Consumer Credit, Social Security and Swine Flu
The House of Representatives votes to limit credit card fees and interest rates.
President Obama endorses raising Social Security taxes.
Vice President Biden advises Americans not to fly in airplanes or take the subway because of concerns over swine flu.
For more news, listen to the LibertyWeek podcast here.
1. CONSUMER
The House of Representatives votes to limit credit card fees and interest rates.
CEI Expert Available to Comment: Director of the Center for Investors and Entrepreneurs John Berlau on why limiting access to credit won’t help consumers:
“The goal of simplifying disclosure for consumers in credit card marketing, as professed by President Obama and members of Congress, is one that I share. Unfortunately, however, the so-called “credit card bill of rights” passed by the U.S. House of Representatives today goes beyond disclosure and imposes paternalism that limits consumers’ choices as well as sound risk-based pricing practices by banks that issue credit cards.”
2. FINANCE
President Obama endorses raising Social Security taxes.
CEI Expert Available to Comment: Editorial Director Ivan Osorio on how we can fix the credit crisis and fix Social Security at the same time:
“The lessons from Chile’s [social security] reforms are relevant to Americans, now that President Obama seems willing to tackle Social Security reform. Moreover, the Chilean reform has special value given the current need to unleash capital. [Economist Hernán] Büchi points out that Chile’s reform ‘helped create a substantial private capital market.’ Money previously cycled through government agencies became available for private investment, providing entrepreneurs with needed capital and pensioners with better returns. As the Obama administration and Congress struggle to address America’s credit crisis, they should take the Chilean experience into consideration.”
3. HEALTH
Vice President Biden advises Americans not to fly in airplanes or take the subway because of concerns over swine flu.
CEI Expert Available to Comment: Senior Fellow Iain Murray on the VP’s counterproductive statements:
“The air travel industry is suffering right now as a result of the economic crisis. This irresponsible statement by the Vice President not only amounts to unwarranted scare-mongering, but is a slap in the face to struggling airlines. We need to be encouraging travel, not discouraging it.”
Listen to LibertyWeek, the CEI podcast, here.