CFIF often highlights how the Biden Administration's bizarre decision to resurrect failed Title II "…
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Image of the Day: U.S. Internet Speeds Skyrocketed After Ending Failed Title II "Net Neutrality" Experiment

CFIF often highlights how the Biden Administration's bizarre decision to resurrect failed Title II "Net Neutrality" internet regulation, which caused private broadband investment to decline for the first time ever outside of a recession during its brief experiment at the end of the Obama Administration, is a terrible idea that will only punish consumers if allowed to take effect.

Here's what happened after that brief experiment was repealed under the Trump Administration and Federal Communications Commission (FCC) Chairman Ajit Pai - internet speeds skyrocketed despite late-night comedians' and left-wing activists' warnings that the internet was doomed:

[caption id="" align="aligncenter" width="515"] Internet Speeds Post-"Net Neutrality"[/caption]

 …[more]

April 19, 2024 • 09:51 AM

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The Biden Administration Takes a Swipe at Credit Card Industry Print
By Stephen Moore
Tuesday, March 26 2024
Someone needs to tell the Biden regulators: If three major rivals compete, that's good. If four do, that's even better for consumers.

The Biden administration regulators see a monopoly boogeyman behind the curtain of nearly every business merger and acquisition  from airlines to cellphones to chicken producers.

Now they're trying to stop Capital One from acquiring the credit card company Discover.

That's a bizarre cease-and-desist order, because this acquisition by Capital One would INCREASE rather than inhibit competition in an industry that processes two-thirds of retail store and online transactions worth $5 trillion each year. Americans love swiping and tapping for their shopping.

To suggest that the acquisition of two companies that control less than 10% of the market is anti-competitive is a proposition that borders on the absurd.

For years the Federal Trade Commission and retailers have argued falsely that there isn't competition in the credit card market. There are dozens of credit cards issued by banks and retailers  and Americans have freedom to choose the best deal.

Visa, Mastercard and American Express have grabbed more than 90% of the market  not because of a lack of competition but mainly because consumers like the convenience that almost all stores accept these cards, and millions of shoppers like the reward points for free flights, vacation deals and cash-back options.

If Discover and Capital One combine forces, we could see the emergence of a fourth major player on the scene. Someone needs to tell the Biden regulators: If three major rivals compete, that's good. If four do, that's even better for consumers.

The merger is likely to mean fiercer competition  which means LOWER fees and interest charges. Ironically, in other lawsuits against he credit card industry, the FTC alleges credit card companies like Visa and Mastercard are colluding to keep fees high. In this one, the regulators are blocking a merger that will help nudge the interchange fees and interest payments down.

This isn't just conjecture. Discover already charges LOWER credit card processing fees than Visa, Mastercard and American Express. With financial support from Capital One, it can make the investments needed to expand its market share, which would mean merchants would have opportunities to negotiate down interchange fees with card providers. Similarly, the rivalry will impel card issuers to offer consumers new and better benefits. Why would anyone oppose that?

Alas, it's not just the Biden hyper-regulators who are trying to block this marriage. Sens. Josh Hawley (R-Mo.), a conservative, and Elizabeth Warren (D-Mass.), a liberal who hates big business, are loud skeptics as well.

They should listen to Jamie Dimon, CEO of JPMorgan Chase, a direct rival of Capital One, who says, "Companies should be allowed to do and innovate and grow and merge ... If that's how they think they can best compete with JPMorgan, you should let them."

Amen. Government never reduces prices. The free enterprise system does.


Stephen Moore is a visiting fellow at the Heritage Foundation and a senior economic advisor to Donald Trump. His latest book is: "Govzilla: How the Relentless Growth of Government Is Devouring Our Economy."

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