Paradigm Shifted

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Archive for the 'corporate america' Category


business models that i love

Posted by deepali on July 16, 2008

I have been thinking lately about the products I use and what value I see in them. It occurred to me that there are a few that I picked up on a whim, and have now become indispensable. In my mind, this is an important component of a successful product - being able to integrate into someone’s life without effort.

So here are the products that lately been of value:

1. Pandora Radio. A lot of my friends have been using this for a while, and I’ve only just jumped on the bandwagon. Recently, I realized that one of the first things I do when I arrive in the office is go to Pandora’s website and start my musical adventure. I didn’t even notice when that happened, but it is generally the second or third tab in my browser (after my timesheet and gmail). For those who aren’t familiar with Pandora - it’s internet radio that helps you identify new (and old) artists that are similar to ones that you pre-select as favorites. Right now, I’m listening to “Alice Russell radio”.

2. Whole Foods. Call me a sucker, but I love good customer service.  I like to walk into a place and have the people working smile and be friendly.  I am even more pleased when I ask a question and they can actually answer it.  And I love one-stop shopping.  I can go to Whole Foods for groceries, lunch, conveniences, birthday cards, a quick drink, etc.  They are also, for the most part, in line with my values.  With a few exceptions, I don’t worry about the products they offer.  I know they were produced in an ethical and sustainable way.  Plus the vegan raw garlicky kale is my favorite food right now.

3. Facebook. This is another one that took me a while to get into.  But when I finally did, I realized that it’s also a great one-stop shop.  I can stay in touch with friends, I can see what people are up to, I can plan parties and events, I can keep track of birthdays.   Right now, I’m excited about the DC Acro Yogis and their awesome flying pictures!

4. Backcountry.com. I’m not into buying a lot of things right now, but Backcountry has pretty much everything I need for outdoors activities.  In addition, they run Steep and Cheap, a great place for deals. It also helps that I get a discount.  But I really love their customer service (I’m sensing a theme).

Next up, the companies that drive me nuts!

Posted in corporate america | 1 Comment »

a case of conflicting principles

Posted by deepali on May 21, 2008

I recently wrote a guest post on Mrs. Micah, discussing the situation in Burma and ways in which we can help. One of the major dilemmas we face in this disaster is the need to prevent more lives being lost vs the desire to continue opposing the government.

I’ll be honest - I think innocent lives trump politics any day. Regardless of who is running the country (and how), I think we have a responsibility as members of a global community to uphold international law and our own governing principles.

I understand the quandary: aid going to Burma is being rerouted through the government, who is likely taking a cut, and redistributing itself, likely in a very inefficient way. None of us wants to support such a regime.

But here’s the kicker - we already do. Emergency relief aid is actually a very small amount of money, relatively speaking. No military regime can prop itself up on it. What this government thrives on is a much larger stream of money, and one to which we all contribute.

Burma is a country of natural gas and oil resources, and the Chinese, Russians, and South Africans have heavy investments in the area. They continue to support the junta because it’s a win-win situation for them (and let’s be frank - none of the those three countries has the best governance or human rights record).

But we support the military regime too. Despite our economic embargo, some of our own companies invest in the region. And even more insidiously, the products we buy from places like China are produced with the energy and profit China receives from its investments in Burma.

In the end, it’s not aid money that will keep the junta in control - it’s our own purchasing power.

Posted in corporate america, human rights, news | 4 Comments »

a new world order

Posted by deepali on May 6, 2008

The 50s were a period of conformity, and a celebration of all things America. After two devastating wars, we deserved the opportunity to live our American dreams. But in the 60s and 70s, as we hit an oil crisis and another involvement in a foreign war, our American idealism shrank, and the counterculture movement of the hippies took precedence. The dawning of the Age of Aquarius meant a critical rethinking of our values. We protested the war in Vietnam; we demanded equal rights for all.

And in the 80s, sick to death of starry-eyed idealism, we loosened economic restrictions and reveled in capitalism run amok. Yuppies bought cars and TVs and fancy vacations. And their kids followed in their footsteps, pushing us through the dotcom boom and bust, and into a new world of technological utopia. And underneath it all, lay the shadow of resource depletion, labor inequality, and the looming spectre of climate change.

So now we have the YAWNs, those of us in our 20s, 30s, and 40s, a generational overlap of collective whiplash. We’ve rejected the unbridled consumerism, stress, and corporate mismanagement of the past few decades. We don’t rely on stuff to reveal social status. We care about the environment in a very real way. We’ve returned to the grouplove of the hippie movement, except we aren’t angry revolutionaries - we’re idealistic technophiles. We’ll solve the problems of the world with our convictions… and our inventions.

We donate vast amounts of money to charity; we save for retirement. We take our financial cues from Bono and Warren Buffett, rather than Donald Trump and Ludacris. We’re sick of spending ourselves into debt; we’re tired of the 90/10 gap. We don’t want war and larger cars - we want real solutions to global poverty, lack of health care, mass consumer debt, and dwindling natural resources.

Looking back over the past 75 years, we see the icons that define generations. Pin-up girls, and Marlon Brando, McCarthy and Eisenhower, Cadillacs, Nixon and Vietnam War protesters, the Challenger and Coca-Cola and Wall Street. And now we have the Toyota Prius and Mohammed Yunus. Kiva. Facebook. Make Trade Fair. Freecycle. The One Campaign. The waning of Microsoft and the waxing of Google. Darfur. Melting ice caps.

In a few decades, we might cycle back to mass consumerism once again. I’d like to think we’ll break the cycle, because I can’t imagine our world can handle the 80s again (and this time with several times the population). But we are clever and inventive, and perhaps we’ll find a less consumerist way of consumerism (perhaps a recycled consumerism?). Only time can tell.

Posted in corporate america, environment, poverty | No Comments »

it’s a green world. we just live in it.

Posted by deepali on April 26, 2008

Lately, everyone’s caught the green bug.  I watched quite a bit of TV today, and I saw several interesting ads highlighting industry’s eco-friendly commitment. Of course, I’m a cynic, so I immediately dissected the ads and dismissed just about all of them.  Which might be a bit unfair, better 50% than 0%, yes?  And, corporations exist to make a profit. If they do so while being green, then hey, who am I to complain?

Of interest, Coke has a smart new t-shirt campaign.  This one will appeal to the tweens, who we know don’t care to reduce their spending in an economic downturn (unlike their parents).  The ad (brought to us by Target) explained to me (via 2 teenage girls) that the t-shirts are made of recycled Coke bottles, so if you buy it, you’ll be, like, saving the world, or something.  There’s some fabulous statistic, such as “if every Target customer, all 200 million of them, bought a t-shirt, that would be 5 million plastic bottles recycled”.  Ah, the logic of teenagers is impeccable.  Coke, here’s a thought - if every Target customer bought one less plastic bottle, that would be 200 million plastic bottles not consumed.

Another interesting ad came to me after a trip to the grocery store.  Apparently, Safeway is one of the largest users of wind/solar energy in the US.  They also support plastic bag recycling.  The trucks run on biodiesel. They are green and proud, dammit! And yet, everytime I go into one with my reusable bag, I get dirty/blank/confused looks and poor customer service.

Then there’s Toyota’s long-running ad about zero-waste production.  Ambitious, to be sure, considering that the production of cars is naturally a wasteful process.  This is rather promising, because Toyota is possibly at 100% success.  Subaru is not far behind, either. Of course, the best way to be zero-waste?  Buy a used car… or bike.

The new programs are certainly a welcome change from the past.  And zero-waste and wind power are certainly laudable achievements.  But there is still something really important that we’re missing here.  The true path to being “green” lies in reducing consumption, not just greening it.  This seems to be the point that everyone is missing.

Posted in corporate america, environment, news | No Comments »

doing good from the comfort of your own home: junk mail edition

Posted by deepali on April 15, 2008

We all get junk mail. It’s one of those facts of life you can’t ignore: birth, taxes, death, and junk mail (which keeps coming after you die). If you’re like me, it’s very frustrating to open the mailbox see the 500 things you’ve got, and then realize that most of it is junk.

Worse, some of it is even dangerous - it doesn’t take an enterprising thief too long to figure out a way to use your junk mail to his advantage… wrecking your credit in the process.

But it’s not just about your stress levels or identity theft, it’s also about the future of our planet. Consider this:

  • Every Sunday, 500,000 trees are used to produce the 88% of newspapers that are never recycled
  • 28 billion gallons of water go into the production of American junk mail annually (while 20% of the world’s population lacks access to safe drinking water)
  • Americans throw away 44 million trees every day. That is the same as dumping 500,000 trees into landfills every week.

But, there is a reprieve. A number of ways exist to help you reduce and even eliminate altogether your junk mail. You’ll save yourself the stress, and you’ll save the planet a few trees.

1. Prescreened Offers. Do the offers for new credit cards annoy you? This type of mail is called “prescreened”, which basically means you’ve “qualified” for some time of promotion or service. The most common letters you’ll receive are introductory offers for zero interest on a new credit card. These are also offers you can readily find on the internet, so there’s really no need to receive them via mail. One way to reduce this annoyance is through the FTC’s opt-out prescreen service.

2. Mailing Lists. There are other types of junk mail that you receive as well, including those from organizations that have received your address through the purchase of a mailing list. You can also opt out of this type of mail as well using the DMA opt-out service. Just like the one above, you just fill out a form and you are taken off a number of lists.

3. Catalogs. This doesn’t, however, do much in terms of eliminating your address from lists at companies that you do business with, particularly when it comes to catalogs (or charities). For this option, you’ll have to contact each business individually and specify that you no longer wish to receive any mail from them. This can be costly and time-consuming, as often you have to call to get the address to which the letter needs to be sent.

4. One-stop service. Luckily, there are excellent and cheap services that are willing to help you with this. My particular favorite is Greendimes, which has kept me relatively junkmail-free for over 3 years. When I first joined, I paid a $35 lifetime fee and they did all the work. I went from receiving on average 5-10 pieces a day, to receiving 3-5 pieces a week. It was amazing. They now offer a number of other services, including a free service in which you do the work, but they provide you all the instructions. Or for $20, you can have them take care of it. And if you sign up now, they’ll pay you $1 to get rid of your junk mail. And while they’re at it, they’re planting trees. It’s win-win-win.

These are all simple and effective tools for reducing junk mail. I’ve also noticed this helps somewhat with junk email as well, though that is much easier to opt out of. But if you are prone to junk email and you have a gmail account, consider trying this out.

Want to go a step-beyond? Consider going carbon neutral. Just remember, not all carbon offset programs are designed equally. My favorite offset organization is Native Energy. It meets all the requirements of the “gold standard”.

And while you’re going fullsteam, shoot for zero waste.

Posted in corporate america, happiness | 2 Comments »

implications of the beef recall

Posted by deepali on February 27, 2008

In case you aren’t aware, we are currently in the midst of the largest beef recall in history. Officials say you shouldn’t be concerned about health hazards. Most of the beef has already been consumed, and the recall is purely on principle.

Well, that’s true and false.

Since most of the meat has already been consumed, and there hasn’t been an epidemic of GI illness, it’s not likely that there will be one related to this incident. But, that doesn’t mean this is an isolated case, and from what we already know about USDA and the meat industry, I’m quite sure it isn’t.

Here’s the beef (so to speak) -

USDA has very little power over the meat industry. Despite a superficial appearance as a regulatory agency, USDA’s rules are mostly voluntary. The beef trust has very handily, over the past 100 years, ensured itself not only a virtual monopoly, but also virtual free reign. You think the government can protect your food? Think again. The meat industry is pretty much self-regulating, and it is not in their best interests to care about your health (and in relation, the health of meat animals).

Part of this has to do with powerful special interest lobbying in meat-packing states. Those of you in Iowa, Colorado, Kansas, Nebraska, and Texas can thank your representatives to Congress for that one. USDA has effectively been hamstrung, and lacks the budget to truly regulate this industry. There are just not enough inspectors for them to be able to do a thorough job; and if the meat industry has its way, there will never be.

So why this recall? Well, despite mad cow disease being extremely rare, some of us are scared enough to worry. In addition, the past wave of pathogenic contamination (in meat and produce) has also raised issues of food safety. And of course, the War on Terror has highlighted all the weak spots in our food production chain.

So, when video footage (shot by animal rights groups - the only people who seem to care about our health) showed clear violations of safety standards, the government had an incentive (and a cause) to step in. In addition, what makes this case unique is that most of the beef winds up in school lunches as part of the federal plan. This gives USDA greater power than usual.

Think about that for a minute. Meat that is part of the national school lunch plan is usually poor quality. We’ve always known that, and know we have even more evidence - sick cows (called downers) are beaten and abused to the end of the assembly line. This is what your kids are eating. When did we get to the point where we’ve decided that feeding our children bad food is ok?

This case has highlighted other deficiencies in our system. Mad cow disease is rare, but we actually don’t have a good handle on prevalence. Why? Because the beef industry refuses to allow mass testing of their meat animals. We slaughter 35 million cattle a year. Less than 1 million of them are tested for mad cow disease.

Cows are also fed antibiotics to aid in growth; presumably this would fight off infection as well. But as we see a rise in antibiotic resistance in microbes, you can bet that’s being fueled by antibiotic use in cows. You can also bet that the pathogens that cows pick up aren’t being killed by the growth additives.

And finally - meat slaughter is not humane. It can be, but not in a slaughter plant. Cows that are already stressed by factory farm living are then herded into a slaughter house where they are stunned before being killed. Of course, some of the cows are not quite knocked out when slaughter begins. Stress releases hormones into the blood stream that settle in muscle and fat. This stress hormone-laden muscle and fat is your hamburger. Not only are you at risk for pathogens, but you’re also being loaded with stress (and growth hormone).

So it’s not just about a few cases of tainted meat, or one factory that mishandles slaughter. It’s about a systemic failure to put the health of people first. It’s about an easy way to make a profit. And the problem will only get worse until we start seeing fundamental shifts in the way we view our food.

Posted in corporate america, food, public health | 2 Comments »

the death of a thousand small cuts

Posted by deepali on February 5, 2008

Ever forget to fill up the gas tank on the rental car before returning it? Ever miss a payment on bill or loan? Ever wonder what all those extra charges on your cell phone are?

If you answer yes to any of the above, chances are you’ve been swindled by a company looking to make a few extra bucks off your lack of vigilance. Commonly referred to as “gotcha capitalism”, the idea is simple - companies rely on you not to read the fine print, not to remember all the steps you need take to fulfil a contract, and not to question anything that sounds “official”.

Well, Bob Sullivan has written a book that we all need to read. It isn’t that we aren’t familiar with the concepts he discusses, it’s that we’re programmed to think that either a) we can’t do anything about it, or b) it’s our own fault for failing to pay attention.

Sullivan thinks otherwise, and his book Gotcha Capitalism: How Hidden Fees Rip You Off Every Day-and What You Can Do About It shows us how we can avoid the problem.

Some of the fees are minor and could be fixed easily with a little planning - ATM fees fall into this category. But some require more attention on our parts - mortgage contracts and cell phone bills come to mind.

You can get help on some of these - Patrick has an interview posted yesterday with a company that will help you with that cell phone bill. The business model looks great, and if they can diversify into power bills, they’ll definitely have my $5.

Sullivan offers a lot of tips in his book that are worth looking into and will save you money (it will definitely cover the cost of the book). Much of what he discusses is specific to industries or companies - things to look out for when refinancing, buying a car, canceling a cell phone contract.

He also offers some general advice, the most important of which is really simple: complain. Be polite, of course, but also insistent. Find out what the fees are, find out how to get reimbursed if they aren’t fair. Push as much as possible. Do not hesitate to point out what a great customer you’ve been, and how you’re willing to move on to a more agreeable company. Credit card companies will be the most responsive; grocery stores least responsive.

Your money is your business. Companies bank on your not willing to waste your time with arguing against a few bucks. But a few bucks adds up over time, particularly if we’re talking every month with several companies. Bleeding out a few bucks here and there will eventually derail your budget. So be proactive and stop up that outflow.

Posted in budget, corporate america | 3 Comments »

advice to a meat-eater from a vegetarian

Posted by deepali on January 26, 2008

As I’ve mentioned before, I’m vegetarian. After a lifetime of eating meat, I chose to stop about 2 years ago. It was a gradual process that started with giving up beef about 10 years ago and slowly spread to other types of meat, until it ended with fish. I still eat eggs and dairy, though I try to go with organic and free-range, and I’m always willing to try out vegan options.

While I will fully admit that I do not condone the meat-eating lifestyle, I do not condemn it either. I don’t have a problem with people eating meat, but I do have a problem with our meat industry.

I will also confess that I am not strict about my vegetarianism - a handful of times out of the year, I do eat meat. I’ve observed a few things in these moments, and thought I’d share with the regular meat-eating crowd.

Meat has never been a main course.

In anthropological food language, meat is a fringe food, like oil and fat. The bulk of the diet for most of human kind has been produce - leaves, fruits, seeds. 10, 000 years ago, when we discovered agriculture, we added grains and dairy to our diet. But both prior to and after that moment, meat never took center-stage. It was either too energy-consumptive (ie, hunting down game) or not cost-effective (eggs are a more sustainable source of protein than the chicken).

We eat too much protein.

Americans worry about their protein intake. They shouldn’t bother. We get far more protein than we need in our diet - the real problems are refined foods, such as sugars, and too much fat.

Cheap meat is bad meat.

For years, meat was a delicacy. The fast food industry changed that for us, and now meat is relatively cheap. But with that drop in price also came a drop in quality. Factory-farmed meat is, in a word, terrible. There is a considerable difference in taste and healthfulness between free-range and organic meat vs industrial meat.

Excess meat consumption leads to health risks.

Our rates of obesity and heart disease have increased. This is partly a result of more meat consumption, and partly a result of other aspects of our diet (processed foods). It’s also a result of lowered exercise levels. In China, which is currently undergoing the nutrition transition, we are seeing the increased rates of disease first hand. As Neal Barnard put it: “If beef is your idea of ‘real food for real people’ you’d better live real close to a real good hospital.”

Industrial animal production is cruel.

It’s no secret that animals suffer in the process (and in particularly horrific ways). What we are less aware of is who else suffers. For one, workers in meat processing facilities tend to be illegal immigrants working at far below minimum wage with little to no benefits (including health care). They also suffer one of the highest rates of occupational injury. Two, communities in which concentrated animal feeding operations (CAFOs) are located tend to suffer from economic decline and poor health. Three, this industry is little regulated and is now the largest source of industrial pollution (beating out petrochemicals). Manure from CAFOs run into our drinking water and infects us with pathogens, many of which are displaying antibiotic resistance.

We are eating ourselves to famine.

A billion people in the world do not have enough to eat. It takes seven times as much as farmland and energy to produce a cow, than to produce wheat. We make meat cheaper for ourselves, at the expense of those who go without any type of food.

There is no transparency.

You don’t know that McDonalds receives huge subsidies to train workers that never get trained. You don’t know that IBP lies on its inspection reports. You don’t know that USDA doesn’t really have a clue what happens in this industry. You don’t know that industrial animal production is unnatural, every step of the way, which has a profound effect on your health. You don’t know that your tax dollars (and your spending dollars) are fueling the cycle.

So what’s a meat-eater to do?

I’m not going to advocate giving it up altogether - that’s a personal choice that we all have to make ourselves. But consider this - studies have shown that organic diets lessen allergies, vegan diets prevent diabetes, and small farms support local economies (and pollute much less). If you ate less meat than you do currently, you’d be happier and healthier, and arguably, skinnier.

The Meatless Monday campaign is based on this idea. Healthy People 2010 is aiming to cut saturated fat consumption by 15% and the largest source of saturated fat in our diet is meat. 15% is about 1 in 7, or 1 day a week.

And those days you do eat meat, consider spending a little more for quality. It’s one thing to get a cheap cut to make broth, it’s another to actually claim that store-brand chicken thighs are actually any good. Organic and free-range are better, and better for you. Even better still is locally raised on a small independent farm. These are people who take pride in their product, resulting in a better item for your consumption.

At the end of the day, your life is your life, and only you can take responsibility for it. But many of us stumble through life without awareness of our actions and their repercussions. We fail to think about what we’re eating, where it came from, how it got to our plates. As a vegetarian, if there is one thing I’d wish for a meat-eater to do, it’s to consume with mindfulness.

Posted in corporate america, food, public health | 19 Comments »

an ode to coffee (why mass consumerism will ruin us all)

Posted by deepali on January 24, 2008

Starbucks has recently tested $1 coffee and free refills, in an effort to be more competitive with Dunkin Donuts and McDonalds. One dollar coffee. Does anyone else realize how absurdly cheap that is? I think, in our fast food nation, we’ve forgotten about the true cost of things.

When McDonalds turned beef into a commodity we could afford to eat every day (sometimes multiple times a day), it sent us hurtling down the road of cheap consumer goods (and global warming and obesity, but that’s a different post). Now, we’ve forgotten what quality means, and how much it really costs. I don’t eat meat, but even I can tell that the $2 Whopper at BK is nothing compared to the $35 steak at Morton’s. Comparing the two is like apples and oranges, and yet the comparison is made all the time. It is one thing not to be able to afford the pricey steak, it’s another to even think that the whopper is any sort of valid substitute. And yet, that’s what we’ve been led to believe.

And now, mass consumerism has ruined my favorite vice - coffee. Let me disclaim - I don’t drink Starbucks coffee. I find it overroasted and burnt. But I do respect them as a company because they tend to lead the socially conscious pack. I had hoped, as the economy took a downturn, that Starbucks would take a different approach - one of enhancing customer loyalty (perhaps even some in-store brewing of their fair trade blends). Instead, they’ve fallen prey to mass consumerism and cheaply produced goods.

Let me be blunt - $3 for coffee is not a lot. We just think otherwise, because we get so much crap for cheap. But good quality coffee should be expensive. It should also not be slugged down mugsful at a time (much like meat was never meant to be eaten so often). In a fairly priced market, with fair wages, coffee would possibly cost more. It should cost more.

One day, I want to see labeling detailing the true cost of goods. I want to know how many children were forced to carry 50-kilo bags of coffee cherries to make that cup of McDs brew. I want to know how many acres of rainforest were cleared for that cheap bag of beans from Dunkin. I want to know how much energy it took to produce my Starbucks latte.

The problem isn’t $3 for a cup of coffee. The problem is the ridiculous mark-up and the cheap cost of labor (and the strain on the global environment). I would like to think that Starbucks is taking a loss on that $1/cup in order to sell more, but I know that won’t be the case. Instead, they’ll undercut the Ethiopian co-ops and buy ridiculously cheap beans from subsistence farmers in Indonesia, further perpetuating the cycle of poverty and deforestation.

So I’m going to stick to my single-origin, fair-trade, organic, shade-grown beans and continue to brew my own $3 cup at home. I’m willing to pay the full price for quality and sustainability.

Posted in corporate america, environment, poverty | 11 Comments »

credit cards vs personal responsibility: thoughts from the injury prevention paradigm

Posted by deepali on January 19, 2008

The credit vs no credit debate is endless. Those opposed to credit cards point to predatory lending practices, while those on the side of credit cards claim that personal responsibility is key. So who’s right? Well, both are.

Let me use an example from my field. Until recently, injury was unrecognized as an essential component of public health. Of course, we realized that injuries were a leading cause of morbidity and mortality, but we’ve always held the widespread belief that they are merely “accidents” over which we have no control. It’s only been in the past few years that we’ve come to realize that there are specific risk and causative factors (and thus areas for intervention) for injury and injury events.

In 1970, William Haddon developed the Haddon matrix, which identified various factors in the three stages of an event (before, during, and after). These factors included personal, vector, environmental, and social.

When we first started address this problem of intentional and unintentional injuries, we focused on addressing behavior (personal). People’s knowledge, values, and beliefs played a role in the types of decisions they’d made, so injury prevention specialists attempted to intervene at that point. But we quickly realized that this was both cost-inefficient and ineffective.

Yes, people should make the right decision. But in practice, we make poor decisions all the time. Sometimes, we do so deliberately. But most of the time, it’s because we lack the proper tools to make the correct decision.

Generally speaking, a driver should slow down when entering a school zone. But more often then we’d like, that person does not. We could focus an educational campaign on teaching that person why they should slow down; we could even teach the children at that school to be careful while crossing the street. We call this an active intervention - one that requires action on the part of the individual. We undertake these types of interventions all the time, with varying degrees of success.

More effectively, we can also undertake passive interventions. Instead of relying on people to make the correct decision, we alter the environment such that they have little other choice. Hence we install medians, speed bumps, traffic cameras, and the like, to ensure that drivers have all the means at hand to make the safe choice.

The same can be applied to personal finance. Yes, we should all use credit responsibly. Unfortunately, too few of us are given the tool to be responsible, and for the most part, we’re actually given the tools to be irresponsible.

Few of us receive any sort of education on credit cards and debt management, or even simple budgeting. But almost all of us are bombarded with the idea that living beyond our means is ok. Even worse, the credit card companies prey upon our initial ignorance, providing ever easier ways to drown ourselves in debt.

We will, if given the right opportunities, make the right choices, even when it comes to finances. But if making the wrong choices is easier, then it’s no wonder so many people choose that road. So while education and personal responsibility should provide a cornerstone in changing behavior, there needs to be a passive intervention as well.

Simply put, credit card companies should change their ways. Or rather, the regulatory environment should change, thereby resulting in incentives for credit card companies to change. Consumer protection laws should be enacted, and the worst of credit card practices should be abandoned.

Of course, there is a fine line between protection and paternalism; we walk it all the time in public health. But the practices that were initially decried as infringing too much on our personal freedoms are also those that have saved the most lives - seat belts, child seats, speed limits. They’ve also not had an effect on the profitability of the auto industry, nor have they resulted in increased costs. And if anything, they’ve allowed for better decision-making.

Posted in budget, corporate america, public health | 2 Comments »