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The $50 in fee is paid to the employee at AmEx (99%+ of it), then the last % is paid into dividends and such, which people will use to buy grocery etc. In that
by NhanH 4y ago
The $50 in fee is paid to the employee at AmEx (99%+ of it), then the last % is paid into dividends and such, which people will use to buy grocery etc. In that way, the loop closes and why the point doesn’t make sense.
- tpxl 4y agoThe fees get distributed elsewhere geographically, and never make it back into the local economy. Sure, the money doesn't disappear, but the locals are worse off for it.
- ericmay 4y agoThis is the crux here. And this is what I tell people who are so insistent on highways and cars too - the productivity of your local economy is siphoned off because local coffee shops can’t afford to compete with Starbucks drive throughs so the capital leaves your local economy. Where I live a Starbucks was opened across the street from a local coffee shop and the Starbucks closed because it couldn’t compete. This is in a walkable neighborhood. Once you get to the ‘burbs and highways it’s all Starbucks.