Sanders and Ocasio-Cortez want to deny credit cards to poor people with their demand for price controls on interest rates

If Bernie Sanders and Alexandria Ocasio-Cortez get their way, Americnas will literally start getting Venezuela on the installment plan.  The socialists taking over the Democratic Party's base have learned nothing from the starvation Venezuelans are enduring and want to take America down the same path by demanding price controls.  The reason there are shortages of food, medicine, toilet paper, and almost everything else in Venezuela is because first Chávez and then Maduro enforced price controls on producers of most things, and it soon became impossible to provide goods and services and stay in business.  Venezuelans are fleeing price controls and streaming into neighboring Colombia and Brazil by the millions because those nations, which rely on the price mechanism, have no such shortages.

Now Bernie Sanders and Alexandria Ocasio-Cortez want to bring the same sort of shortages to the United States, one product at a time, starting with price controls on credit card interest rates:

The completely predictable outcome of price controls on credit cards would be poor and even middle-income people losing their access to credit cards.  While 15% interest rates sound like "a lot" to Ocasio-Cortez, she has no idea of the cost of credit card delinquencies.  When people borrow money by charging a purchase on a credit card, it is an unsecured loan, and a certain percentage of users will default.  Thus, credit card companies charge higher rates of interest to people with few or no assets, who are therefore less likely to be able to pay for the charges they put on their credit cards.

When Bernie Sanders honeymooned in the USSR, he must have seen the lines to buy essentials like meat that were in short supply precisely because there was no price mechanism in place to allocate the supply and to incentivize the production of more meat.

Image credit: YouTube screen grab.

If Bernie Sanders and Alexandria Ocasio-Cortez get their way, Americnas will literally start getting Venezuela on the installment plan.  The socialists taking over the Democratic Party's base have learned nothing from the starvation Venezuelans are enduring and want to take America down the same path by demanding price controls.  The reason there are shortages of food, medicine, toilet paper, and almost everything else in Venezuela is because first Chávez and then Maduro enforced price controls on producers of most things, and it soon became impossible to provide goods and services and stay in business.  Venezuelans are fleeing price controls and streaming into neighboring Colombia and Brazil by the millions because those nations, which rely on the price mechanism, have no such shortages.

Now Bernie Sanders and Alexandria Ocasio-Cortez want to bring the same sort of shortages to the United States, one product at a time, starting with price controls on credit card interest rates:

The completely predictable outcome of price controls on credit cards would be poor and even middle-income people losing their access to credit cards.  While 15% interest rates sound like "a lot" to Ocasio-Cortez, she has no idea of the cost of credit card delinquencies.  When people borrow money by charging a purchase on a credit card, it is an unsecured loan, and a certain percentage of users will default.  Thus, credit card companies charge higher rates of interest to people with few or no assets, who are therefore less likely to be able to pay for the charges they put on their credit cards.

When Bernie Sanders honeymooned in the USSR, he must have seen the lines to buy essentials like meat that were in short supply precisely because there was no price mechanism in place to allocate the supply and to incentivize the production of more meat.

Image credit: YouTube screen grab.