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

Opinion: Keep the Credit Card Competition Act far from the Senate floor

At the end of last year, Congress came together to pass the 2023 omnibus spending bill. It included funding for 105 New Hampshire-specific projects like our food banks, our public libraries, and our local emergency services.

Additionally, the billions in funding for housing assistance, nutrition access, childcare, and help with utility bills are a lifeline for folks struggling to keep up with inflation.

But sometimes what stays out of a bill is almost as important as what winds up in it. Some members were pushing to add the Credit Card Competition Act (CCCA), which would have been disastrous for small businesses, their customers, and the local banks and credit unions that serve our communities.

Read more: Opinion: Keep the Credit Card Competition Act far from the Senate floor

How Credit Card Competition Act Would Affect You

Congress likely will vote on the Credit Card Competition Act in 2023, a bill that could eliminate almost all of the funding for popular credit card reward programs like cash back and travel points.

The proposed legislation would allow retailers to process credit card transactions without getting charged processing fees, putting millions of dollars into big-box retailers’ pockets.

Read more: How Credit Card Competition Act Would Affect You

JOHNSON: National Debt Is Our Greatest Crisis

Our national debt is the greatest crisis we face. Please read: https://t.co/ndRPqSwrj9 pic.twitter.com/jZUlq8PvQ3

— Rep. Mike Johnson (@RepMikeJohnson) August 11, 2022

The Congressional Budget Office’s (CBO) newly issued long-term budget outlook ought to be required reading for members of Congress. Why? Because Congress is rushing to pass yet another big government spending and tax package, it’s obvious few have read it.

CBO does not say it in so many words, but the report brings to mind former New Jersey Gov. Richard Codey’s quip: “The good news is, we’re not bankrupt. The bad news is, we’re close.”

Read more: CARTER: The Debt Curve From Hell

RUBIO: Out of Touch Senate Democrats

Out of touch Senate democrats think electric cars, solar panels & hiring 87000 new IRS agents is more important than dealing with high prices, crime and an open border

PART Ipic.twitter.com/ReXJNkxqfx

— Marco Rubio (@marcorubio) August 7, 2022

PART II pic.twitter.com/d7DmjJa6P9

— Marco Rubio (@marcorubio) August 7, 2022

PART III pic.twitter.com/ciNLQYzf6a

— Marco Rubio (@marcorubio) August 7, 2022

A Recession Is Here, and Democrats Are to Blame

Well, it is official: As of yesterday’s bad second quarter economic report showing that our economy had shrunk by .9%, America is in a recession. This is because the first quarter report also indicated that our economy had shrunk (by 1.6%), and the commonly accepted definition of a recession is two consecutive quarters of economic contraction.

At least that was the commonly accepted definition of a national recession until Joe Biden called upon his minions to proclaim in unison that no, we were not really in a recession and the economy was actually in pretty good shape. Joe himself then made a brief comment to reporters to the effect that it didn’t seem like a recession to him, before fleeing the scene and leaving reporters to devour his easily befuddled press secretary, Karine Jean-Pierre. She promptly declared that “We’re seeing a transition into stable and steady growth…,” but she was clearly way out of her element. We seriously doubt that many folks were paying much attention to her musings on the state of the economy, anyway.

But the fact remains that things are clearly not going well- that much is obvious to even the most heedless of our fellow citizens. The economy is volatile and substantial parts of it are performing poorly. Inflation is soaring, energy prices are double what they were when this president took office, necessities like food and housing are becoming unaffordable for many, and borrowing money to stay afloat has become more expensive for all. Strangely, several million people refuse to return to the workforce despite the fact that there are plenty of jobs to be had. What’s more, the experts don’t really know where we are headed- will this be a relatively mild recession, or as many predict, are things about to get one Hell of a lot worse?

Now this is not a good place to be, and one might well ask how we got here? But first, allow me to digress for a moment: Recall that less than two short years ago, under President Trump the economy was recovering from COVID, inflation was under two percent, interest rates were near their historic lows, and energy was plentiful and cheap (gas was half its current price). Several COVID vaccines were only months away and our national debt was many trillions of dollars lower than it is now.

So how did we arrive at this sad state of affairs in so short a time? The answer is obvious- only a doddering but deceitful Joe Biden, controlled by the progressive, neo-Marxist wing of the Democrat Party, could have caused this much damage so quickly and so completely!

Who else would have begun a new presidency by attempting to shut down the eighty percent of our energy production provided by fossil fuels? Who else would have mis-spent trillions of dollars, much of it for Democrat political ends, thereby creating huge imbalances in the supply and demand for our nations’ goods, even as productivity had not fully recovered to pre-COVID levels? Too much money chasing around too few goods is the classic cause of inflation, and reducing domestic energy production even as the economy required more energy, could not help but cause gas prices to shoot up.

So how bad will the economy, and with it the lives of most American citizens, ultimately worsen? Even as I write this article, a new half-trillion dollar round of spending is wending its way through Congress, along with a tax increase. (Thank you, Joe Manchin!) This will further stoke inflation, of course, but the tax increase will make a serious recession far more likely. To tame the out-of-control inflation, the Federal Reserve last Wednesday raised interest rates another three quarters of a percent on top of the one and a half percent increases of the previous two months. Even worse, the Fed hinted at further raises in the coming months. Don’t forget that these rate increases are intended to slow down our economy, which again, will also make the recession worse.

As we teeter on the precipice of an unpredictable economic future (and I have not even touched on the rapidly deteriorating geopolitical situation, the worsening border crisis, the politicization of our school curricula, etc.), be reminded that the gross and misdirected overspending was all avoidable. The attempt to shut down most of our energy production and replace it with expensive and unreliable sources was also avoidable. Why were such basic economic mistakes ever made in the first place?

The fundamental problem here is that progressive Democrats do not learn and they do not admit the error of their ways, because they are Marxists. If we learn anything from history, it is that Marxists do not learn from history. In fact, they are even now complaining that the problem with our economy is that they have not done enough to transform the United States into a more social democratic or even outright Socialist nation.

So be forewarned and vote to save our country on November 8th, before it’s too late!

Louis Gurvich, Chairman
Republican Party of Louisiana

One Good Louisiana Success Story Right Before Christmas

Photo source: Google Play

Meaux, 50, is just five years removed from launching the food delivery startup alongside four co-founders in what he described as a windowless, “cinder-block” room in a business incubator in Lake Charles.

In that time, the company has grown at a frenetic clip, surpassing revenue projections and rolling out in city after city in Louisiana and across the Southeast. As of the beginning of December, it had more than 9,000 employees, including 400 in corporate offices, like the one on the first floor of The Daily Advertiser newspaper building in Lafayette, where he and his leadership team are based.

Last month, the company went public on the Nasdaq stock exchange after being scooped up by Texas billionaire Tilman Fertitta’s Landcadia Holdings for $308 million. For most of December, Waitr has had a market capitalization of more than $600 million, and it recently acquired a rival, Bite Squad, for $321 million, doubling Waitr's footprint.

Read more: From ideas in Chris Meaux's notebook five years ago, Waitr now employs more than 9,000 and poised to be major player in the restaurant industry

The Fruits of a Tax and Spend Governor

Photo source: Wikipedia  

Personal income in Louisiana growth slowed to a 2.3 percent rate in the third quarter of this year, a smaller gain than almost every other state, newly released figures show.

The U.S. grew personal income by 4 percent, according to the U.S. Bureau of Economic Analysis. Personal income includes income from labor, owning a home or business, financial assets and transfers.

Louisiana ranked 48th in the rate of growth. Mississippi, also at 2.3 percent, ranked 49th, and Missouri, at 2.1 percent, ranked 50th.

The state added $1.19 billion in personal income during the period, including $796 million in net earnings.

Farm earnings took the biggest hit in the quarter, down $101 million. Mining, quarrying and oil and gas extraction fell by $75 million.

Read more:  Louisiana personal income growth lags behind nation in third quarter

JBE's Chinese Investment Goes Down the Drain

Photo source: Inside Sources

Cajun Conservatism recently pointed out that our governor decided to do business with China in this post.  Now, Congressman Peter King (R-NY) addressed, in a recent House Intel Committee meeting, that a Chinese company, Wanhua Chemical, who John Bel Edwards gave state taxpayer money to, is reconsidering their investment in Louisiana.  As indicated in this piece, it is troubling to have an "economic enemy", as President Trump has called China, acquiring American technology.

China aggressively seeks to acquire American technology and intellectual property through multiple vectors including: physical and cyber theft, forced technology transfers, evading United States export controls, export restraints on raw materials, and investments in more than 600 high-technology assets in the United States worth close to $20 billion.

Secondly, this is a clear indication of the trade imbalance that remains between the US and China.  The main reason that this project was cancelled was because of labor and material costs.  The citizens of Louisiana should be rightly concerned about a plant being built with Chinese material and being fabricated by Chinese labor.

GROW LOUISIANA COALITION: Act Now to Support Steps to Improve Louisiana's Business Climate

Photo source: Grow Louisiana Coalition

When we grow business investment and bring new jobs here, we grow Louisiana. Attracting new projects and investments in our state often relies on our parish and state governments encouraging capital investment and job-creating activities.

For decades, the Industrial Tax Exemption Program (ITEP) has been Louisiana’s most important economic development tool. After nearly two years of uncertainty and confusion, the state’s economic development agency has proposed new guidelines that could be the first step in the right direction.

For more than 4 years, we have stood up for jobs in Louisiana. Our state’s leaders need to hear our voice again.

Click here to see and review the proposed rules from the State of Louisiana.