Josh Hawley joins socialists in attempt to cap credit-card interest rates. Market intervention may be politically expedient—but unforeseen, “black-swan” market intervention results can be catastrophic

Posted by bubah1mau 9 months, 1 week ago to Business
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One obvious result is that banks might simply suspend their credit card business activities—or alter their terms of doing business, leaving consumers one less avenue to settle their finances however inadvisable that approach may appear to people outside their individual financial situations.

Impact on businesses that rely on credit-card payment/demand? Generally speaking, market interference will just make business more convoluted, expensive, and unreliable.
SOURCE URL: https://dailycallernewsfoundation.org/2023/09/11/josh-hawley-denounces-usury-follows-aoc-and-bernie-sanders-with-proposed-cap-on-credit-card-interest/


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  • Posted by mshupe 9 months, 1 week ago
    Hawley is a statist, nationalist, collectivist, etc. He is not a friend of individualism or capitalism. This is typical of him.
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  • Posted by freedomforall 9 months, 1 week ago
    Don't worry, bb1m, the banking business hasn't had a whiff of free market in 110 years.
    As for Hawley ...
    Why 18%?
    Why isn't 10% usury?
    Since the lenders are not lending their own earned funds, but creating 90% of it from nothing
    and most of the rest is the capital of their depositors, how about a 2% rate which is about
    20% on the capital of their depositors?
    (Why 18%? My guess: Because the banking cartel told Hawley that would be a fine proposal.)

    How about just reversing the powers given by the fedgov to
    the banking cartel instead?
    Wait, that would mean exposing Hawley to the same treatment
    given to JFK. Mustn't offend the looting bankers.
    Better to pontificate and pretend to care about the voters.
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