*gasp* Class War!

[zsquirrelboy]

Ladies and Gentlemen, the senator-elect from Virginia:
The most important--and unfortunately the least debated--issue in politics today is our society's steady drift toward a class-based system, the likes of which we have not seen since the 19th century. America's top tier has grown infinitely richer and more removed over the past 25 years. It is

Comments

[harimad]

The really short summary is: credit card companies* lobbied Congress to relieve the companies of the predictable results of their own business strategy.

The slightly longer version:
1. Credit card companies expanded their definition of credit-worthy to include those who aren't, really. The new section was poorer and overwhelmingly unsophisticated and unknowledgable.
2. Credit card companies put a lot of money and effort into encouraging this new section of their target audience to use credit cards.
3. The new section did so. Credit card comapanies happy.
4. The new section - predictably - started falling behind in payments.
5. The new section declared bankruptcy, which relieves them of the obligation to pay said debts.
5. Credit card companies, instead of accepting the financial results of their predictably risky new strategy, successfully lobbied Congress to change the law so that the new section can no longer declare bankruptcy "easily."

I disapprove STRONGLY. The credit card companies took advantage of those who are both ignorant and less powerful, then wanted Congress to get them out of the mess they made for themselves.

* Banks also, but primarily credit card companies.

[zsquirrelboy]

Lack of effective bankruptcy relief also has the potential to drive people (especially on the lower end) out of the formal economy, with all of the attendant problems that would engender.