If the republicans are obsessed with putting "more money in people's pockets" and "bringing down the deficit," why don't we decrease the amount credit cards are allowed to charge in interest? We could return to the caps on lending interest rates to what they were 20 years ago.
Wouldn't that solve both probelms at the same time?
I think usury laws were a good idea.
My understanding is that they disappeared because about 15 years ago, North Dakota, in an attempt to entice banking business to the state, increased the rate that they defined as usury. It worked. Banks moved there, so competition developed between states for banking business by increasing usury rates and the interests rates on credit cards started climbing.
I think the federal government could make a decision about what defines usury and solve this problem.
I think this would be a pretty easy political sell at the moment. Defending credit card interest rates would be tough - even for the far right.
Sorry for such a short diary but I'm curious to hear what people think. I'm not an economist so maybe I'm missing something obvious or big. If I am, I'm guessing someone will let me know.
UPDATE: oceanstar17 just pointed out it was South Dakota (not North Dakota) that lacked usury laws and caused the court case that allowed this cascade.
My memory is clearly impaired.