It would be nice if one of our two major political parties was consistent in its advocacy for free markets—for all freedom, for that matter. Instead, we get two senators, a Republican and a socialist who sits with the Democrats, teaming up to condescendingly save Americans from their own desire to borrow money. Their proposal to cap credit card interest at 10 percent is supposed to shield people from "exploitative" borrowing costs. Instead, it's bound to cut off higher-risk borrowers from traditional credit and drive them into the arms of payday lenders and loan sharks.
Saving Borrowers From Themselves
"Working Americans are drowning in record credit card debt while the biggest credit card issuers get richer and richer by hiking their interest rates to the moon. It's not just wrong, it's exploitative. And it needs to end," Sen. Josh Hawley (R–Mo.) huffed this week in a press release. "Capping credit card interest rates at 10%, just like President Trump campaigned on, is a simple way to provide meaningful relief to working people. Let's do it."
