OPINION: Protect Louisiana Small Business Owners and Consumers

The current economic climate has forced Americans to pinch pennies any way they can. One of the most common ways individuals save money, but also make responsible investments, is building credit. Researching which credit card is right for you is a vital component in ensuring you’re making the smartest financial decisions. One of the greatest perks consumers look for in a credit card is the perks and rewards associated. 

The Credit Card Competition Act is an ongoing debate in Congress. This legislation seeks to expand on an existing credit card policy that provided large retailers with a shocking profit increase. On the surface, more competition sounds like a great idea - but not at the expense of small business owners and consumers. Essentially, banks will be mandated to offer retailers two unaffiliated networks to process credit card transactions.  

Those in support of the Credit Card Competition Act claim this will lower credit card fees. In theory, of course, that sounds like a great idea. However, the actual repercussions of this legislation are costly.  If passed, these regulations will limit the ability of credit card companies to generate revenue- forcing them to find compensation elsewhere like raising fees and interest rates. Higher costs will drive consumers away from the businesses that have unfortunately been left with no choice. 

Leaders in Washington should be doing everything in their power to protect the small business owners - the backbone of our economy. My daughter and son-in-law’s family own a convenience store and have experienced firsthand how tough today’s economic conditions have impacted small businesses. Credit cards offer small businesses, like theirs, flexibility in their expenses and purchasing. Stricter regulations will limit the types of credit cards that small businesses, such as theirs, can accept, which will drive consumers away and towards big box retailers, such as Walmart and Target, who can withstand such drastic changes.  

The effects of the Credit Card Competition Act will negatively impact small businesses in Louisiana, such as our family’s, for many years to come. I urge US Senator John Kennedy and US Senator Bill Cassidy to protect Louisiana’s small businesses and consumers. 

Quin Bates
Marrero, LA

OPINION: Unwrapping a Potential Threat to Small Businesses and Consumers This Christmas

Creator: Joe Raedle | Credit: Photographer: Joe Raedle/Getty I

For many small businesses, the holiday season is an opportunity to increase revenue and reach a larger customer base. Up to 25% of a small business’ revenue comes from the holiday season. 

As for consumers, this means using a credit card. However, they could be much less likely to reach for one should the points and rewards systems offered cease to exist. 

For every credit card swipe, the retailer pays a "swipe fee" of 2-3%. The money goes to credit card companies and the banks that issue the cards to cover their processing and security costs.

Congress is considering the Credit Card Competition Act, a bill requiring dual-mandated networks for businesses to choose from. The intention is to reduce swipe-fee costs for businesses and consumers, but the reality isn't quite so. 

This act would increase the cost for credit card companies to fight fraud due to the exhaustive resources required by the dual-mandated networks– meaning that point rewards could be on the chopping block, even for big card companies like Visa and MasterCard.  This bill also requires that networks give away card security technology for free– eliminating all chances of security advancement in the near future.

The CEO of the Credit Union National Association, former congressman Jim Nussle, issued a statement earlier this year calling it "reprehensible that at a time when hard-working Americans are already feeling the financial pinch from inflation, big box bullies are pushing for financial breaks that would risk both the data security and access to credit for consumers and small business owners.”

While the legislation has bipartisan support in both the House and the Senate, this threat to your hard earned money could be coming by the end of the holiday season. Nearly 10,000 small businesses in Louisiana closed this year, and more could be on the way if this bill were to pass as it is written. 

If you are opposed to the Credit Card Competition Act of 2023, contact Senator Kennedy and tell him to oppose Durbin’s bill.

Alton Phillips
Monroe, LA

Kennedy explains why wages are falling under Bidenomics: “They haven’t kept up with inflation”

“The average wage of the average American has gone down after inflation. . . . workers have actually lost ground. Workers today—in Nov. of 2023—are actually making less per hour after inflation than they were in Feb. 2021.”

WASHINGTON – Sen. John Kennedy (R-La.) today detailed how real wages have fallen for Americans because of the persistent inflation under Pres. Joe Biden. Kennedy noted that weekly wages, when adjusted for inflation, have decreased 3.9% since President Biden’s first full month in office.

Key comments from Kennedy’s remarks include:

“Pres. Biden’s inflation—which is man-made, and that man’s name is Joe Biden—is costing my people, the average Louisiana family, $806—not a year—a month! Eight-hundred-and-six dollars a month. That's $9,700 a year. Now imagine, if you were making $55,000 a year and you've got to come out-of-pocket with an extra $9,700 a year.”

. . .

“What [Americans] care about is prices going down, and that’s de-inflation, and we do not have de-inflation. The point I'm trying to make is: We're stuck with these high prices. If they get inflation down to zero, those prices are not going down.”

. . .

“Since Pres. Biden has been in office, consumer goods in the United States of America are up 17%.”

. . .

“The average wage of the average American has gone down after inflation. . . . The appropriate way to look at wage increases is not to look at the raw or the aggregate increase—[it’s] looking at the increase after inflation.

“And if you take all the average wage increases in the United States of America, and you look at the average inflation in the United States of America, workers have actually lost ground. Workers today—in Nov. of 2023—are actually making less per hour, after inflation, than they were in Feb. 2021.”

Kennedy’s full remarks are available here.

Business Groups Sue EPA Over Water Rule

In a major development in the ongoing battle over environmental regulations, several business associations have filed a lawsuit against the Environmental Protection Agency (EPA) and the Army Corps of Engineers challenging their new Waters of the United States (WOTUS) rule. The Kentucky Chamber of Commerce, the U.S. Chamber of Commerce, the Associated General Contractors of Kentucky, the Home Builders Association of Kentucky, the Portland Cement Association, and the Georgia Chamber of Commerce are among the plaintiffs in the case.

The new WOTUS rule significantly expands the authority of the EPA and the Army Corps of Engineers, using vaguely defined terms to cover millions of acres of water and land features, including ponds, farms, and backyards. This has created confusion and uncertainty for landowners, businesses, and farmers, who are now required to hire expensive consultants and experts to determine whether they need permits to use their land. If they make a mistake, they could face significant penalties.

“While the Administration has laid out ambitious climate and infrastructure goals, they will not be achievable with this Waters of the United States rule, which creates needless uncertainty and endless red tape and requires businesses of all sizes to navigate an expensive and time-consuming permitting process,” said Marty Durbin, Senior Vice President of Policy at the U.S. Chamber of Commerce.

The business associations argue that the new rule exceeds the federal government’s statutory authority and is difficult to understand and use. They are asking the court to stop the WOTUS rule from going into effect while the litigation is pending by issuing an injunction, and ultimately to find the rule invalid.

“Businesses and landowners in Kentucky and across the country need predictable, stable regulations that stay within the bounds of the law and provide clear, workable rules of the road for private enterprise,” said Ashli Watts, President and CEO at the Kentucky Chamber of Commerce. “Federal, state, and local government agencies all have a role to play as partners with business in protecting clean water and the environment—but each agency must stay in its lawful lane and avoid overreach. We and our fellow plaintiffs are bringing this lawsuit to protect the interests of our members and promote a regulatory environment that is fair, economically sustainable, and legally durable.”

This is not the first time WOTUS regulations have been subject to legal battles. The previous administration attempted to provide clear definitions to comply with legal requirements, but the Biden Administration's new rule has created uncertainty and confusion, which the business associations argue is unnecessary.

The Portland Cement Association and the Georgia Chamber of Commerce have also joined the lawsuit as co-plaintiffs. The Chamber of Commerce believes that the Administration should have waited for guidance from the Supreme Court before issuing these new regulations, which are likely to be rendered out of date by the Court's upcoming decision in the Sackett v. EPA case.