“The current average credit card interest rate is 21 percent, but it didn’t get there overnight. In 2008, the average rate was 14 percent, at a time when the savings rate was much lower and consumers were overextended. In 2009, a Democratic supermajority in Congress passed the CARD Act, bringing a bevy of new regulations for credit card companies, such as requiring advance notice of any rate increases and limitations on fees for late payments.
Interest rates began rising immediately following the passage of the CARD Act and continued to rise as the risk-free rate—the Federal Reserve’s overnight lending rate, currently about 4.75 percent—fell to 0 percent throughout most of the 2010s. Objectively, credit card interest rates are high today, but they are arguably high as a direct result of legislation passed at the end of the 2000s. Capping credit card interest rates is simply an intervention to correct the results of previous interventions.”
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“There is a reason that credit cards carry a higher average interest rate than mortgages (7 percent) or car loans (8 percent). Mortgages and car loans are secured lending—the bank has collateral in the event of a default which increases recovery rates. Credit card borrowing is unsecured lending—lenders rely on nothing more than trust in the borrower. When losses occur, they are total and catastrophic. Credit card lending is inherently risky.
The vast majority of borrowers are unprofitable at a 10 percent interest rate. If credit card interest rates were capped at 10 percent, it wouldn’t just disrupt individual finances—it could destabilize the entire credit system. Major credit card lenders, such as Capital One Financial, would likely terminate the accounts of millions of their less creditworthy customers, which could mean anyone with a credit score of 780 or lower. To the extent possible, they might introduce new fees to make up for the loss of interest revenue, but the Consumer Financial Protection Bureau is already taking a hard look at late fees, which can be large relative to small credit card balances.
Customers who lose access to credit would have to resort to cash or debit cards—and find that it is hard to function in modern society without a credit card. Even renting a car or getting a hotel room are activities that require a credit card.”
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“Interest rates are prices—the price of money—and all prices are signals. Capping credit card rates might sound like a win for consumers, but in practice, it’s a lesson in unintended consequences. Policymakers must tread carefully, weighing the broader economic impacts before introducing well-intentioned but potentially devastating reforms.”
“A Republican judge has spent more than two months trying to overturn his narrow defeat for a North Carolina Supreme Court seat by arguing that around 60,000 ballots should be tossed out. But many residents have only recently learned that their votes are in danger of not being counted and say they have done nothing wrong.”
Demographic collapse is a huge threat to economic growth.
As countries urbanize, having kids becomes more of a burden, and as women enter the workforce, having children is detrimental to their careers and they are out of a cultural context where having children is more expected. People don’t have children at all, or women wait till their 30s where they have less time to have children and having children is biologically more difficult.
““No. 1, he had the legal authority to do it,” Graham pointed out. “But I fear that you will get more violence. Pardoning the people who went into the Capitol and beat up a police officer, violently, I think, was a mistake because it seems to suggest that’s an OK thing to do.” Graham made similar comments to CNN’s Dana Bash, saying the pardons “sent the wrong signal.”
Members of Trump’s loyal base flipped out over Graham’s mild chiding of the returned POTUS. They slammed the senator as a “snake” and a “RINO,” or Republican In Name Only.”
“Trump on Friday evening reportedly dismissed at least 15 inspectors general from their roles. The firings appear to violate federal legislation that mandates that congressional lawmakers be given 30-day notice of an intent to dismiss inspectors general.”
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“Schiff warned Americans that Trump’s decision to move forward with these dismissals carries risks given the post involves providing independent audits, inspections and investigations of government agencies.”
“the United States is far from alone in offering birthright citizenship. As of 2022, 60 countries had a provision in their legal codes or constitutions that provide at least some pathway to citizenship by jus soli, according to data from the Global Citizenship Observatory.* And more than half of those nations have a mostly unrestricted version akin to the United States’ longstanding formulation, whereby nearly anyone born in that country is guaranteed access to citizenship. (Others may provide for birthright citizenship subject to additional requirements, such as parental descent, period of residence and/or membership of a certain racial or ethnic group.)
Overall, unfettered birthright citizenship is mainly found among countries in the Americas, many of which — including the U.S. — have lengthy histories of immigration from other parts of the globe.”