economy
January 15, 2026
Trump's embraces failed left-wing, credit card interest caps
President Donald Trump is veering sharply left on several key economic policies. Alarmed by voter frustration over affordability, he appears to be panicking. In doing so, he is making a fundamental mistake: embracing price controls. History shows that price fixing does not reduce costs. It makes economic problems worse.
TL;DR
- President Trump is proposing significant economic policy shifts, including price controls and interest rate caps.
- A proposed one-year cap of 10% on credit card interest rates is a key policy, though its implementation is unclear and faces legal challenges.
- Critics argue price fixing, such as interest rate caps, historically makes economic problems worse, leading to shortages and reduced access to credit.
- Capping credit card interest rates could price millions of lower-income households out of the market, forcing them to seek riskier lending options.
- The author asserts that free-market capitalism and economic growth, not government controls, are the true solutions for affordability.
- Past instances of price controls, like those under President Nixon, resulted in shortages and economic stagnation.
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