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Friday, May 01, 2009

House Votes for More Credit Card Regulation

The costly regulation train continues to pick up speed in our nation’s capital.

While touting it as a pro-consumer measure, the U.S. House of Representatives passed a credit card regulation bill on April 30 that would have the government involved in dictating pricing for the industry. Price controls, of course, never work out well, taking a heavy toll in terms of investment, innovation and service. When it comes to credit cards specifically, this government intervention threatens to reduce access to credit for consumers and small businesses.

Not a good idea, especially in a bad economy with tight credit.

Take a look at how your representative voted, as reported by the Associated Press. The overall vote was 357-70, with the Democrats coming in at 252-1, and the Republicans at 105-69.

Special kudos to Stephanie Herseth Sandlin from South Dakota, who was the lone Democrat to vote “no.”

Raymond J. Keating
Chief Economist
Small Business & Entrepreneurship Council

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