American credit card debt has now topped $1 trillion. And most of the people in debt don’t pay off their credit cards and thus pay very high interest rates. But never fear. Socialists Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez have introduced legislation to provide some relief. Their bill would limit what credit card companies could charge in interest rates.
Although the Bible and even various theologians have warned against usury, I don’t think that is the origin of their concern for the Loan Shark Prevention Act. Instead, they merely think that government should be a solution to any social problem in society. Most Christians would instead suggest that providing biblical counseling on money would be a better solution.
High interest rates are being charged by credit card companies, but also by payday lenders. In previous commentaries, I have talked about how some of these groups prey upon poorer Americans who need to borrow money before their next paycheck. These interest rates being charged seem exorbitant until you realize that some of the people borrowing money have a poor track record in repaying the loan.
By the way, these two socialists aren’t through. They also want the US Postal Service to provide “basic banking services” so that poorer people don’t have to pay banks a monthly service fee. This would be the same US Postal Service that loses about $5 billion each year and lost a record $15 billion in 2012. Let’s just say that the post office might not be the best model for sound financial management. And postal workers don’t need to be given the responsibility of becoming bank tellers.
These bills and proposals once again illustrate the mindset of some members of Congress who are convinced that the best solution to any social, political, or economic issue is more government.