A stark reality defines our nation: immense wealth concentrated in the hands of a few, while working families struggle with the rising cost of basic necessities. Since the last election, a mere three individuals have amassed over $625 billion, reaching a collective worth of $1.3 trillion – a staggering figure as millions grapple with affording housing, food, and healthcare.
This isn’t simply about wealth disparity; it’s about a system tilted against the average American. Billionaires now enjoy a lower effective tax rate than truck drivers, teachers, and nurses, a consequence of a political landscape heavily influenced by powerful financial interests. Wall Street’s consolidation is equally alarming, with just four firms controlling over 120% of our annual GDP.
The grip of these financial giants extends to everyday life. A handful of institutions dominate credit card transactions, wielding immense power over prices, interest rates, and the financial well-being of countless Americans. This concentration of power allows for practices that exploit those already struggling to make ends meet.
Recently, amidst this backdrop, discussions emerged regarding “affordability.” But for many, this feels disingenuous, a political maneuver to deflect from deeper systemic issues. The reality is a history of policies favoring the wealthy, exemplified by massive tax breaks for the top 1% and cuts to vital healthcare programs.
However, a spotlight has been cast on one specific area of exploitation: credit card interest rates. In 2024 alone, credit card companies profited over $190 billion from interest and fees, fueled by relentless marketing and a system designed to trap consumers in debt. Americans are now burdened with a record $1.23 trillion in credit card debt.
The disparity is breathtaking. While banks borrow money at less than 4% interest, consumers are routinely charged nearly 24%. This isn’t lending; it’s a predatory practice, a form of financial extortion targeting those least able to afford it. It’s a system that thrives on the desperation of working families.
A proposed solution – capping credit card interest rates at 10% – offers a potential path forward. But beware of superficial fixes. Current proposals risk being temporary or even counterproductive, employing the same “bait and switch” tactics used by credit card companies themselves.
Legislation has been introduced to cap rates at 10% for at least five years, with a long-term goal of 15%, mirroring the standards already upheld by credit unions. Predictably, this proposal faces fierce opposition from Wall Street and its lobbying groups, who prioritize profits over the financial security of everyday Americans.
The argument that this will restrict credit access is a deliberate misdirection. This legislation aims to prevent predatory lending, not limit access to credit. Researchers estimate it could save Americans $100 billion annually – roughly $899 per person. Imagine the impact on families struggling to stay afloat.
Consider a $5,000 credit card balance. At 28% interest, a consumer could pay $11,000 in interest and spend 24 years paying it off. A 10% cap would save over $7,200 in interest, while still allowing the bank to profit over $3,700. It’s about fairness, not eliminating profit.
Charging exorbitant interest rates isn’t a financial service; it’s usury – a practice historically condemned by moral and religious principles. Dante Alighieri, in “The Divine Comedy,” reserved a place in hell for those who engaged in such practices. A national usury law is not just a policy proposal; it’s a moral imperative.
Public opinion overwhelmingly supports this change. Democrats, Republicans, and Independents alike recognize that credit card companies are exploiting consumers. The time for action is now. This isn’t just about economics; it’s about economic justice.
When Wall Street’s recklessness brought the economy to its knees in 2008, taxpayers bailed out the banks with trillions of dollars in emergency loans. Now, it’s time for Congress to stand with working families, curb Wall Street’s greed, and enact legislation that caps credit card interest rates at 10%.
