Paying Cash

Democratic Assemblyman Rusty Areias argues weakly against deregulation of retail credit interest rates (“Sky’s-the-Limit Interest Isn’t Creditable,” Op-Ed Page, Aug. 3).

He fears retailers would “reap untold millions” from consumers if retailers are allowed to charge true market rates for installment debt. Areias obviously doesn’t mind if untold millions of dollars are reaped from cash-payers buying goods and services at free-market prices.

The assemblyman also favors government regulation because some low-income consumers use credit cards to purchase appliances, clothing and furniture. (How many poor people have credit cards anyway?) Here again, no sympathy or government favors for the millions of us cash-paying peasants who acquire our “household necessities” through hard work, thrift, and good old-fashioned bargain-hunting.

I have yet to be convinced why the state needs to artificially induce installment debt when inflation is below 5%, or why California needs to “protect” consumers who voluntarily hock themselves into slavery. Until then I propose that state legislators get out of the consumer credit business and stop trying to fix something that isn’t broken.

JOSEPH D. PHILLIPS

Montrose