GOP Senator Josh Hawley Channels His Inner AOC

[KenH]

"With Republicans like this, who needs Democrats?

The days where Republicans stood for free markets and limited government are over, at least as far as one Missouri senator is concerned. Senator Josh Hawley just introduced legislation that closely mirrors a plan by far-left Rep. Alexandria Ocasio-Cortez and would have the government dictate citizens’ financial decisions.
...
So, Hawley’s new plan would embrace AOC-style economics, insert federal micromanagement into Americans’ personal financial decisions, and likely leave the working class folks it’s meant to help worse off, to boot."

- rest at GOP Senator Josh Hawley channels his inner AOC with new nanny-state credit card proposal

 

[canadyjd]

So, Senator Hawley supports a bill that would limit credit card interest rates to 18% annual and he’s being called AOC?

Looks like he’s interjecting common sense into the predatory tactics of credit card companies.

I hope his bill includes limits on late charge penalties.

There is a role for federal over site. Looks like Senator Hawley is continuing to do a great job!!!

peace to you

 

[KenH]

So, Senator Hawley supports a bill that would limit credit card interest rates to 18% annual and he’s being called AOC?

Looks like he’s interjecting common sense into the predatory tactics of credit card companies.

I hope his bill includes limits on late charge penalties.

There is a role for federal over site. Looks like Senator Hawley is continuing to do a great job!!!

peace to you

Where is there any warrant in the U.S. Constitution for the federal government to control the interest rates that can be charged on a credit card? Government has only three natural functions - the military, the police, the courts. It is not a natural function for government to control interest rates.

 

[canadyjd]

Where is there any warrant in the U.S. Constitution for the federal government to control the interest rates that can be charged on a credit card? Government has only three natural functions - the military, the police, the courts. It is not a natural function for government to control interest rates.

Interstate commerce clause

How does trying to limit credit card interest to 18% make Hawley a socialist like AOC?

peace to you

 

[KenH]

Interstate commerce clause

Nope. Government has only three natural functions - interfering with interest rates is not one of the three.

Furthermore, practically speaking:

"Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez unveiled sweeping new legislation on Thursday that would impose a federal cap of 15% on credit-card interest rates.

The bill would also allow state governments to set interest-rate ceilings even lower than the federal mandate.

Naturally, Sanders and Ocasio-Cortez are framing the bill as something designed to help "ordinary people." But in reality, the legislation will only act as to reduce access to credit for low-income and other high-risk borrowers.
...
If lenders cannot price their product in a way that allows them to recover costs, they'll simply stop providing that service. Rather than face lower interest rates on credit cards — as Sanders and Ocasio-Cortez imagine will happen — high-risk borrowers are more likely to not be able to borrow using credit cards at all. Given that default rates are generally higher for low-income borrowers, the cost of collecting payments is higher. Lending to high-risk groups then is only possible if the price of those loans is higher. Without the higher price, the service will go away.

On the other hand, maybe this is exactly what Sanders and Ocasio-Cortez want. One way to claim to have "done something" about high levels of debt is to simply cut off potential borrowers from credit.

After all, there is an implicit paternalism in efforts to place roadblocks between low-income/high-risk consumers and the products those consumers may wish to purchase. In the minds of a government planner, the solution to the problem of people borrowing "too much" money is to pass a law preventing them from doing so."

- rest at Bernie and Ocasio-Cortez Declare War on the Poor With Anti-Credit-Card Law | Ryan McMaken

 

[canadyjd]

Nope. Government has only three natural functions - interfering with interest rates is not one of the three.

Furthermore, practically speaking:

"Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez unveiled sweeping new legislation on Thursday that would impose a federal cap of 15% on credit-card interest rates.

The bill would also allow state governments to set interest-rate ceilings even lower than the federal mandate.

Naturally, Sanders and Ocasio-Cortez are framing the bill as something designed to help "ordinary people." But in reality, the legislation will only act as to reduce access to credit for low-income and other high-risk borrowers.
...
If lenders cannot price their product in a way that allows them to recover costs, they'll simply stop providing that service. Rather than face lower interest rates on credit cards — as Sanders and Ocasio-Cortez imagine will happen — high-risk borrowers are more likely to not be able to borrow using credit cards at all. Given that default rates are generally higher for low-income borrowers, the cost of collecting payments is higher. Lending to high-risk groups then is only possible if the price of those loans is higher. Without the higher price, the service will go away.

On the other hand, maybe this is exactly what Sanders and Ocasio-Cortez want. One way to claim to have "done something" about high levels of debt is to simply cut off potential borrowers from credit.

After all, there is an implicit paternalism in efforts to place roadblocks between low-income/high-risk consumers and the products those consumers may wish to purchase. In the minds of a government planner, the solution to the problem of people borrowing "too much" money is to pass a law preventing them from doing so."

- rest at Bernie and Ocasio-Cortez Declare War on the Poor With Anti-Credit-Card Law | Ryan McMaken

You asked where there was warrant in the US constitution for the federal government to put controls on interest rates. The interstate commerce clause gives the federal government that authority. Saying “Nope” doesn’t change the reality the interstate commerce clause exists in the US Constitution.

Bottom line, the credit card companies will manage to put in so many loopholes into the legislation through their lobbyists, the final bill will allow them to charge whatever they want no matter the intentions of Hawley or anyone else.

peace to you

 

[KenH]

The interstate commerce clause gives the federal government that authority.

It certainly does not. What was the purpose of the Commerce Clause? It was to prevent states from stopping the free flow of goods and services across the United States. It's purpose was NOT to give the federal government the power to involve itself whensoever it pleased and howsoever it pleased in the free market of goods and services.

 

[canadyjd]

It certainly does not. What was the purpose of the Commerce Clause? It was to prevent states from stopping the free flow of goods and services across the United States. It's purpose was NOT to give the federal government the power to involve itself whensoever it pleased and howsoever it pleased in the free market of goods and services.

Well, you and I may agree it has been abused and stretched beyond the original intention, but it does exists and the feds use it to justify many laws including regulations on credit cards.

peace to you

 

[KenH]

Well, you and I may agree it has been abused and stretched beyond the original intention

"Stretched"????

I agree so much with this quote from an advertisement from Hillsdale College(below) that I have seen several times when watching programs on my Roku. As I would put it, other than the organizational directives, the United States Constitution has pretty much become nothing more than a footnote in history that is now ignored with abandon by public officials.

"We've moved so far away from the Constitution that in many ways we don't even recognize it." - Kevin Portteus

 

[canadyjd]

"Stretched"????

I agree so much with this quote from an advertisement from Hillsdale College(below) that I have seen several times when watching programs on my Roku. As I would put it, other than the organizational directives, the United States Constitution has pretty much become nothing more than a footnote in history that is now ignored with abandon by public officials.

"We've moved so far away from the Constitution that in many ways we don't even recognize it." - Kevin Portteus

Nice video.

Would you agree the states can set limits on credit card interest?

peace to you

 

[KenH]

Would you agree the states can set limits on credit card interest?

I would disagree with them doing so; however, if their respective state constitutions grant their state government the power to do so, then yes, that state government would have the power to do so.

 

[Revmitchell]

"With Republicans like this, who needs Democrats?

The days where Republicans stood for free markets and limited government are over, at least as far as one Missouri senator is concerned. Senator Josh Hawley just introduced legislation that closely mirrors a plan by far-left Rep. Alexandria Ocasio-Cortez and would have the government dictate citizens’ financial decisions.
...
So, Hawley’s new plan would embrace AOC-style economics, insert federal micromanagement into Americans’ personal financial decisions, and likely leave the working class folks it’s meant to help worse off, to boot."

- rest at GOP Senator Josh Hawley channels his inner AOC with new nanny-state credit card proposal

I don't support him on this but the "headline" is heavily sensationalistic and over the top.

 

[KenH]

I don't support him on this but the "headline" is heavily sensationalistic and over the top.

It is from a pro-liberty website that is pointing out that Senator Hawley is advocating for an act of government interference quite similar to what Representative Ocasio-Cortez is advocating for.

I understand your concern about the headline. In this age and time, all sorts of websites of various political ideologies and causes are competing for eyes to read their material. The headline was certainly more likely to catch the eye(I think I came across it on Twitter) than one that said, "GOP Senator Files Bill to Limit Credit Card Interest Rates". Now the latter headline might be enough to catch my eye, but probably not of the average person scrolling on the internet.