Credit Cards for Young People

[fclbrokle]

The recent congressional legislation on credit cards (expected to be signed by President Obama, including a totally unrelated measure to allow concealed handguns in national parks) limits advertising that credit card companies can do towards young people. It would require, for anyone under 21, either a parent cosigner or demonstration of

Comments

[hahafaha]

So, a very interesting argument I have heard about drinking ages being lowered is this: many people will have had several years (maybe, like, 5) worth of driving experience by the time they are 21. However, those few who have never had any drinking experience and who decide to try it at 21 will not have the sufficient understanding of the effects. They will drink a pint, not notice any immediate effects, decide that it's safe to drive home, and 30 minutes later get into a car accident.

In a way, this is similar. Sure, we don't want people drinking because it's bad for them, but mostly, it's bad for other people. If there's one thing that the economic crisis has shown, it is that people spending money that they don't have (and have no plausible chance at ever getting) is supremely bad for other people, and that the market doesn't do a good enough job of internalizing that cost to society.

But there's the other similarity to the drinking age, and that is that people will have had experience with something else before they are 21, and that is spending money. And the thing is, spending cash is very different than using a credit card. Cash is tangible. You can't bounce cash. You can't go above a limit. You have it or you don't, and when you don't, you only cause problems for yourself, not others. So the result is that if you don't allow credit cards before 18, then people who have had many years worth of spending experience will suddenly assume that it's the exact same thing, and go crazy.

As far as requiring a parent to cosign before 21, I agree with something you mentioned above that pushing the legal definition of "full adult" higher is a bad idea.

So, I guess, in summary, I agree :-)

[fclbrokle]

There's a group of college presidents arguing for lowering the drinking age. It's called The Amethyst Initiative, and, to be honest, I see their points---as someone who doesn't drink at all.

[meep]

Way back in the day before they decided to federalize the drinking age in the U.S., some states had graduated laws, where you could drink weak beer from age 18 - 21 (or something), and then could buy the hard stuff thereafter.

I would be cool with limiting the under 18 crowd to Bud Lite, for example. You can still get drunk on that stuff, but to get to that point (for those of Irish extraction at any rate) you're going to be rushing to the toilet a lot. Some people get drunk much easier, of course.

[fclbrokle]

Yeah, that's sensible.