As someone with a liberal-libertarian bent, I generally think that people who get themselves into trouble with credit cards and easy loans should bear the burden of paying off their debts. However, companies that hand out easy credit to just about anyone should also be held responsible for being sloppy with their business.
So, there needs to be some common sense when we talk about bankruptcy law. People who have made a mistake, or experienced health problems or the loss of a job shouldn't be punished forever and credit companies shouldn't be made to hold the entire bag. The credit card companies are not hurting. They are among the most profitable businesses in the world. And the already charge rates that verge on usury.
But now, the Congress has done heir bidding and the president has paid off some big contributors by signing a bankruptcy law that strengthens the credit cartel's grip on America's wallets.
Many debtors will have to work out repayment plans instead of having their obligations erased in bankruptcy court under the law, which will go into effect in six months. The legislation won final congressional approval last week after being touted for eight years by banks and credit card firms.
The measure would require people with incomes above a certain level to pay some or all of their credit-card charges, medical bills, and other obligations under a court-ordered bankruptcy plan.
Bush said the new law makes the financial system fairer for debtors and creditors.
''The act of Congress I sign today will protect those who legitimately need help," Bush said.
Those who fought the bill said the change will fall especially hard on low-income workers, single mothers, minorities, and the elderly and will remove a safety net for those who have lost their jobs or face hefty medical bills.
I don't often buy the standard argument that all things automatically impact the poor and minorities greater than everybody else, but here it is appropriate. And by the way, Mr. President, credit write-offs are not paid by the rest of us. It is, or at least was, a cost of doing business for the credit cartel. Now, it's found money.
Here's what I propose: since the law goes into effect in six months, I say every person in the country who has some kind of debt declare bankruptcy now en masse. This way everyone can start fresh, creditor and debtor alike.
From then on, we all know the rules and don't have to work with those that have been changed for the benefit of the government's sugar daddies.
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