A bill that purports to lower borrowing costs will instead drive many people to more expensive lenders.
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Itwouldbeniceifoneofourtwomajorpoliticalpartieswasconsistentinitsadvocacyforfreemarkets—forallfreedom,forthatmatter.Instead,wegettwosenators,aRepublicanandasocialistwhositswiththeDemocrats,teaminguptocondescendinglysaveAmericansfromtheirowndesiretoborrowmoney.Theirproposaltocapcreditcardinterestat10percentissupposedtoshieldpeoplefrom“exploitative”borrowingcosts.Instead,it’sboundtocutoffhigher-riskborrowersfromtraditionalcreditanddrivethemintothearmsofpaydaylendersandloansharks.
SavingBorrowersFromThemselves“WorkingAmericansaredrowninginrecordcreditcarddebtwhilethebiggestcreditcardissuersgetricherandricherbyhikingtheirinterestratestothemoon.It’snotjustwrong,it’sexploitative.Anditneedstoend,”Sen.JoshHawley(R–Mo.)huffedthisweekinapressrelease.“Cappingcreditcardinterestratesat10%,justlikePresidentTrumpcampaignedon,isasimplewaytoprovidemeaningfulr
