Universal Credit Card Access
June 1st, 2009Congress recently passed legislation that will put severe restrictions on the credit card industry and the fees they charge. Some have called this unfortunate, as the bill will likely lead to a severe constriction of credit — especially for those who need it most. But in truth it’s actually quite fortunate — as it will provide the federal government with an opportunity to take over yet another aspect of our economic lives, by providing the people with yet another entitlement: credit.
The Credit Card Accountability, Responsibility, and Disclosure Act signed into law by President Obama will reign in credit card companies, by forbidding such practices as “double-cycle billing,” retroactive rate increases, and sundry fees. By doing so, though, it will also remove the profitability of serving subprime borrowers, which will not only cause a large swath of these people to lose their access to credit, but will also force many issuers out of business — possibly affecting millions of other borrowers.
We simply cannot allow this kind of credit hindrance. Just as the federal government must be able to spend beyond their means, so must individual citizens. Just as everyone has a fundamental and unconditional right to health care services, so must everyone have the same exact right to credit.
And just as Congress will soon allow the uninsured to participate in the same health insurance program hereto available only to the members of Congress, so can it allow the uncredited to participate in the Congressional Federal Credit Union, which until now has been available only to the members of the House and their families.
When implemented, every citizen (or resident — legal or otherwise) who, for whatever reason, is unable to obtain a credit card through a private issuer, will receive a government-issued credit card. The card will have no fees and will come with the same unlimited credit line available to Congress; and with the same liberal repayment terms.
Of course, you may ask: how will we pay for this new entitlement when the government is already buried underneath a mountain of debt?
The answer is simple: we’ll pay for it the same exact way we’ll pay for the new universal health care system we cannot afford, by raising taxes. In fact, we can use the same exact carbon tax that’ll fund the heath entitlement. All we have to do is double it.
So, instead of consumers paying an extra $3,000 per year in additional energy costs, they’ll pay an extra $6,000. What’s the big deal? And if, for some reason, it is a big deal for someone, no worries — all they have to do is put this expense on their brand new government credit card.
What could go wrong?
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© Copyright 2009 by Colin Cohen. All Rights Reserved.
