Tag Archives: consumer

It’s Old People Who Have More Debt, Not the Young

Mother Jones

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Ylan Mui points today to a February note from the New York Fed called “The Graying of American Debt.” Here’s the basic picture:

The student debt story is about what you’d expect: young consumers have more of it, but their total debt load is lower than it was in 2003 because they have lower mortgage debt. Basically, they’re trading student debt for mortgage debt.

But older age groups make up for it with higher debt than they had in 2003. This is especially true at age 65, where total debt is up by about a third over the past decade. So what does it all mean?

The close relationship between credit score and age…reflects an average credit history that is considerably stronger among older borrowers….Further, older borrowers’ income streams are comparatively stable, and they have greater experience with credit. Survey of Consumer Finances data show that net worth levels for households with heads who are age 65 and older in 2013 are quite similar to their 2004-07 levels. This holds despite the evidence, seen in the second chart in this post, that consumers are holding substantially more per capita debt at age 65 and beyond. If history is any guide, then, we expect older borrowers to make more reliable payments. Indeed, our data show no clear trend toward higher delinquency at older ages as average balances at older ages have increased.

Hence the aging of the American borrower bodes well for the stability of outstanding consumer loans. At the same time, the likely combination of muted credit access and lower demand for credit that we observe among our younger borrowers may well have consequences for growth. The graying of American debt that we observe between 2003 and 2015, then, might be interpreted as a shift toward greater balance sheet stability, and away from credit-fueled consumption growth.

More stability, less growth. Just what old people want. But is it good for the country?

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It’s Old People Who Have More Debt, Not the Young

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How Does Ethical Consumerism Lead to Bad Behavior?

We cant be perfect. Either accept this truth, or risk driving yourself bonkers.

That said, many of us do make peace with our imperfections or, at least, say we do. The reality, however, occasionally seems to be that when were not at our best, our brains grow quietly unwilling to acknowledge were taking the low road. Whats more, not only do we refuse to see the so-called worst in ourselves, but we chastise others for their ability to be the good people we cant (or wont) be.

A great example of this can be seen in an upcoming July article for the Journal of Consumer Psychology. The study dovetails with previous research to suggest that, while people want to buy products manufactured by ethical means (think fair trade), it turns out that if were actually given the opportunity of knowing where our merchandise comes from, wed rather remain in the dark.

Whats more, if our friends and loved ones tell us the products theyve chosen to buy are made by demonstratively principled companies, we label those people preachy, unfashionable and unattractive. (This response might be all-too familiar to folks like feminists and vegans who, given the wrong audience, can barely open their mouths without being accused of behaving holier-than-thou.)

Authors of the study arrived at the conclusion that individuals who choose to buy items produced by ethical means were seen as a kind of threat to others sense of self-righteousness. But whats perhaps even more interesting is that, when surveyed, those who denigrated do-gooders revealed they didnt feel much revulsion toward companies that defied ethical standards. Thats because one feeling cannot exist without the other: If fair trade isnt a big deal, then companies that avoid fair trade arent really doing anything wrong.

All this reveals a great deal not only about our very human need to often live in willful ignorance (otherwise we might grow overwhelmed and, in turn, paralyzed by all the worlds very real horrors), but that each of us knows so little about who we really are and what we really care about.

For example, few of us would admit that we dont much care whether the clothes we buy were made by children working in slave labor conditions. And yet the fact that these practices continue, often in the name of United States consumerism, show that more than a few of us truly dont make the issue worth our time.

Its not that were bluffing, necessarily; when we say we care about sweatshops, we usually mean what we say. The issue is that were genuinely unaware that, deep down, these issues arent our priorities. This kind of unconscious lack of familiarity with our own values (or lack thereof) touches on a theory known as the introspection illusion. This is the idea that our desires are rooted in such complex psychological mire, theres no real way for us to understand why we like what we like, and why we dont like the things we find repellent.

There are dozens of experiments that seem to reveal introspection, or an attempt to understand the self, is not the means to identify our innermost truths. On the contrary, its the means for us to come up with justificationsas to why were drawn to Thing A and not Thing B, when, really, we havent a clue. Thats why many people patronize therapists. These caretakers have training and, more importantly, objectivity, and are far more likely to identify, for arguments sake, our sense of shame when we cant pay for more expensive fair trade options.

The truth is its OK to feel small when we cant achieve or dont even think to try what others do with passion and conviction. The problem comes when we start acting out against those people, or actively undermining the causes they support. Again, its about our ability to be imperfect, as well as our need to accept that the best we can do is try.

When we come into contact with individuals of whom we are jealous, we must try our best to know and admit our true feelings. In turn, we can either minimize the accomplishments of others, or strive to be more like them. At least that choice (introspection illusion be darned) is up to us.

Disclaimer: The views expressed above are solely those of the author and may not reflect those of Care2, Inc., its employees or advertisers.

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How Does Ethical Consumerism Lead to Bad Behavior?

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Tips for Decorating an Eco-Home

Usually I write about how to improve your health with good food, but today I’m going to write about another really important aspect of a healthier, greener lifehow to ensure you’re living in a healthy environment.

Sad to say, but we are exposed to toxins every day, many of which come from the home. Carpets, paints, furniture and other home products can off-gas and drastically decrease the health of indoor air. But there are ways to improve the health of your home and make your home life super green.

Choose Organics for Accessories

Choosing organic sheets, towels, pillows and other linens is good for reducing your exposure to chemicals like formaldehyde. Organic cottons do tend to be more expensive, but organic agriculture helps support sustainable farming methods and reduce the risk of chemical exposure to farmworkers. Choose GOTS certified textiles to ensure it meets standards for ecological and social responsibility. Organic textiles can be found at so many big stores now (like Target) that it makes it easier than ever to make a healthier choice.

An organic bed is a happy bed

Use Plants to Improve Indoor Air Quality

If you are in a situation where you cannot choose eco-friendly options, you can always mitigate the indoor air pollution with plants. Plants are surprisingly effective at reducing indoor air pollution, all while adding coziness and green energy to your home. Check out this list of the best plants to improve indoor air quality and learn how the many varieties of plants can help clean up your house.

Choose Healthier Paints

Always choose low or no-VOC paints for the home to ensure the paint doesn’t off-gas as it dries. Consumer Reports explains that “VOCs can cause acute symptoms, including headaches and dizziness. The long-term effects are less certain, but according to the U.S. Environmental Protection Agency, some VOCs are suspected carcinogens.” VOCs are found in paint and other household items, so you should limit your exposure to reduce your risk of complications like eye, nose, throat irritation, asthma complications and dizziness. If you have to paint with regular paint, be sure to ventilate well and wear a mask while using it.

Low or no-VOC paints are better for the home.

Find Better Furniture

New furniture and furnishings can off-gas VOCs just like paint, so choosing secondhand furniture and accessories can help reduce your impact on the planet and improve your health. That ‘new furniture’ or ‘new car smell’ is often a mixture of Acetone, Benzene, Ethylene glycol, Formaldehyde, Methylene chloride, Perchloroethylene, Toluene, Xylene and 1,3-butadienewhich makes that new car smell a bit less appealing. One of the biggest sources of these chemicals is particle board or plywood, but it’s also found in upholstery fabric and electronics. If you can’t buy secondhand, then be sure to let your furniture and accessories off-gas for a few days before closing into a room. Keeping plants near the furniture can actually help absorb some of the chemicals too.

Related:

10 Easy Ways to Make Your Shower More Sustainable
10 Simple Things You Can Do to Save Money & Energy
8 Decor Ideas for an Organic Living Room
20 Houseplants to Clear Toxins From Your Home

Disclaimer: The views expressed above are solely those of the author and may not reflect those of Care2, Inc., its employees or advertisers.

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Tips for Decorating an Eco-Home

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It’s Time to Return to Market-Based Antitrust Law

Mother Jones

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Tim Lee makes an interesting argument today. He notes that cell phone plans have gotten a lot better lately:

Next time you go shopping for a new cellphone plan, you’re likely to find that the options are a lot better than they were a couple of years ago. Prices are lower. You don’t have to sign up for one of those annoying two-year contracts. You’ll probably get unlimited phone calls and text messages as a standard feature — and a lot more data than before.

Why has this happened? Because for the past couple of years T-Mobile has been competing ferociously with cheaper, more consumer-friendly plans, and the rest of the industry has had to keep up. But what prompted T-Mobile to become the UnCarrier in the first place?

Back in 2011, AT&T was on the verge of gobbling up T-Mobile, which would have turned the industry’s Big Four into the Big Three and eliminated the industry’s most unpredictable company….But then the Obama administration intervened to block the merger. With a merger off the table, T-Mobile decided to become a thorn in the side of its larger rivals, cutting prices and offering more attractive service plans. The result, says Mark Cooper, a researcher at the Consumer Federation of America, has been an “outbreak of competition” that’s resulted in tens of billions of dollars in consumer savings.

After the AT&T deal fell through, T-Mobile needed a new strategy….So T-Mobile and its new CEO, John Legere, started changing a lot of things. In 2013, the company dropped the much-hated two-year contracts that had become an industry standard. It introduced a new price structure that offered unlimited phone calls and text messages as a standard feature….In 2014, T-Mobile added more goodies, including more generous data caps and unlimited international texting. It boosted its data caps once again in 2015.

Antitrust law in America has been off track for decades, and it’s time to get back on. The government shouldn’t worry about trying to gauge price levels or consumer welfare or benefits to consumers. That’s like trying to centrally control the economy: we don’t know enough to do it well even if we want to. Instead, the feds should concentrate on one simple thing: making sure there’s real competition in every industry. Then let the market figure things out. There are exceptions here and there to this rule, but not many.

Competition is good. Corporations may not like it, and they’ll fight tooth and nail for their rents. But it’s good for everyone else.

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It’s Time to Return to Market-Based Antitrust Law

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Ted Cruz Explains the Great Recession

Mother Jones

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Jim Pethokoukis draws my attention to Ted Cruz’s theory of why the Great Recession was so great. Here is Joseph Lawler describing Cruz’s questioning of Fed chairman Janet Yellen yesterday:

Cruz began a round of questioning by stating that, in the summer of 2008, “the Federal Reserve told markets that it was shifting to a tighter monetary policy. This, in turn, set off a scramble for cash, which caused the dollar to soar, asset prices to collapse and the consumer price index to fall below zero, which set the stage for the financial crisis.”

….Yellen, although used to obscure or hostile questions from members of Congress, seemed taken off-guard. “I think the Fed responded pretty promptly in easing monetary policy to the pressures that were emerging,” she responded, saying that she wouldn’t blame the financial crisis on the Fed failing to lower rates during the meeting. She also noted that the Fed had lowered its target rate to zero by December.

I think you can argue that the Fed should have responded sooner and more forcefully to the events of 2008, but the problem with Cruz’s theory is that it just doesn’t make sense. Take a look at the chart on the right, which shows the Fed Funds target rate during the period in question. In April 2008, the Fed lowered its target rate to 2 percent. Then it waited until October to lower it again.

So the idea here is that if the Fed had acted, say, three months earlier, that would have saved the world. This ascribes super powers to Fed open market policy that I don’t think even Scott Sumner would buy. Monetary policy should certainly have been looser in 2008, but holding US rates steady for a few months too long just isn’t enough to turn an ordinary recession into the biggest global financial meltdown in nearly a century.

Cruz would like to blame the Fed, but they bear only a modest responsibility. Better culprits include underregulation of shadow banking; a housing bubble fueled partly by fraud and partly by Wall Street irresponsibility; excess systemic leverage; and Republican unwillingness to fight the recession with fiscal policy. Unfortunately, none of those fit Cruz’s agenda. So the Fed it is.

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Ted Cruz Explains the Great Recession

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Elizabeth Warren Launches Tweetstorm in Response to Ad Portraying Her as a Communist

Mother Jones

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Elizabeth Warren launched a tweetstorm in response to an ad that ran frequently during Tuesday’s GOP presidential debate that portrayed her as a Communist dictator and slammed the Consumer Financial Protection Bureau, the watchdog agency that Warren launched before running for Senate.

Midway through the debate, Warren decided to rebut the attack ad with a series of tweets defending the myriad ways the CFPB has helped consumers since the Dodd-Frank financial reform bill, which created the agency, passed:

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Elizabeth Warren Launches Tweetstorm in Response to Ad Portraying Her as a Communist

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Tesla Meets the Real World, and the Real World Wins

Mother Jones

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OK, that’s enough about the poor. Let’s move on to stuff that upper-middle-class folks care about. Consumer Reports has been raving about Tesla electric cars for a while—so good it broke their rating system, scoring 103 out of 100!—and I’ve been wondering all that time what would happen after a couple of years when they started getting reliability data. Today I found out:

Consumer Reports withdrew its recommendation for the Tesla Model S — a car the magazine previously raved about — because of poor reliability for the sporty electric sedan….Consumer Reports surveyed 1,400 Model S owners “who chronicled an array of detailed and complicated maladies” with the drivetrain, power equipment, charging equipment and giant iPad-like center console. They also complained about body and sunroof squeaks, rattles and leaks.

“As the older vehicles are getting up on miles, we are seeing some where the electric motor needs to be replaced and the onboard charging system won’t charge the battery,” said Jake Fisher, Consumer Reports’ director of automotive testing. “On the newer vehicles, we are seeing problems such as the sunroof not operating properly. Door handles continue to be an issue.”

Ouch. Tesla stock, unsurprisingly, took a big tumble. But here’s an interesting question for you. I figure that there are probably fewer owners of the Tesla S who are moderately annoyed than there are people who are completely panicked because they rely on RushCard for all their money and can’t get to it. However, the former are rich and the latter are poor. Which story do you think will get faster and more sustained attention?

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Tesla Meets the Real World, and the Real World Wins

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The American Egg Board Is Tired of Playing Softball With You People

Mother Jones

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Here’s something trivial and yet somehow sort of fascinating at the same time. The Guardian has an article today about the American Egg Board, which, as you might guess, is in the business of promoting the use of eggs. For example: “This year the politically connected AEB provided 14,000 eggs for the White House’s annual Easter egg roll and Ivy1 was photographed with President Barack Obama.”

That’s some mighty tasty PR—and perfectly legal. But although AEB is funded by the egg industry, its board members are appointed by the Department of Agriculture. This means it’s limited to promoting the awesomeness of eggs. Attacking other foods is forbidden, a restriction that specifically includes “any advertising (including press releases) deemed disparaging to another commodity.” The Department of Agriculture does not want to be in the business of sponsoring internecine wars between American producers of food (and foodlike) products.

But it turns out that the egg people have been concerned for a while about Hampton Creek, a Silicon Valley darling that makes egg-free products. You may have seen them in the news recently, when the FDA sent out a letter telling Hampton Creek to change the name of Just Mayo, their vegan mayonnaise alternative2—since, by definition, mayonnaise contains eggs. If there are no eggs, it’s not mayonnaise. The AEB lobbied for this, and they also tried to sign up bloggers and cooking celebrities to promote eggs. But did they actually engage in advertising that disparaged non-eggs? That’s harder to say. The smoking gun appears to be a section called “Beyond Eggs Consumer Research” in AEB’s contract with their PR company. Here’s the key sentence:

For example, research will, ideally, provide actionable intelligence on what attacks are gaining traction with consumers and which are not so as to help industry calibrate level of communications response (if any) to ensure a consistent response strategy moving forward.

This is….award-worthy biz-gibberish! I’m suffering twinges of professional jealousy just reading it. Big picture-wise, it gets everything right: it’s all but impossible to even parse this, let alone use it to prove that AEB was asking for attack ads against non-egg products. It’s a masterpiece of the genre.

So is anyone going to be able to prove that AEB has been illegally targeting Hampton Creek for destruction? Unless there’s more than this, I doubt it. They’ll just say that their “response strategy” was to fight back against egg-related misconceptions and highlight all the goodness that real eggs can deliver to the dining tables of hardworking Americans. And who will be able to say otherwise?

1That’s Joanne Ivy, AEB’s CEO and its 2015 Egg Person of the Year.

2It’s vegan, but don’t let that mislead you into thinking it’s necessarily healthy. As the FDA also pointed out, Just Mayo contains too much fat to be labeled “heart healthy.” It’s not much different from ordinary mayonnaise:

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The American Egg Board Is Tired of Playing Softball With You People

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There Is Poop in Basically All Hamburger Meat

Mother Jones

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There’s a “simple explanation for why eating a hamburger can now make you seriously ill,” wrote Eric Schlosser in Fast Food Nation: The Dark Side of the All-American Meal. “There is shit in the meat.”

A new Consumer Reports investigation suggests that things haven’t changed much since the publication of Schlosser’s 2001 blockbuster. The team tested 300 packages of ground beef, bought from more than 100 grocery, big-box, and natural food stores in 26 cities nationwide. The result:

All 458 pounds of beef we examined contained bacteria that signified fecal contamination (enterococcus and/or non-toxin-producing E. coli), which can cause blood or urinary tract infections.

But not all burger meat is created equal. The researchers also compared the bacterial load of beef from conventionally raised (181 samples) cows to that of their no-antibiotic, grass fed, and organic peers (116 samples total), grouped under the heading “more sustainably produced.” Here’s what they found:

From “How Safe is Your Beef?,” Consumer Reports

The bacterial implications of beef production practices really emerged when the researchers tested the bacterial strains for resistance to antibiotics. Nearly a fifth of conventional ground beef carried bacteria three or more classes of antibiotics—more than double the number found in the “more sustainably produced” samples, and triple that found in samples from cows raised outdoors on grass.

From “How Safe is Your Beef?,” Consumer Reports

The article offers plenty of information that could explain these differences. As for why essentially all ground beef carries fecal bacteria, the slaughter and processing of huge animals is messy—feces caked on the hide or trapped in intestines can easily move onto the carcass. That’s not such a big deal in steaks and roasts, because the bacteria tend to stay on the surface, so “when you cook them, the outside is likely to get hot enough to kill any bugs.” But with ground beef, “the bacteria get mixed throughout, contaminating all of the meat—including what’s in the middle of your hamburger.”

Then there’s this problem: “The meat and fat trimmings often come from multiple animals, so meat from a single contaminated cow can end up in many packages of ground beef.”

As for why conventional production—source of 97 percent of US burger meat, according to CR—is moderately more likely to contain certain bacteria like E. coli, and much more likely to contain multi-drug-resistant strains, the report delivers a detailed look at the different production systems.

Conventionally raised cows start out on grass but spend the final months of their lives on feedlots, where they fatten on diets of corn and soybeans, even though “cows’ digestive systems aren’t designed to easily process high-starch foods such as corn and soy,” creating an acidic environment in the cows’ digestive tract that can “lead to ulcers and infections” and “shed more E. coli in their manure.

And corn and soy aren’t the only delicacies feedlot cows feast on.

Their feed can also include include candy (such as gummy bears, lemon drops, and chocolate) to boost their sugar intake and plastic pellets to substitute for the fiber they would otherwise get from grass. Cattle feed can also contain parts of slaughtered hogs and chickens that are not used in food production, and dried manure and litter from chicken barns.

In addition, they can also receive regular low doses of antibiotics, both to prevent infections and promote faster growth, although the Food and Drug Administration has launched a voluntary program to limit the latter use. One common feedlot antibiotic, tylosin—used to ward off liver abscesses—is in “a class of antibiotics that the World Health Organization categorizes as ‘critically important’ for human medicine,” CR reports.

The magazine recommends that consumers buy from the alternative supply chains “whenever possible”—”sustainable methods run the gamut from the very basic ‘raised without antibiotics’ to the most sustainable, which is grass-fed organic.” (The article contains ample detail on each.) And when you get it home, handle it carefully and cook it to 160 degrees. After all, there’s shit in pretty much all the ground beef.

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There Is Poop in Basically All Hamburger Meat

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First Amendment Law is Facing Some Very Big Changes

Mother Jones

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Adam Liptak says that Reed v. Town of Gilbert is the sleeper Supreme Court case of the past year. It unanimously struck down an ordinance that discriminated against signs announcing church service times, but only three justices ruled on the basis of existing law. The other six signed an opinion that went further, ruling that many other speech regulations are now subject to “strict scrutiny.” How far will this go?

Strict scrutiny requires the government to prove that the challenged law is “narrowly tailored to serve compelling state interests.” You can stare at those words as long as you like, but here is what you need to know: Strict scrutiny, like a Civil War stomach wound, is generally fatal.

“When a court applies strict scrutiny in determining whether a law is consistent with the First Amendment,” said Mr. Abrams, who has represented The New York Times, “only the rarest statute survives the examination.”

Laws based on the content of speech, the Supreme Court has long held, must face such scrutiny. The key move in Justice Thomas’s opinion was the vast expansion of what counts as content-based. The court used to say laws were content-based if they were adopted to suppress speech with which the government disagreed.

Justice Thomas took a different approach. Any law that singles out a topic for regulation, he said, discriminates based on content and is therefore presumptively unconstitutional.

Securities regulation is a topic. Drug labeling is a topic. Consumer protection is a topic.

This is obviously not news to people who follow this stuff carefully, but it was news to me. Apparently the reach of Reed is pretty spectacular: three laws have been struck down by lower courts in just the past two months based on the reasoning in the case. Any law that treats, say, medical records or political robocalls or commercial speech differently from any other kind of speech is in danger—and there are a lot of laws like this.

They say that hard cases make bad law. But Reed was an easy case. It failed “the laugh test” said Elena Kagan. And yet, it seems likely to have provided an excuse for an astonishingly broad change in how speech is regulated. So far it’s stayed mostly under the radar, but eventually something bigger than panhandling or ballot selfies will get struck down, and suddenly everyone will notice what happened. What then?

Professor Robert Post said the majority opinion, read literally, would so destabilize First Amendment law that courts might have to start looking for alternative approaches. Perhaps courts will rethink what counts as speech, he said, or perhaps they will water down the potency of strict scrutiny.

“One or the other will have to give,” he said, “or else the scope of Reed’s application would have to be limited.”

Stay tuned.

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First Amendment Law is Facing Some Very Big Changes

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