SEN BERNIE SANDERS: We need to cap credit card interest rates at 10%, Trump is right

We unrecorded successful a federation of unprecedented wealthiness and income inequality — wherever a fistful of billionaires are getting overmuch richer portion the moving people falls further and further behind.

Just since Election Day, portion millions of Americans are struggling to spend housing, food, energy and healthcare, the 3 wealthiest radical successful America person go implicit $625 cardinal richer and are present collectively worth $1.3 trillion.  Meanwhile, arsenic a effect of a rigged governmental system, billionaires present wage a little effectual taxation complaint than the mean motortruck driver, teacher oregon nurse.

At the aforesaid time, Wall Street has ne'er been much consolidated and almighty than it is today. Incredibly, conscionable 4 Wall Street firms present negociate astir $38 trillion successful assets — much than 120% of our yearly GDP — and are large shareholders successful implicit 95% of S&P 500 companies. Further, conscionable 5 monolithic fiscal institutions led by JPMorgan Chase, Bank of America, American Express, Citigroup and Capitol One present relationship for astir 70% of each recognition paper transactions and conscionable 2 elephantine recognition paper networks (Visa and Mastercard) process good implicit 80% of recognition paper transactions.  

With that tremendous attraction of ownership, Wall Street has unthinkable interaction implicit the prices, involvement rates and fees we wage and the well-being of workers.

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Vermont Sen. Bernie Sanders and President Donald Trump recovered communal crushed connected capping recognition paper rates. (Valerie Plesch/Bloomberg via Getty Images; Kevin Dietsch/Getty Images )

Within that reality, President Donald Trump went to Davos, Switzerland, connected Jan. 21, to talk astir his alleged "affordability agenda." Really?  Is determination anyone near successful America who does not recognize that Trump’s interest astir "affordability" is thing much than a flailing effort to enactment up his rapidly declining canvass numbers?

Remember: This is simply a president who gave a front-row spot astatine his inauguration to Elon Musk, Jeff Bezos, and Mark Zuckerberg and who filled his furniture with much billionaires than immoderate medication successful American history.

This is simply a president who gave a trillion dollars successful taxation breaks to the apical 1%, portion throwing 15 cardinal people off of healthcare and did thing to forestall healthcare premiums from doubling, connected average, for 20 cardinal Americans.

This is simply a president who is moving with Elon Musk and the different Big Tech billionaires to propulsion AI and robotics connected the American radical which volition effect successful the nonaccomplishment of tens of millions of decent paying jobs.

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But, I person to admit, determination is 1 contented that Trump has identified that does marque sense. He is close erstwhile helium says that big banks are ripping disconnected the American radical with outrageously precocious recognition paper involvement rates.

In 2024, recognition paper companies raked successful much than $190 billion from involvement and fees charging obscenely precocious involvement rates, portion bombarding Americans with astir 3 cardinal solicitations.  Today, arsenic a effect of their efforts to addict Americans into purchasing their high-interest plastic, Americans are drowning in a grounds $1.23 trillion in recognition paper debt.

Despite the information that large banks tin get wealth at less than 4% interest from the Federal Reserve, the mean involvement complaint consumers are forced to wage for recognition cards is nearly 24 percent. Yes. 24%.

In different words, portion working-class Americans wage unconscionably precocious involvement rates, Wall Street banks and their executives marque retired similar bandits.

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When large banks complaint 24% oregon 30% involvement connected recognition cards, they are not engaged successful the concern of "making recognition available." They are progressive successful extortion and indebtedness sharking — squeezing moving families who are already stretched to the breaking point. And that should not beryllium acceptable successful the United States of America.

So, what bash we bash astir it?

Trump has projected to headdress recognition paper involvement rates astatine 10%. That is simply a bully idea. The occupation is that his connection would lone past for 1 twelvemonth and, successful galore instances, would extremity up costing consumers adjacent much than they are paying close now.

Today, galore large banks already lure radical into signing up for their recognition cards with introductory rates of 0% lone to jack those rates up — sometimes to 36% — erstwhile the teaser play expires.  In different words, what Trump is proposing is thing much than a bait and switch.  

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If we are superior astir helping moving families, we request thing existent — not different scam.

That is wherefore I introduced bipartisan legislation to headdress recognition paper involvement rates astatine 10% for astatine slightest 5 years. After that, I judge we should determination toward a imperishable headdress of nary much than 15% — akin to the long-standing statutory headdress that recognition unions person operated nether since 1980.

Surprise, surprise. The billionaires connected Wall Street and organizations representing the fiscal services manufacture similar the American Bankers Association don’t similar this thought (you tin work their afloat connection here).

Jamie Dimon, the CEO of JPMorgan Chase, who we each cognize stays up nights worrying astir the needs of moving families, has travel retired powerfully against this bill.  I wonderment why?  Could it person thing to bash with the information that past year, Dimon made $770 million in compensation portion the slope helium runs made $57 cardinal successful profits charging Americans involvement rates arsenic precocious arsenic 30%?

In different words, portion working-class Americans wage unconscionably precocious involvement rates, Wall Street banks and their executives marque retired similar bandits.

Mr. Dimon claims my bipartisan measure would restrict entree to recognition for low-income consumers. He has it backwards. This measure would restrict JPMorgan Chase and different fiscal behemoths from charging working-class Americans predatory recognition paper involvement rates that trap them into a vicious rhythm of debt.

Researchers astatine Vanderbilt University person estimated that my authorities would prevention the American people $100 cardinal a year in involvement payments oregon astir $899 a year.

How could this authorities payment moving families?

Let maine springiness you 1 example.

A 28% involvement complaint connected a recognition paper equilibrium of $5,000 tin outgo a user arsenic overmuch arsenic $11,000 successful involvement and instrumentality up to 24 years to wage off.  With a 10% recognition paper involvement complaint cap, that user would prevention much than $7,200 successful interest. The slope would inactive beryllium capable to marque implicit $3,700 successful nett disconnected that consumer. It conscionable wouldn’t beryllium capable to gouge them.

Let’s beryllium clear: Charging outrageously precocious involvement rates is not a fiscal service. It is usury — a signifier condemned by each large religion connected earth.

In "The Divine Comedy," Dante reserved a peculiar spot successful the Seventh Circle of Hell for radical who charged usurious involvement rates.  Today, we don’t request the hellfire and the pitchforks, we don’t request the rivers of boiling blood, but we bash request a nationalist usury instrumentality that caps involvement rates connected recognition cards astatine 10%.

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This is not a extremist idea. Polling suggests that it is enormously popular. The American radical — Democrats, Republicans and Independents agree: Credit paper companies are ripping america off. It has got to stop.

But, I person to admit, determination is 1 contented that Trump has identified that does marque sense. He is close erstwhile helium says that big banks are ripping disconnected the American radical with outrageously precocious recognition paper involvement rates.

This is besides a substance of economical justice.

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When Wall Street’s greed and recklessness brought the system to the verge of illness successful 2008 causing millions of Americans to suffer their homes, jobs and beingness savings, the taxpayers came to the rescue. The Federal Reserve gave these immense banks trillions of dollars successful exigency loans astatine virtually zero interest.  We bailed retired the banks. 

Now it’s clip for Congress to basal with moving families, extremity Wall Street greed and walk authorities that caps recognition paper involvement rates astatine 10%.  

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