I've heard many people call this piece of legislation socialisitic and I think people are a bit confused about what socialism is and isn't. Socialism is a system whereby everybody takes responsibility for everything. In it's extreme it's a horrible system to govern and even worse to regulate the economy. That doesn't mean all regulation is socialistic if it seeks to put limits on what companies and consumers can and can't do and make business more transparent. Credit cards are esentially un secured debt so they should be at a higher rate with some fees but what credit card companies have done is make the fees difficult to understand, easy to trigger and kept many in a never ending cycle of debt. They also have targeted young adults on college campuses and given out more credit than should have been given out. They weren't forced as in the case with some of the mortgage lenders they willingly gave out credit cards with high balances and misleading advertisments in some case bribing college officials. Here are some examples of credit card abuses.
0% for one year on a credit card from a store (if you don't pay it back on time you acrew all the interest at 24% for a year). I applied for a $500 tv and received a $5000 credit limit.
Pay off a credit card 4 days in advance and they apply it the day after it's due and charge you a $40 fee.
Pay off a credit card in full but they apply interest every half cycle so you're left with a small balance.
Pay the minimum for 40 years to pay off a credit card.
There are many many more deceptive advertsiements. The bill in congress is a way of establishing standard practices and making the business of credit cards more reasonable.
I am VERY UNHAPPY with Barak Obama's spending and over involvement in various industries but that doesn't mean everything he does is bad. It's not about give the guy a chance, it's about say what he does good and what he does bad and why.
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Credit Cards - The perfect example of why Business Education should be mandatory... Not for nothing but if you haven't learned the quadradic equation, shakespeare, or what a mole is by 10th grade then it's time to give up and focus on the Important Things in life --- How to be a productive citizen (how to get and keep a job, pay taxes, make educated decisions such as voting, buy insurance, and overall make a contribution to society instead of being a drag on society). But for some reason the education system always seems to be 50 years behind current times. It's time we break the "old thinking" style from our grandparents time and make a radical overhaul of the education system. One - we should save money and combine a few towns worth of superintendents. Two - Truely train students for the real world (business education at the core)...really focus on soft skills / 21st century skills. Three - Train, Train, and Train employees on how to use technology. Four - reduce classroom sizes. (use all the money you save from less superintendents and hire extra teachers so no classroom is larger then 20 students) Five - embrace technology (ie. cell phones, which are mini computers, that 90 % of students have on them).
ReplyDeleteAnd so on... (these 5 things are just the tip of the iceburg)