"Price controls on credit cards NEVER work. Nixon and Carter tried, it was a disaster. Capping rates at 10% may sound popular, but it risks cutting access to credit for millions of Americans who rely on it for emergencies. Price controls on credit cards NEVER work. Nixon and Carter tried, it was a disaster. Capping rates at 10% may sound popular, but it risks cutting access to credit for millions of Americans who rely on it for emergencies. pic.twitter.com/sTWVwrpBMR Stephen Moore (@StephenMoore) January 12, 2026"
"Varney began by asking, Is that a good idea? Moore replied, Okay, I want you to get a pad and pencil and write this down. Start with the first rule of economicsthe first rule of economics says wage and price controls are always, always, always a mistake. And by the way, the second rule of politics is politicians never learn the first rule. So you disagree with capping interest rates? What about that? Varney followed up."
Price controls on credit cards never work, with past efforts under Nixon and Carter described as disastrous. Capping interest rates at 10% could cut access to credit for millions who rely on cards for emergencies. Wage and price controls are characterized as always a mistake, and political actors often repeat the error. The credit-card market is competitive, with roughly 4,000 issuers and four major companies. Issuers must cover operating costs; cited figures show base interest near 4% with additional costs around 6 percentage points. Artificial caps would shift costs onto paying customers, increase defaults, reduce overall credit access, and prompted negative market reactions.
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