Obama Can Back Our Credit Cards, Too!!!

A particularly disturbing aspect of the Left is that they’re neither particularly intelligent nor particularly well-educated on esoteric subjects like economics. So, pieces like this are increasingly prevalent and concerning (as well as sounding like they’re coming from petulent teenagers*): Why Your Next Credit Card Could Be Backed by Obama:

Since apparently everything in America is going into the toilet except the public’s faith in Barack Obama, it seems that the way to fix everything in America is to entrust it to Barack Obama. The issues on the table for greater government involvement include: student lending, the car companies, car warranties, pensions, health care, banks, etc — the list goes on. I mean, really, what’s the White House going to back next, your credit card? Maybe, says Slate‘s Chris Beam.

Beam explains that an Obama card wouldn’t be so bizarre in the eyes of other countries. Germany, France, India and Iceland (yikes!) issue cards from state-owned banks. And there’s an economic argument, too: If there are quasi-government programs to back house purchases, like Fannie Mae and Freddie Mac, why not have a quasi-government program back credit card debt, of which the average American holds $8700? Here’s Beam:

Creating a government-sponsored lending agency–a Fannie Mae for credit cards–would rein the whole system in. For one thing, it would offer lower rates than the usual 18 percent. The government could charge, say, 8 percent interest and still turn a profit. It would include none of the usual hidden fees or surprise charges.

I simply don’t have the heart to delve into why this is so bad economically, nor to point out what should be obvious at this point–that Fannie Mae/Freddie Mac are at the heart of the current economic crisis. And to really ruin your next meal, there’s this bit:

Another thing the government can do by backing your credit cards is direct part of your charges to programs of your choice. Here’s Beam again:

Every time you buy something, a small percentage would go to wind-farm construction, say, or clean-coal research, or school computers. The government could also do something creative like dipping into the Social Security money pool. If it lent that money to creditworthy Americans, it could make a killing.

One can just imagine the hidden glee that those on the Left must feel at finally being in power and being able to propose such profoundly offensive notions (offensive to anyone with a smattering of objectivity, that is). Their belief in the primacy of consciousness lets them believe that hope can actually overcome reality–and it shows.

*No offense to teenagers intended.

Speak Your Mind