Stimulus Proposal: $10,000 In Credit Card Interest Relief During Coronavirus Pandemic
By Shahar Ziv
May 20, 2020
Professor Norman Silber and his co-author, Jeff Sovern, examine new ideas for Congress to help stimulate the economy during the current COVID-19 pandemic.
The U.S. economy is continuing to roil from the coronavirus pandemic. While the official April unemployment rate of 14.7 percent marked the highest level since the Great Depression, it also understated the true economic devastation being inflicted across America. With Congress deadlocked on when to pass the next relief bill, let alone what provisions it should include, now is an opportune time to consider creative solutions to help Americans weather the extended Covid-19 crisis. One novel proposal by two law professors would provide government subsidies for consumer credit card interest payments.
The brainchild of Norman Silber, a senior research scholar at Yale Law School and professor at Hofstra University’s Maurice A. Deane School of Law, and Jeff Sovern, professor at St. John’s University School of Law, the proposal would have the federal government subsidize interest payments on consumer credit card charges while also capping interest rates and allowing consumers to fully defer minimum payments. These steps would help stem the impending credit crunch that has already started to hit many Americans and maintain an accessible lending mechanism readily available to 75 percent of Americans.
Read the full article on the Forbes website.