Donald Trump has made a lot of broken promises: that coronavirus cases would be virtually wiped out by the beginning of March 2020; that he would erase the entire federal debt in eight years; that he’d release his tax returns; that he’d be faithful to his wives. But as the respected-by-conservatives Wall Street Journal editorial board pointed out in a Sunday op/ed, the Republican presidential candidate and convicted fraudster has been making a lot of promises the US economy simply cannot keep.
The latest promise–on top of promising no taxes on tips, no taxes on overtime pay, apparently rescinding the cap on deductions for state and local taxes implemented during his single term, and paying for everyone’s IVF, among other things–is to implement a cap on credit card interest for balances at 10%.
Not only would this cost banks a lot of revenue, it also reduces credit opportunities for high-risk borrowers. Such a move would effectively shut the short-term loan industry, and would effectively punish consumers with good credit histories. And as the Journal’s board points out, it’s not kosher, capitalism-wise: it’s less than the 15% temporary cap once proposed by both Bernie Sanders and Alexandria Oscasio-Cortez. “It’s bad enough to have a Democratic Party that ignores economics. What’s the point of a Republican Party that follows suit?”