Ranking Member Tim Scott (R-S.C.) recently criticized his Democratic colleagues for not taking responsibility for the repercussions of President Biden’s economic policies. During a Senate Committee on Banking, Housing, and Urban Affairs hearing, Scott pointed to the Biden administration's attempts to target standard payment incentives rather than reducing the burdensome regulatory agenda that has increased costs for consumers nationwide.
Last month, Scott introduced a Congressional Review Act (CRA) resolution to overturn the Consumer Financial Protection Bureau’s (CFPB) rule capping credit card late penalties. He argued that this rule would decrease the availability of credit card products for those who need them most, raise rates for many borrowers who maintain a balance but pay on time, and increase the likelihood of late payments across the board.
Scott stated in his opening remarks, "At last week’s hearing, we heard from my colleagues on the other side of the aisle that the high prices Americans are paying...are the result of 'greedflation' and 'shrinkflation.' And today, it’s a similar story. This time, the 'boogeyman' is so-called 'junk fees'—and these fees are to blame for the obvious economic pain Americans are feeling."
He further added that there is no shortage of finger-pointing for what he terms as "Brokenomics," referring to Biden's economic policies. According to him, instead of accepting responsibility for unchecked spending and increased regulation across the economy, Democrats and the Biden administration have chosen to deflect blame.
Scott also criticized efforts to label additional costs for legitimate products and services as "junk" or "excessive" in an attempt to villainize American businesses. He emphasized that such political games reduce access to credit and limit economic opportunities for those who need them most.
He concluded by expressing hope that there would be discussions about providing solutions to financial hardships facing Americans rather than focusing on one-size-fits-all products.