’s in the contracts…it ridiculous, and probably illegal (or should be)…but they do it anyway.
(You’d think a company that makes over $6 Billion a year in profits, could afford to pay their measly vendors within 30 days…but, no.)
Now, there is much less revolving credit available to us, and with all the cash ALREADY SPENT to make the jobs happen…there is is not enough cash left to pay back the vendors and credit cards in due time, therefore incurring late fees and subsequent damage to what was once a spotless, nearly 800 FICO score.
The “Trickle Down Effect” of all this really sucks. Period.
WHICH LEADS ME TO BELIEVE THE FOLLOWING….
If The TAX BREAKS for the OIL COMPANIES are CUT…
They will turn right around and RAISE THE COST OF OIL to compensate their loss. Just like the credit card companies did.
The Oil Companies don’t give a shit about Us “the consumers”…as long as we are buying their product, they will continue to do whatever they can to make more money…regardless of the overall outcome and “Trickle Down Effect”.
They probably care more about the environment than they do about us…which isn’t saying much to begin with.
When the price of Oil goes up…the cost of EVERYTHING goes up.
But why should the Oil Company Execs care? I mean, they can afford to pay more for Groceries, pay more for Travel, Pay more for Durable Goods and Imported products…right?
After all, they have all of OUR money to pay for it with…why should they care?
To steal this line from Obama, “Make No Mistake”…I give as much of a shit about the Oil Companies as they give about me…but I am deadly aware of the crucial role they play in the Global, and Local, Economy.
I already do my LEAST to support the Oil Companies, in whatever way I can afford to….recycling, walking, riding my scooter or bike, looking into going solar (when those MEGAclients finally pay on time so I can have some $$ to do it with), buying food from local farms…whatever.
So I’m no supporter, by any means, of giving the Oil Companies ANY MONEY at all…
HOWEVER…Until we are able to support our overall energy consumption with some more readily available and affordable methods (Natural Gas, Solar, Wind, Hydrogen…all the things we are working towards currently, but are not yet as readily available as GASOLINE)…we will be SCREWED on the whole, if the price of oil were to increase above it’s already rising and currently astronomical price.
Didn’t anyone NOTICE that when the price of gas started going up a while back…the price of almost everything else crept upward as well?
People started spending less, employers started laying people off, stock prices fell…and our overall economy took a dump…as did many other countries.
So…PLEASE…leave the Oil companies ALONE…literally.
Don’t kick the hornet’s nest…don’t raise their taxes…and, in the same note, DON’T BUY THEIR PRODUCTS either.
Yes it’s time to gently cut the Oil Umbilical Cord…but we better have some fresh milk waiting.