Thanks Obama for the credit card interest rate hike.

[The_vagabond7]

Broncos724 said:

Desroko said:

I'm glad we agree that current credit-card practices are predatory.

What you seemed to have missed is that Obama is acting to limit those practices. But, bizarrely, you're blaming him for them. Again:

1. The companies are predatory.

2. Obama acts to limit their abuses.

3. They abuse one last time before the limits begin.

How did you get to 4. This is all Obama' fault? Do you honestly believe that the were never going to raise the rates again, even though you concede that they are, in fact, sleazy just like that? We went from a possible future of endless raises to a present reality of just one.

 

1.  Credit card companies are predatory but do not use illegal business practices.  Many other businesses prey on the shortcomings of people (such as cigarette companies) to make money.  But also there is (obviously) a big market for credit cards, and the companies have to make a profit somehow, otherwise what would be the point?

2. Obama does act to limit their "abuses."  However his actions will have unintended consequences.  His noble intentions will actually make things worse.

3. When the rules change the credit card companies have to also change their policies to continue being profitable.  How can you blame a company for wanting to make as big of a profit as they can?

4. So yes, this is Obama's fault.  If he seriously didn't foresee this cause-and-effect situation then it's worrying for what other unintended consequences there will be in his future legislation.

I'm only going to comment on #3 there. It's pretty easy to blame a company for trying to make the biggest profit possible if doing so is actually bad for society/markets as a whole. The free market is powerful and it's potential for innovation is amazing, but it does have that downside. Once companies become large enough to wield inordinate influence over society/politics/the markets it will almost always use that to it's own short term advantage even if it's harmful to everything else. I believe in the strongly in the free market, but I don't think it's god and I am very willing to admit it's shortcomings.