March Price Control Madness

Ryan Bourne and Sophia Bagley

The Economic Consequences of Credit Card Interest Rate Caps

On March 7, Representatives Alexandria Ocasio-Cortez and Anna Paulina Luna introduced a bill to cap credit card interest rates at 10 percent. Bernie Sanders and Josh Hawley are backing a Senate version. Strange bedfellows, same bad idea.

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This is a classic price control — and a radical one. The national average interest rate on credit cards is around 22 percent.