The NDP and ATM Fees - a Historical Perspective
So John Murney over at his blog is making the typical right-wing argument against any sort of government intervention into the "free" market. (Or in this case the "fee" market)
He then goes on to say in the comments section (defending his post)
The fact that Canadian banks are very profitable is no excuse for banning ATM fees. Any piece of capital should be able to recoup its costs, and ATM machines are no exception.
The answer to Mr. Murney's question is 1545.
Jeesh! When did profit become a bad thing?!
That was the first year that King Henry VIII pased an Act "In restraint of usury"
For the banks to charge me $1.50 to take out $20.00 of my own money is to charge a service fee at 7.5% - instantaneous. Even if you grant them the whole WEEK to see the profit (yeah right) then that is 390% a year.
Let's see what the paragon of free market philosophy had to say about this - shall we?
That little gem is from Adam Smith from his Inquiry into the Nature and Causes of the Wealth of Nations.
In countries where interest is permitted, the law, in order to prevent the extortion of usury, generally fixes the highest rate which can be taken without incurring a penalty. This rate ought always to be somewhat above the lowest market price, or the price which is commonly paid for the use of money by those who can give the most undoubted security.
Are you telling me Adam Smith had it wrong when it came to regulating the free market?
Mr. Murney?
