“Those that manage their credit well will in some degree subsidize those that have credit problems"

The hard paternalist do not deny themselves. As soon as a small minority fails to manage their lives, the imprudent; regardless of it is about sex, alcohol, drugs, dropping out of schools it is those that can handle their lives, the prudent get hit. It seems that the 90/10 rule is universal.

The hard paternalist legislator refuses to address the issue at source i.e. address the issue of lack of skills and adequate behavior. They instead punish the hard working and prudent by tougher rules and restrictions making life more difficult and more expensive. Not only that the bill for these further restrictions as well as the bill for bailing out the imprudent is burdening the prudent and the careful.

in a just society the bill for these costs in form of higher taxes, higher interest rates, higher fees and more restrictions should fall more havely on those causing it. In a paternalist society the prudent get hit, time after time.

Från NY Times: Overhaul Likely for Credit Cards

Banks are expected to look at reviving annual fees,
curtailing cash-back and other rewards programs and charging interest
immediately on a purchase instead of allowing a grace period of weeks,
according to bank officials and trade groups.

“It will be a different business,” said Edward L. Yingling, the
chief executive of the American Bankers Association, which has been
lobbying Congress for more lenient legislation on behalf of the
nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.” [min kursiv]

 Thanksto

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