The federal government yesterday took another step forward in its on-going quest to undermine freedom of contract and reward financially irresponsible whiners on the backs of those who exhibit virtuous economic behavior. The Senate passed credit-card legislation that restricts the right of banks, among other things, to raise interest rates on late-payers. The House, which earlier passed a similar bill, is likely to pass the Senate version today.
This is, of course, just the latest example of the government taking the power that it has been granted in order to secure rights and abusing it in order to violate rights. It’s another instance of arrogant overlords infantilizing the people. And it’s a little bizarre: The TARP was forced on the banks and the people with the excuse that banks needed money to lend, but now, eight months later, Congress is passing laws that will further discourage lending.
And of course, as is always the case when government steps in to protect irresponsible whiners from having to pay for their own mistakes, this one will hurt the responsible people, in this case credit-card users who pay on time, most likely with higher annual fees and perhaps with scaling back on rewards programs.
No government can do what ours is trying to do: make life soft and cushy. And the more it tries, the worse it makes matters for everybody.