Changing the World With Your Wallet

The way we spend our money is a daily weapon for reform. Here, America’s most renowned consumer advocate makes the case for direct citizen action

- RALPH NADER

Speaking before college audiences, I often ask, “How many of you have never been to a McDonald’s or a Walmart?” No hands go up—except mine. I explain that I’ve never given my consumer dollars to McDonald’s because of its deadly menu of fat, sugar and salt that has increased youth obesity for two generations. I’ve similarly refused to give my money to Walmart because of its low wages and unfair competitive practices that crush small businesses.

If you’re concerned about the impact your money has on the world after it leaves your pocket, you need to define your consumer preferences. In an internet age it’s easy to research brands to see if you agree with their positions on political candidates and their stands on diversity and nondiscrimination. But rarely do enough consumers vote with their dollars to send a clear and convincing message to companies that need to change.

Why? First, it can be difficult. Wells Fargo, the regulation-resisting bank with about 5,800 branches, was finally exposed after two recent crimes: Over the course of 2016 and 2017 it was discovered that the financial institution had created up to 3.5 million fake accounts and made unnecessary auto-insurance purchases for more than 800,000 unknowing customers. The media reported the details of these crimes extensively. The bank had to pay millions of dollars in restitution and fines, regulators put a temporary moratorium on its capital expansion, and the bosses stepped down, ample pay packages in hand. But what the bank’s directors feared most was loss of customers and an enduring stock-price collapse. That didn’t happen—because as everybody knows, switching banks is complicated, inconvenient and time-consuming.