Why Credit Card Companies are so Mean

[crazy canuck]

I am not that comfortable with limiting freedom.

I really dont understand the argument that limiting freedom is always bad.  In lots of ways unlimited freedom is the worst possible world.  Surely there is reasonable middle ground.  If food x is known to be unhealthy what is the possible downside of regulating its sale.

I suppose what they might actually do is put a tax on unhealthy food (like they have enormous ones on cigarettes..but I think those are State Taxes and vary by State and not Federal ones) and use that to fund the health care system.  They are already talking about that for soft drinks.  In some way or another regulation of what we eat is coming.

Taxation has always been a method governments have to discourage some behaviour and encourage others.  Another method is simply to ban certain ingredients that are known to be unhealthy or hazardous to health.  Another is to force full disclosure of ingredients and health risks if the product is consumed.  All these options limit freedom but they are not necessarily evil.

[Valmy]

CC makes a good point - Canucks aren't more overweight and unhealthy than Yanks, in spite of a lack of fear of health care costs.

Perhaps I am making the incorrect assumption that most people have the forsight to consider health care costs when making lifestyle choices.

[Ed Anger]

CC hates trans fats. He is why my KFC tastes inferior now. 

[alfred russel]

I just hope that if Democrats roll out a soda tax, Barney Frank makes the announcement.

[Malthus]

CC makes a good point - Canucks aren't more overweight and unhealthy than Yanks, in spite of a lack of fear of health care costs.

Perhaps I am making the incorrect assumption that most people have the forsight to consider health care costs when making lifestyle choices.

When people make the decision to eat a salad instead of a bag of cheetos for lunch, I'd say that 99% are thinking about how fat their butt would look in jeans if they ate the junk and only 1% about the financial costs of Type 2 Diabeties. 

[Neil]

And the government should do exactly that.  Anything else is totalitarian crap.

Then the health care system would break down and not be sustainable.

Everywhere else in the civilized world manages just fine, thank you very much.  Canada has the same culture regarding food as the US, and yet socialized medicine works here.

[crazy canuck]

CC makes a good point - Canucks aren't more overweight and unhealthy than Yanks, in spite of a lack of fear of health care costs.

Perhaps I am making the incorrect assumption that most people have the forsight to consider health care costs when making lifestyle choices.

You are missing the point.  No sane person would choose to be unhealthy.  Fear of health care costs has nothing to do with their decisions.  Unfortunately the reality for many Americans is that they do have that fear which may in and of itself result in poorer health outcomes.

[Valmy]

When people make the decision to eat a salad instead of a bag of cheetos for lunch, I'd say that 99% are thinking about how fat their butt would look in jeans if they ate the junk and only 1% about the financial costs of Type 2 Diabeties. 

Probably true.

Oh well in any case fatty foods are about to get alot more pricey.

[Valmy]

Everywhere else in the civilized world manages just fine, thank you very much.  Canada has the same culture regarding food as the US, and yet socialized medicine works here.

Only because the US indirectly subsidizes it through our higher costs.

Or so I hear

[crazy canuck]

CC hates trans fats. He is why my KFC tastes inferior now. 

I apologize.

[Caliga]

Oh well in any case fatty foods are about to get alot more pricey.

[Valmy]

My prediction is that the proposed tax on soft drinks is a harbinger on taxes on all 'unhealthy' foods

But that is hardly a bold prediction.

[Caliga]

My prediction is that the proposed tax on soft drinks is a harbinger on taxes on all 'unhealthy' foods

But that is hardly a bold prediction.

Oh, I don't care about soft drinks.  I drink diet soda only and just as often I drink water or tea.  BUT DON'T YOU DARE  TOUCH MY SAUSAGE GRAVY. 

edit: I fail at comprehending your post. 

[Faeelin]

They really aren't. There are a lot of institutions offering credit cards.

With the caveat I know little about this topic...

If this is so, then what's the incentive for the companies to all pursue a policy that actively screws consumers? Somebody should have broken with the pack, offered more equitable terms, and then made a killing by grabbing an enormous market share, no?

[alfred russel]

They really aren't. There are a lot of institutions offering credit cards.

With the caveat I know little about this topic...

If this is so, then what's the incentive for the companies to all pursue a policy that actively screws consumers? Somebody should have broken with the pack, offered more equitable terms, and then made a killing by grabbing an enormous market share, no?

A few reasons:

1) current terms banking hasn't been the most profitable industry recently. Apparently giving people credit without any security really is risky. Lowering profit margins doesn't seem very attractive at the moment.
2) the subset of people that don't pay their card off regularly aren't necessarily focused on the impact of minimum payments to their personal cash flows
3) because market share is competitive and the industry largeley unregulated, it makes sense to grab market share with very good offers that may be marginally profitable, and then jack up the rates or ratchet down the terms. Sure you will lose customers doing that, but some will stay and be your cash cows.