by Ronald J. Mann
PUBLISHER: Cambridge University Press
ISBN: 0521866111
PRICE: $65.00
PAGES: 250 pp
PUBLICATION DATE: September 2006
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Why This Book?
During the last three decades, the credit card has transformed the American economy. It has revolutionized the daily mechanisms for payment and borrowing, contributing to the consumerist ethos that distinguishes American culture and supports the health of our economy.
It is a major cause of the rise in overindebtedness that brings despair to concerned policymakers. Perhaps most importantly, the economic power of those that profit from credit cards fostered the recent retrenchment of our bankruptcy laws.
Yet, aside from works criticizing the obvious connection between credit cards and overindebtedness, there is no serious overarching analysis of the credit card phenomenon. We know next to nothing about some of the foundational questions. Exactly how does credit card use relate to bankruptcy filings? Why are credit cards so much more common here than they are in our trading partners like Japan and the United Kingdom ? Why do credit card issuers continue to issue cards to customers that are such bad credit risks? What specifically can we do to solve these problems? How can we limit profligate borrowing without undermining the consumer confidence and spending on which our economic health depends? Can an effective response be politically realistic?
