A proposal introduced Thursday by Senator Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY) seeks to reduce credit card debt by capping interest rates at 15%.
Currently, the average interest rate for credit cards is 17.7%.
“It’s expensive to be poor,” argues Sanders. “If you’ve got nothing in the bank and living paycheck to paycheck, you’ve got to borrow money from a bank through the use of your credit cards.”
The proposal would impose significant restrictions on credit card companies and on short-term loans (including payday loans), but would give the Fed leeway to alter rates during emergencies.
The bill also urges the US Postal Service to start offering cheap banking services – an idea that would give consumers more options and create more income for the Postal Service as it struggles to compete with Amazon.
The proposal is typical for Sanders, a lifetime critic of Wall Street who demands that financial policies be structured with the working class in mind. And while the proposal is unlikely to make it through the GOP-controlled Senate, it does present an important issue for him to talk about during his presidential campaign.
Ocasio-Cortez’s participation here is expected, given that she tends to agree with everything Sanders says. Last month, she supported his controversial push to restore voting rights to prisoners. This month, she joined him in his support for striking Uber and Lyft drivers who are demanding increased wages, an end to unfair terminations, and caps on the amount of money received by the companies.
Author’s Note: The symbiotic relationship between Sanders and Ocasio-Cortez provides several advantages.
For Sanders: AOC offers energy, fame, and sex appeal that is sure to grab voters’ attention ahead of the 2020 election.
For AOC: Sanders is an experienced politician to whom she can turn for guidance and advice; and in the eyes of some voters, support from Sanders helps validate her wild ideas (let’s just hope she isn’t mistaken for his trophy wife).
For Republicans: Pure entertainment!
Editor’s note: Sorry to be blunt, but these are two of the stupidest people on the planet…