In the news these days is the latest in series of bills which would try to make matters “fair” for everyone who has a credit card. Please understand that I’m not against fairness, per se, but against the government meddling in matters outside of its bailiwick. I see in this bill the hands of people such as Senator Dodd and Senator Representative Frank–who were interested in making everything “fair” for homeowner-wannabes a few years ago, with the current disastrous results.
John at PowerLine has a point:
Historically, it’s been a truism that banks don’t make money on credit card customers who pay off their bills every month. Instead, revenue has been raised disproportionately from the banks’ more feckless customers, in the form of fees, penalties, and–most important, presumably–the high interest rates credit card companies charge on balances. Of course, that is not necessarily unjust, as these same feckless customers cause the most trouble and expense to credit card companies, not to mention the most losses when they can’t pay their bill and default.
South Dakota’s senators are on the unpopular side of this issue, more than likely because of the credit card companies based in this state than because of holding to particular principles.
I think something which tends to get lost is the fact that Congress is dealing with another symptom of a financial problem rather than the root cause: People spending money they don’t have. But then personal responsibility is just that–and not a matter for Congress to handle on my behalf.