Unfortunately, progressive policies are brought to the fore. The Democrats’ massive infrastructure spending bill is light on infrastructure and heavy on the top priorities of liberal climate change activists. The Biden administration’s budget includes massive tax increases. Prominent Senate progressives like Sen. Dick Durbin, D-Ill., And Bernie Sanders, I-Vt., Are pushing for important new regulations on credit cards and price controls.
Senator Kevin Cramer (R-ND), along with the rest of the Republican caucus, must continue to oppose these dangerous policies.
Let’s look at the effort to regulate your credit card. In 2011, a bipartisan coalition of senators failed to block similar debit card regulations. Sadly, these price controls, which were part of the disastrous 2010 Dodd-Frank Bill, became law and consumers lost out as big box stores took advantage of government-set price controls.
Consumers did not see the prices drop as promised. In fact, the Federal Reserve Bank of Richmond found that 77% of retailers had not lowered prices and 21% had increased their prices. Boston University found that low-income consumers were losing about $ 160 a year, and Americans without a bank account were increasing by about a million.
The Durbin Amendment was terrible for ordinary Americans. Giant retailers and a handful of progressive senators now want to apply those same regulations to credit cards.
A group of the country’s leading conservative organizations, led by Americans for Tax Reform, wrote a letter to the House Committee on Financial Services and the Senate Committee on Banking, Housing and Urban Affairs to oppose proposed credit card regulations. They wrote, “The expansion of the Durbin Amendment is of great concern and would directly harm consumers during the online and in-person payment process. Any extension of the Durbin Amendment to credit cards and the costs associated with such a policy will only serve to further limit consumers’ financial choices and could threaten $ 50 billion in rewards enjoyed by millions of consumers and retailers who use and accept reward credit cards.
While these proposed credit card regulations would be terrible for consumers, the current system is not perfect. For small traders, the payments market can be difficult to navigate. Payment options are changing rapidly, and retailers have access to more payment options than ever before. This increased competition means that transparency and education are essential for small retailers. According to a Mercator study, 77% of small businesses understand that accepting cash isn’t cheaper than accepting cards, but the industry can’t ignore about 1 in 4 small businesses that don’t see it. not that way. Banks, payment networks and merchant service providers need to partner with small businesses, so that they understand their options and make the best choice for them and their customers.
Fortunately, Senator Cramer can be a trusted voice in supporting hardworking Americans and against flawed government regulations and price controls. Along with other strong Tories, he should oppose Senator Durbin’s price controls and the entire progressive wishlist.
John Hinderaker is president of the Center of the American Experiment, a think tank that develops and delivers creative solutions that emphasize free enterprise, limited government, personal responsibility, and government accountability.
This letter does not necessarily reflect the opinion of the Forum editorial board or the property of the Forum.