By Tyler Curtis
Ultimately, interest rate caps would cost Americans access to a convenient and reliable source of credit. Instead of saving them money, a rate cap would push consumers into worse credit options.
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Interest Rate Caps Won’t Solve America’s Debt Problem. Here’s What Willmises.org/power-market/interest-rate-caps-wont-solve-americas-debt-problem-heres-what-will?utm_source=MI+Subscriptions&utm_campaign=b2eb49de9f-EMAIL_CAMPAIGN_2024_02_29_06_22_COPY_01&utm_medium=email&utm_term=0_-0aec14e5f3-230095776
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39 sats \ 8 replies \ @kepford 19 May
Caps and floors don't work. Socialism and central planning have not been properly understood by most people. If they were... these ideas would die.
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40 sats \ 6 replies \ @Undisciplined OP 19 May
Almost everyone’s education is downstream of central planning, so there’s not much incentive in the system to communicate this message.
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23 sats \ 5 replies \ @kepford 19 May
Indeed, it is built into the system to NOT understand.
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6 sats \ 4 replies \ @Rothbardian_fanatic 19 May
Why would they want to understand something that would dis-empower themselves? It is only the misundestanding economics that allows them to do what they are doing. Of course, as stated above, the whole education system is captured, too.
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45 sats \ 3 replies \ @kepford 20 May
Its not captured. It was designed to provide the state with good loyal citizens and reliable workers. To soveriegn individuals. Its working as designed.
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80 sats \ 2 replies \ @Rothbardian_fanatic 20 May
Yes, I guess you are right. Public schooling was designed from the start to degrade the thinking powers of the populace. The people before public education and Horace Mann were very literate in several languages, like Greek and Latin and could critically think circles around us.
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29 sats \ 0 replies \ @Rothbardian_fanatic 19 May
The problem is that the "socialists" or as I call them the progressive/lefty/collectivist/Marxist/socialist/communist/murderers are now in charge of the education system and much of the state apparatus at all the federal, state and local levels. I guess we just have to wait for each level to collapse because they are using socialist thinking for policy decisions.
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22 sats \ 2 replies \ @Rothbardian_fanatic 19 May
Oh, back to ye ol' command economy, are we? They never learn, do they? It has never worked and will never work. Setting prices by central command brought the Soviet Union to their knees and it looks like China is going the same way. Do we need to join them?
Putting caps and floors on the interest rate of credit cards will just get the very same results as caps and floors on any other price. The only difference is this is about the price of money, which is usually determined, in a laissiz-faire market, by the time-preference of all the individuals in society. Thus, determining the clearing price of savings vs. borrowings (the supply and demand of money). Will they ever learn?
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20 sats \ 1 reply \ @Undisciplined OP 19 May
Didn't the Soviets try not having any prices at first?
IIRC, that failed miserably and swiftly, so they started copying the prices from neighboring market economies. That let them gradually descend into poverty, rather than just rapidly collapse.
I remember there being some Soviet quote from Stalin or some other leader about how they would ultimately have to allow at least one small market economy to exist, just so they could use the price information. Weird admission.
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39 sats \ 0 replies \ @Rothbardian_fanatic 20 May
Yes, the Bolsheviks tried it at first, until Lenin came to some senses (not many, just some).
Actually, it was Lenin and his New Economic Policy (NEP) of 1921. Where he freed up the markets to cause the economy to stabilize. Mises did a great hatchet job on socialism and the pricing impossibility in command economies called the economic calculation problem in one of his books and Hayek finished the job in his Pretense of Knowledge speech.
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