Reduced interest rates
I missed your answer to the question concerning President Trump wanting to limit the amount of interest that a credit card company can charge. I believe you gave a few answers as to why that would never work or wouldn’t be good for the economy. Could you please expound on that?
Terry Says
Card issuers wouldn’t take the risk. So low income people, or those with a lot of debt, would no longer get credit cards. They couldn’t make a reservation, take a trip, etc etc — much less spend money for either basic necessities or extravagances. The economy would crumble.
Probably better that people don’t get a lot of credit, and don’t go into high-rate credit card debt. But this would be like a junkie or alcoholic going “cold turkey” — removing the drug of choice. Tough on them — and very tough on the U.S. economy!
