US Senator Tim Scott, a Republican of South Carolina, speaks during a US Senate Committee on banking, … more
This week, President Trump signed two The decisions of Congress Congress Congress analyze the regulations to protect Bad Biden’s financial protection. The signature covers the efforts led by Senate President Tim Scott (R-SC) and the president of House Financial Services French Hill (R-AR).
CFPB will not be able to issue “virtually similar“Rules in the future, and this trio (and their staff) is worth believing in the delivery of victory to millions of Americans.
The first CRA analysis cancels the CFPB overdose rule, a regulation that would impose prices ceiling on overdue fees. As Senator Scott pointed out in March, prices would have reduced a service millions of people found valuable and holding more people from the banking sector.
Price ceilings prevent companies from gaining the profit they need to provide customer products and services. As a result, companies stop providing these services and/or charging other prices. Either way, they reduce people’s ability to make their own choices.
Price ceilings are also antithetical because they abolish the incentive for other companies to provide similar services. This feature also reduces consumer choices, but also suppresses employment opportunities. It makes the free business system less productive and beneficial.
Government regulations take over markets
The CFPB rule was a classic case of bureaucrats who decided that the prices were “very high” and then applying a “solution” that would have exacerbated the situation. In a short time, politicians would probably have rotated the results as “market failure”, justifying more regulation, although the government would prevent the market from working in the first place.
The second CRA analysis canceled a rule that would have expanded the CFPB supervisory authority to digital consumer payments. (Typically, this was the Definition of larger participants in a market for the rule of the general purpose digital consumers’ request, a little bottle.)
Undoubtedly, this rule was a little more than the office effort regulate Companies like Google and Apple, because, well, that’s what regulators do. They regulate. And when they don’t have enough to adjust, they find more to adjust. Independently, the proposed rule without question failed justify the new arrangement or even identify the specific risks raised by consumers from popular digital payment applications.
Limited government protects consumers
The rule does not detect any harm to consumers, much less market failure. Indeed, the universe of digital payments was a success story and the rule essentially said: “Congratulations on your successful business businesses, now we will make your life miserable.”
This is not the way a free business economy factoryIt’s how a government kills one.
Even fans of the limited government admit that the government has a legal role in alleviating fraud and restoring true market failures. But the arrangement for the sake of regulation is counterproductive and the existing framework is already overcoming policing fraud and consumer damage.
Obviously, the United States has reached a point of regulatory saturation and financial markets are just an excellent example.
The financial regulations are complex and bulky. They maintain the career of some of the best lawyers and representatives of interest in the nation. Among other things, the Federal Trade Committee, the Capital Market Committee, the US Federal Bank, the Office of the Currency Inspector, the Federal Deposit Insurance Company (FDIC), the National Credit Union Administration, the Federal Protection Office and the Consumer Protection Office and the Financial Protection Office.
Regulations have become counterproductive
The complex economic regulatory framework is not a success. Protects established businesses, demonstrate instabilityand inflates the cost. The unnecessary adjustment layers should be removed and regulatory functions must be unified. Financial enterprises do not need to be regulated by twelve federal services.
These changes would improve the competitive environment. They would allow both financial and non -financial enterprises to provide more services to consumers and extend opportunities for people to improve (directly and indirectly).
And if Congress members want and Trump’s administration support “Workers, business Americans cultivating our economy,” will dramatically shrink the existing regulatory system and go even further. Recognizing that freedom and free business are not the enemy, they will apply the same principles to their other economic policies.
They will avoid policies – including invoices, commercial barriers, price controls on medicinal products and complex tax rules – that give bureaucrats more power in people’s lives.
The type and level of participation in the government in Americans’ lives are currently going well beyond the creation of the rules of the game. In many cases, the government is usurping the market and replacing the crisis of private citizens with that of uninformed bureaucrats.
Our elected officials have increasingly created the kind of paternalistic system used by imperial rulers to gain power over humans and this tendency must be reversed. Such a system has no place in a democracy based on the authorities of the limited government and the free business, and the sooner Congress and Administration will get rid of it, the better the Americans will be.
