Sunday, December 6, 2009

Another side effect of government intervention

One function of the Credit Card Accountability, Responsibility and Disclosure Act was to limit interest rates that the lenders could charge. This apparently cut in to credit card company profits.
In response, they are increasing and introducing other fees, including an account inactivity fee.

Everyone who voted for the Act failed at learning Economics in One Lesson: "The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy..."

I wonder how long it will be before someone proposes a new bill to prevent credit card companies from charging these fees.

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