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Wednesday, October 5, 2011

Heat on Banks for Debt-Card Charges

“The banking industry on Tuesday defended a controversial new fee on debit cards as some Democrats called on consumers to abandon financial institutions that impose the charge…. Earlier this week, President Obama criticized the move as a way for banks to pad their profits at the expense of consumers. The American Bankers Association, a trade group, fired back Tuesday, accusing Washington of attempting to control private-sector prices.” (Washington Post)

When government controls one price (debit-card fees to retailers) the cost will appear elsewhere (debit-card fees for consumers).

FEE Timely Classic
“What Price Control Really Means” by Lawrence W. Reed