Because what sounds like "consumer protection" can actually limit opportunity, reduce access to credit, and harm the very people it's meant to help.

President Trump has proposed capping credit card interest rates at 10% to help Americans struggling with debt. At first glance, this idea seems compassionate and practical — but when you look closer, it reveals serious economic consequences that could make financial life harder for millions of people.

In this episode of The Way the World Works, we break down how credit cards actually work, why interest rates exist, and how government-mandated price caps interfere with incentives in the financial system. Using real-world examples, we explain why higher interest rates often make credit more accessible to young people, first-time borrowers, and those rebuilding their financial lives — and why artificially low rates could shut them out entirely.

If the goal is to help people build financial stability, is government price-setting really the answer?

• How credit cards and interest rates actually work

• Why interest rates act as incentives, not punishments

• How capping credit card interest could reduce access to credit

• Why "consumer protection" policies often have unintended consequences

• How market incentives help people build credit and financial independence

0:00 Why Credit Card Interest Matters
0:35 What It Means to Cap Interest Rates
1:54 How Credit Cards Work
3:32 Why Interest Rates Incentivize Responsibility
5:25 The Hidden Problem With Interest Rate Caps
7:34 Why Higher Rates Help New Borrowers
10:28 The Unseen Consequences of Government Intervention
13:14 Who Really Gets Hurt by a 10% Cap
14:45 Why the Market Incentives Matter

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