Sanders, Ocasio-Cortez Propose 15% Cap on Credit Card Interest

ssolitare

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Haha good point, but we can only bail out the banks so many times, man. At some point, we have to actually be responsible.

Folks are happy talking about ecological disaster, but what about financial disaster? The more we do this, the more we strain our financial system, and the more painful the next bubble pop becomes.
I meant shouldn't give them out like candy.
 

StormCell

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The sad thing is this: if we handed all these people with bad credit bank cards (instead of credit cards) to Jeff Bezos's bank account, they could spend to their hearts' contents and he would never even notice the amount of money spent. His balance would even still go up, probably...
 
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bigedole

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The sad thing is this: if we handed all these people with bad credit bank cards (instead of credit cards) to Jeff Bezos's bank account, they could spend to their hearts' contents and he would never even notice the amount of money spent. His balance would even still go up, probably...
Here, try saying these two things to your phone:

"Ok Google, How much is Jeff Bezos currently worth?"

"Ok Google, How much credit card debt is there in the United States?"

Get back to us with what you discover and how you feel about it.
 

sahlberg

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It is very easy. Pay off the CC at full at the end of every billing period.
Then you never pay any interest.

You use a credit card to pay for things you can not afford? Or instead of saving up before you purchase something?
That is your problem, not the fault of the CC company.


You need to purchase something that will take months/years to pay off and you don't have the cash?
The CC is not meant for these type of transactions.
But it is easy. Go to the bank and ask for a loan. If the bank says NO then you should not make that purchase.
Simple as that.

Goverment should not get involved in stopping people from being stupid. Stupid will always find a way to circumvent any regulation and continue being stupid.
 
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Miku Miku

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Never understood why people make a big deal about free rewards with credit cards and points.

The credit card company is smarter than you, you’re paying for it just don’t realize it.
The guy from Catch Me If You Can, the legendary criminal and scam artist who later worked for the FBI because of his talents basically recommends using a CC for every single purchase no matter what starting from a very young age. Said it at a Google Talk he did. Was kinda interesting. If you just only spend money you have and pay it off each month, it's several more benefits than a debit card.

This by the way, is a terrible idea. As others have stated, this will hurt those who credit isnt good enough to get a lower interest card. I remember when I got a card, with high interest that allowed me to start out. Without it, I have no idea how I would have gotten going.
I'm pretty sure people can still start out with a secured CC. It means you literally make a deposit before you are even given a card. After 5 months of on time payments, you get your cap slowly raised. You can literally pay a CC company $500 and get a cap of about $600, then they will raise it slowly. And if you close the card you get your $500 back, or if you are graduated to a normal CC they give it back.

It's of course possible that people have credit ratings so toxic they wont even get these, but it's a much lower risk for CC companies and basically designed for people to repair their credit if they want.
 
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StormCell

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Here, try saying these two things to your phone:

"Ok Google, How much is Jeff Bezos currently worth?"

"Ok Google, How much credit card debt is there in the United States?"

Get back to us with what you discover and how you feel about it.
That's an over-simplification. The total amount of credit card debt has accumulated over decades and is also growing in part due to the high interest rates. How many of these people are just moving their debts around from one creditor to another while accumulating more fees and adding to their debts in the process?

My comment is totally tongue-in-cheek and not a serious proposal. It started out as "What if we gave them bank cards for the 1% of the 1%?" and I dumbed it down to "Jeff Bezos" to be sure people would understand better.

In all seriousness, the real answer here is to not give credit cards to people who have shown they can't balance their own budget.
 
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bigedole

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I think it's hilarious that Bernie or Crazy lady think lowering the interest rate through force will do anything to help these people. It's like the minimum wage. Nobody pays $15 an hour for a $10 an hour job. No one is giving a 15% interest rate credit card to 25% interest rate risk applicants.

Next will be having the government issuing credit cards directly, or subsidizing the issuing of them the way they played around with home purchase loans. Guess we'll see if those idiots learned the lesson the subprime mortgage crash tried to teach us!
 

dionysus

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2019 Headline: Credit card companies exploit the poor and minorities by offering them high interest rates.
2020 Headline: Law passed capping credit card interest rates.
2021 Headline: Credit card companies discriminate against the poor and minorities by denying credit card applications.
2022 Headline: Government steps into lending industry by subsidizing low income and minority credit cards. Congressional Budget Office projects the program will make money.
2023 Headline (only on right wing sites): The results are in, no profit and government subsidies for credit cards are adding to government liability to the tune of $50 Billion a year.
2026 Headline: Subsidized credit card repayments to the government are keeping people in poverty and lowering poor and minority home ownership rates and delaying childbearing.
2027 Headline: Presidential Candidate AOC announces plan to forgive all credit card debt of participants in low income and minority credit card program as it perpetuates the cycle of poverty and replace program with UBI.
 
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ssolitare

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It is very easy. Pay off the CC at full at the end of every billing period.
Then you never pay any interest.

You use a credit card to pay for things you can not afford? Or instead of saving up before you purchase something?
That is your problem, not the fault of the CC company.


You need to purchase something that will take months/years to pay off and you don't have the cash?
The CC is not meant for these type of transactions.
But it is easy. Go to the bank and ask for a loan. If the bank says NO then you should not make that purchase.
Simple as that.

Goverment should not get involved in stopping people from being stupid. Stupid will always find a way to circumvent any regulation and continue being stupid.
Indeed. But we say yes yes yes yes yes to people who need the money when it comes to credit cards.

Despite the best practices you listed, people justify their actions. So having some regulation is fair, because at this point we know what people are going to do.
 

StormCell

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I think it's hilarious that Bernie or Crazy lady think lowering the interest rate through force will do anything to help these people. It's like the minimum wage. Nobody pays $15 an hour for a $10 an hour job. No one is giving a 15% interest rate credit card to 25% interest rate risk applicants.

Next will be having the government issuing credit cards directly, or subsidizing the issuing of them the way they played around with home purchase loans. Guess we'll see if those idiots learned the lesson the subprime mortgage crash tried to teach us!
Isn't it just as crazy as all the Dollar stores in the south? I mean, no one is selling the same products found elsewhere for as little as a dollar. It is always a bad deal. It's always going to be a bad deal. But the people who choose to shop at these kinds of stores will continue to do so because it makes sense to them. They're getting less for their dollar, but they walked in with a dollar and walked out with something. It's the same with these credit cards. If they can qualify for one, then they can get that new TV and game console from the Wally World along with that new CoD. It's fun for now. The bill won't be due until over a month later! Who has time to think that far out? :messenger_winking:

PS. I totally think we ought to intervene on these business models to stop them from preying on these people... because eventually their problem will be our problem. Just like I think the 1% needs to be taking notice to our problems. Eventually it will all become their problems unless they kill the rest of us while we sleep.....
 

bigedole

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Isn't it just as crazy as all the Dollar stores in the south? I mean, no one is selling the same products found elsewhere for as little as a dollar. It is always a bad deal. It's always going to be a bad deal. But the people who choose to shop at these kinds of stores will continue to do so because it makes sense to them. They're getting less for their dollar, but they walked in with a dollar and walked out with something. It's the same with these credit cards. If they can qualify for one, then they can get that new TV and game console from the Wally World along with that new CoD. It's fun for now. The bill won't be due until over a month later! Who has time to think that far out? :messenger_winking:

PS. I totally think we ought to intervene on these business models to stop them from preying on these people... because eventually their problem will be our problem. Just like I think the 1% needs to be taking notice to our problems. Eventually it will all become their problems unless they kill the rest of us while we sleep.....
I'm not sure I buy your assertion that people need to be rescued from themselves. It's not the 1%'s problem that people spend money they don't have on things they can't afford. I've never seen a poor person drowning in debt who was good with money. I've had a credit card since I was 18. including a 3 year stretch of my life where I was living paycheck to paycheck with about 2 to 3 dollars a day budgeted to food and sleeping on the floor because I couldn't afford a mattress. I've never once paid interest on one of my cards in my life.
 

ssolitare

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I'm not sure I buy your assertion that people need to be rescued from themselves. It's not the 1%'s problem that people spend money they don't have on things they can't afford. I've never seen a poor person drowning in debt who was good with money. I've had a credit card since I was 18. including a 3 year stretch of my life where I was living paycheck to paycheck with about 2 to 3 dollars a day budgeted to food and sleeping on the floor because I couldn't afford a mattress. I've never once paid interest on one of my cards in my life.
That's good for you, but millions upon millions aren't. Considering that we know this, we can put some things in place to reduce CC companies from feasting off people (will still feast, but a bit less). Interests caps is a sound regulation , even if it has adverse effects here and there.
 

cryptoadam

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Just means more annual fees, lower credit limits and other restrictions.

But I won't really fight for bank profits. I barely use CC's anyways.

Just wondering if the plan is to make this retroactive or going forward.
 
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Whether 15% is the correct rate or not, I actually kind of am in agreement with AOC. Although any kind of cap will just mean people who pay things on time get higher rates to balance out profits being lost on high debt/high interest rate people.

There are laws that cap interest being paid (usury laws). But I'm too lazy to check what that max rate is.

Even though lots of people can pay bills on time, some people can't.

It can be argued let those people with insane debt deal with it, but some people are just plain morons. And sometimes you need moron laws. Although maybe reducing rates just means that big time spender buys even more stuff? Who knows.

Just like gambling. Just about every province and state has laws against placing a slot machine. You can't just plunk one anywhere.... aside from Vegas it seems. They do this to protect impulsive gamblers from throwing away their money at a slot machine on every corner.

Vegas is retarded. You get off the airplane and the first thing you see as you exit are slot machines right in the hallways!
 

Shy Fingers

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Not a bad move politically. They can point back to this and say they're against big banks taking advantage of the little guy, while the regulation would be rather minor
 
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sahlberg

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Indeed. But we say yes yes yes yes yes to people who need the money when it comes to credit cards.

Despite the best practices you listed, people justify their actions. So having some regulation is fair, because at this point we know what people are going to do.
Well, true, but it would completely shut off people with terrible credit from having credit at all.
But that might be a good thing.


Off on a tangent:
If it comes to regulation of credit/debit cards, I think it would be far far better to add regulation to stop banks from refusing to open bank accounts and issue debit cards to people with poor or no credit score.
I.e. make getting a debit card an enforceable right, just like right to have electricity and water connected to your house.
 

iamblades

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All my cards are high interest cards because they are all rewards cards.

Interest I've actually paid? 0

People generally make better financial decisions than the government does, especially economically illiterate assholes like these two.
 

Cybrwzrd

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As usual...as expected... socialists are great at spending other people’s money (or in this case, telling Credit Card companies how much they can charge when taking a risk loaning folks money)
Usury is a sin by the way. Taking 30% is far beyond excess. Hell, net profit for corporations above 5% should be illegal. Either it needs to be paid out to investors in dividends or the company needs to increase wages to hit those numbers.

Stock buybacks also should be illegal by the way. Same with hording cash beyond x% or annual income. It needs to be paid out to investors or stakeholders.
 

iamblades

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Usury is a sin by the way. Taking 30% is far beyond excess. Hell, net profit for corporations above 5% should be illegal. Either it needs to be paid out to investors in dividends or the company needs to increase wages to hit those numbers.

Stock buybacks also should be illegal by the way. Same with hording cash beyond x% or annual income. It needs to be paid out to investors or stakeholders.
This is total nonsense though. First is that dividends are after profit distribution, which is what leads to the whole double taxation on dividends issue.

Why would people risk their capital for a chance at a maximum of 5%? Why would a new competitor join an industry if the dominant player is only making 5% profits. If a company is making 30% profits(which no one does), it incentivizes everyone with capital to spare to build a competitor to that company, it's how the market is supposed to function. If you arbitrarily limit profits, you eliminate this incentive and distort the market.

Also stock buybacks effectively function the same as dividends, they are just favored nowadays due to tax laws. I've argued in favor of getting rid of the cap gains tax rate before, which would eliminate the need for this practice, but there is nothing wrong with it in and of itself.

Also what happens when the profits are due to a one time event such as selling off an asset with the plan to invest it in a new venture? Anytime a company sells an asset and exceeds your arbitrary cap, it has to distribute the profits. Are you calculating profit based on revenue or return on capital? How are you accounting for time value of money if you are using return on capital?

Also, again and again, there is no such thing as hoarding cash, Apple doesn't have a Scrooge McDuck vault of gold coins, the money is in a bank or a money market fund.. The shareholders can vote to have the cash distributed if they choose, but if they prefer the corporation to hold on to it in case of an investment opportunity, that is their business, not yours.

There are so many problems with this idea that it would require a book, but I'll leave it at those.

Also whatever your beliefs about sin are, we have separation of church and state for a reason. Ask your god to smite bank of america or whatever you want, don't try to use the power of the state to enforce your morality though.
 
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gunslikewhoa

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Never understood why people make a big deal about free rewards with credit cards and points.

The credit card company is smarter than you, you’re paying for it just don’t realize it.
Use a card. Pay it off immediately. It doesn't cost me a penny.

At least I think that's how it works. If only those evil geniuses would send me a statement every month so I could see for myself...
 
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sahlberg

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Also what happens when the profits are due to a one time event such as selling off an asset with the plan to invest it in a new venture? Anytime a company sells an asset and exceeds your arbitrary cap, it has to distribute the profits. Are you calculating profit based on revenue or return on capital? How are you accounting for time value of money if you are using return on capital?
Once the means of production are owned by the state, the conundrum you describe is simply a book-keeping zero-sum game of moving an asset from column Foo to column Bar in a 5 year plan.
 
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Eiknarf

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Use a card. Pay it off immediately. It doesn't cost me a penny.

At least I think that's how it works. If only those evil geniuses would send me a statement every month so I could see for myself...
Yup
That’s what my wife and I do.
Use the three credit cards, and pay em off at the end of the month. Zero balance. We each have over an 800 credit score

Credit Cards aren’t for buying shit ya can’t afford! “Hey I can charge this and take it home today and pay it off over the next nine months!”

No! That’s not what it’s for! But it seems every other person I know is using it that way and only hurting themselves
 

bigedole

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Usury is a sin by the way. Taking 30% is far beyond excess. Hell, net profit for corporations above 5% should be illegal. Either it needs to be paid out to investors in dividends or the company needs to increase wages to hit those numbers.

Stock buybacks also should be illegal by the way. Same with hording cash beyond x% or annual income. It needs to be paid out to investors or stakeholders.
@iamblades covered your post pretty well, but I feel like you're a reasonable and smart fellow and I'm earnestly curious if you think everything we have and the companies that produce them would exist if 60 years ago the government placed a 5% cap on what profits they were allowed to make. Like, do you have any grasp of how expensive it was to actually develop semiconductor technology that has scaled down to where we are today? Do some reading, learn about how much these people/companies invest in these things and seriously ask yourself if you think nothing would change if they weren't allowed their 30% margins.
 
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Musky_Cheese

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Yup
That’s what my wife and I do.
Use the three credit cards, and pay em off at the end of the month. Zero balance. We each have over an 800 credit score

Credit Cards aren’t for buying shit ya can’t afford! “Hey I can charge this and take it home today and pay it off over the next nine months!”

No! That’s not what it’s for! But it seems every other person I know is using it that way and only hurting themselves
The correct answer right there
 

ssolitare

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Yup
That’s what my wife and I do.
Use the three credit cards, and pay em off at the end of the month. Zero balance. We each have over an 800 credit score

Credit Cards aren’t for buying shit ya can’t afford! “Hey I can charge this and take it home today and pay it off over the next nine months!”

No! That’s not what it’s for! But it seems every other person I know is using it that way and only hurting themselves
Credit cards are not for people in need, or who can't keep savings via not making enough money or being irresponsible.

But those are the prime customers to CC companies. People should treat it as a tool to higher their credit score, but when you get money like that you can justify spending any way you wish (oh I'll just work extra hours and pay it off).
 

Cybrwzrd

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This is total nonsense though. First is that dividends are after profit distribution, which is what leads to the whole double taxation on dividends issue.

Why would people risk their capital for a chance at a maximum of 5%? Why would a new competitor join an industry if the dominant player is only making 5% profits. If a company is making 30% profits(which no one does), it incentivizes everyone with capital to spare to build a competitor to that company, it's how the market is supposed to function. If you arbitrarily limit profits, you eliminate this incentive and distort the market.

Also stock buybacks effectively function the same as dividends, they are just favored nowadays due to tax laws. I've argued in favor of getting rid of the cap gains tax rate before, which would eliminate the need for this practice, but there is nothing wrong with it in and of itself.

Also what happens when the profits are due to a one time event such as selling off an asset with the plan to invest it in a new venture? Anytime a company sells an asset and exceeds your arbitrary cap, it has to distribute the profits. Are you calculating profit based on revenue or return on capital? How are you accounting for time value of money if you are using return on capital?

Also, again and again, there is no such thing as hoarding cash, Apple doesn't have a Scrooge McDuck vault of gold coins, the money is in a bank or a money market fund.. The shareholders can vote to have the cash distributed if they choose, but if they prefer the corporation to hold on to it in case of an investment opportunity, that is their business, not yours.

There are so many problems with this idea that it would require a book, but I'll leave it at those.

Also whatever your beliefs about sin are, we have separation of church and state for a reason. Ask your god to smite bank of america or whatever you want, don't try to use the power of the state to enforce your morality though.
Actually what I intend is for businesses to take a stakeholder first mindset and plan for the long term over short term gains. They should spend their earnings on r&d and employees and let the vultures on Wall Street have what remains.

I’m actually an atheist so my idea of sin may be different than most. But usury is against both Christian and Islamic beliefs. They aren’t wrong.

I do believe that our investor class have become moochers and lazy from easy money and their shortsightedness stifles innovation and the middle class. Why do you think Musk wanted to take Tesla back to being private?
 
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Shy Fingers

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Kinda weird how you can get around usury laws like that. Operate out of one state, but then do business in another state and ignore that state's laws. Will have to look into the legal reasoning later in more detail, as the summary here isn't quite good enough for my curiosity. Especially since Amazon can't do that with state tax anymore.

So to change this, it would have to be at the federal level with the current SCOTUS precedent. This proposal would be the viable path to do it.
 

Cybrwzrd

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@iamblades covered your post pretty well, but I feel like you're a reasonable and smart fellow and I'm earnestly curious if you think everything we have and the companies that produce them would exist if 60 years ago the government placed a 5% cap on what profits they were allowed to make. Like, do you have any grasp of how expensive it was to actually develop semiconductor technology that has scaled down to where we are today? Do some reading, learn about how much these people/companies invest in these things and seriously ask yourself if you think nothing would change if they weren't allowed their 30% margins.
I have no problems with companies making a large gross profit. I have issues with them not using those gross profits for investment back into the company, employees, and community. When I said net profit I should have been more specific and said retained earnings. Honestly I’d love to see retained earnings at 3% or less. Nearly everything a company makes should be going back into the company for growth, out to employees, and last and certainly least- paid out to investors, in that priority.

Ideally shouldn’t a company aim for 0 operating profit as a means of tax avoidance anyways?
 

bigedole

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I have no problems with companies making a large gross profit. I have issues with them not using those gross profits for investment back into the company, employees, and community. When I said net profit I should have been more specific and said retained earnings. Honestly I’d love to see retained earnings at 3% or less. Nearly everything a company makes should be going back into the company for growth, out to employees, and last and certainly least- paid out to investors, in that priority.

Ideally shouldn’t a company aim for 0 operating profit as a means of tax avoidance anyways?
How would companies save up for large capital expenditures/investments? Why would you restrict the founder of a business from reaping all of the profits he can? Your ideas are nonsense, very few people go into business thinking about the good of humanity. They go into business to make money, and money is the single biggest driver of innovation and technology in the world.

I get it, you don't like corporations making shit tons of money while paying people crap wages to work in their warehouses. But what is liked has never been a good way to drive innovation and development. Henry Ford didn't come up with the assembly line because he was a swell guy. He was a greedy asshole and he made the entire world much better for it.
 

Cybrwzrd

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How would companies save up for large capital expenditures/investments? Why would you restrict the founder of a business from reaping all of the profits he can? Your ideas are nonsense, very few people go into business thinking about the good of humanity. They go into business to make money, and money is the single biggest driver of innovation and technology in the world.

I get it, you don't like corporations making shit tons of money while paying people crap wages to work in their warehouses. But what is liked has never been a good way to drive innovation and development. Henry Ford didn't come up with the assembly line because he was a swell guy. He was a greedy asshole and he made the entire world much better for it.
I feel like we are speaking different languages here. Companies tend to take out loans to pay for large purchases. I am also not restricting the founder of a company from paying himself however much he wants to.

I am all for selling something for a dollar that costs a penny to manufacture, if the market allows for it. What I am also saying is you had better be taking those 99 cents and be pouring them back into your company so you can learn to make it for a tenth of a cent, and also incentivizing your employees to figure it out for you.

Henry Ford was a greedy asshole who also believed in paying his workers enough money to buy the products he sold.
 
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bigedole

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I feel like we are speaking different languages here. Companies tend to take out loans to pay for large purchases. I am also not restricting the founder of a company from paying himself however much he wants to.

I am all for selling something for a dollar that costs a penny to manufacture, if the market allows for it. What I am also saying is you had better be taking those 99 cents and be pouring them back into your company so you can learn to make it for a tenth of a cent, and also incentivizing your employees to figure it out for you.

Henry Ford was a greedy asshole who also believed in paying his workers enough money to buy the products he sold.
We don't need the government to compel businesses to do this. The free market already does. If someone can make a better product that costs less, then that business loses. If you want to make a business that ultimately makes no money, go right ahead, no one is stopping you. Suggesting the government should be used to clobber this behavior out of corporations is scary, to say the least. You're literally saying Apple should be forced to take out a loan if they want to open a new site in some random place. It's utter nonsense.
 

Cybrwzrd

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We don't need the government to compel businesses to do this. The free market already does. If someone can make a better product that costs less, then that business loses. If you want to make a business that ultimately makes no money, go right ahead, no one is stopping you. Suggesting the government should be used to clobber this behavior out of corporations is scary, to say the least. You're literally saying Apple should be forced to take out a loan if they want to open a new site in some random place. It's utter nonsense.
Where did I say they can’t have cash holdings at all?

Do you think Apple doesn’t take out loans to fund its business activities?

If a company has 0 operating profit that doesn’t mean they aren’t making money. Hell since it is newsworthy- Uber is “losing” billions because it throws everything it makes back into company. Amazon too has a minuscule profit margin, because it too throws nearly everything back into the business.
 
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No company should ever be mandated by government to give away profits to hit a magic threshold. They already get taxed on profits. The way companies get dinged to spend is through dividend payouts and investors voting for them to use that money to procure additional businesses, pay off loans, or expand.

That's like saying every person should also give up excess disposable income and only keep 5%. Sae thing can be said. If Bob and Betty aren't going to use the extra money, then government takes it.

Not only is that a really odd way of being Robin Hood, but also such a small buffer doesn't allow companies to save for a rainy day. Not every company make big profits every year. Sometimes it's a stinker decade and those corporate coffers are what keeps business alive.

For example, Sears used to be the biggest retailer in the world. They are toast now, but if they were held to a maximum profit threshold, they wouldn't have funds to survive now (though they are basically dead). But they would have disappeared probably 30 years ago.
 
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rykomatsu

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Yup
That’s what my wife and I do.
Use the three credit cards, and pay em off at the end of the month. Zero balance. We each have over an 800 credit score
Zero balance or statement balance? My credit score drops when I have zero balance reported by 9-15 pts, whereas if I keep a rolling balance of 1-10%, it only changes 1-3 pts. You don't pay interest if the statement balance is paid off every month even if the current balance is higher than the statement balance.
 
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Eiknarf

Member
Mar 25, 2019
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Zero balance or statement balance? My credit score drops when I have zero balance reported by 9-15 pts, whereas if I keep a rolling balance of 1-10%, it only changes 1-3 pts. You don't pay interest if the statement balance is paid off every month even if the current balance is higher than the statement balance.
The whole statement balance. Even if it’s part of the following month’s statement, I pay it down 90% of the time- because like I said, if I charged something (which is almost everything) that means we can afford it. I simply try to walk around with zero cash (a few singles for the ice cream man for the kids)
 

Super Mario

Member
Nov 12, 2016
837
901
250
If 15% was so reasonable, there would be more banks out there offering that, undercutting the competition. Could potentially even see a big enough swing to do a bit of a market correction. The free market should be allowed to be free. In the end, cutting the rate for people who are more likely to have problems paying back their bills would prove to be a disastrous business model.

What's not surprising is the article floating around how the average person spends $18,000 a year on non-essentials. Yet, none of the Liberal media network has carried the story. It's much better policy for them to have an irresponsible base that needs Democratic policies to "protect them."

 

cryptoadam

... and he cannot lie
Feb 21, 2018
4,718
4,339
510
If 15% was so reasonable, there would be more banks out there offering that, undercutting the competition. Could potentially even see a big enough swing to do a bit of a market correction. The free market should be allowed to be free. In the end, cutting the rate for people who are more likely to have problems paying back their bills would prove to be a disastrous business model.

What's not surprising is the article floating around how the average person spends $18,000 a year on non-essentials. Yet, none of the Liberal media network has carried the story. It's much better policy for them to have an irresponsible base that needs Democratic policies to "protect them."

The first 4 are all essentially the same thing LOL, food and drinks. Why do American's spend so much eating out?

Then you have cable at 90$ and TV/Music streaming at 50$.

Gym membership should not be included as a "Luxury" because American's need it after spending nearly 800$ a month eating out and 140$ infront of the TV/Radio.

No wonder so many in the US are getting so fat. If people stopped eating out and weren't so in love with TV they could probably pay down their CC bills.
 

btgorman

Member
Jul 26, 2009
1,391
445
650
I think we all agree that something needs to be done about the high-interest rates.

What we likely don’t agree on is how to get them down. Some, however, are more cautious of the heavy hand of strict regulation via government (presumably because time and again unintended consequences have occurred).

Say we bring down interest rates to 15% max. Banks stop lending to people they deem risky (poor people). Government legislates that poor people not be discriminated against. Now everyone will lose out because risk incurred by poor people now has to be subsidized in some way.
 

Blood Borne

Member
Oct 30, 2017
1,034
969
235
Price control has never worked and will never work.

Why are leftists so committed to their garbage ideology when we have hard data that proves their ideology is evil and garbage.
 
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monegames

Member
Sep 26, 2014
2,071
1,526
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I think we all agree that something needs to be done about the high-interest rates.

What we likely don’t agree on is how to get them down. Some, however, are more cautious of the heavy hand of strict regulation via government (presumably because time and again unintended consequences have occurred).

Say we bring down interest rates to 15% max. Banks stop lending to people they deem risky (poor people). Government legislates that poor people not be discriminated against. Now everyone will lose out because risk incurred by poor people now has to be subsidized in some way.
you left out the part where the card companies will part out the debt of those risky/bad cards to make money and then the bubble will burst and the card companies will get bailed out because they are too big to fail.
 
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NickFire

Member
Mar 12, 2014
4,126
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I'm not dismissing this outright. Credit card companies prey on young adults and desperate people who don't know better in my opinion. The two people proposing this give me more pause than the actual idea.
 

Grinchy

Gold Member
Aug 3, 2010
21,608
4,191
775
In a cave outside of Whooville.
Damn, I finally want her to do something I agree with. I have one credit card with a 12.9% interest rate and another with a 23.9%. I won't even touch the 23.9% one anymore and want to cancel it but don't really want the credit hit for canceling.