The Biden administration recently announced a slew of regulatory efforts which they claim will combat “junk fees” charged to consumers. Ultimately, these actions are just government price-setting by a different name. And the results will be just as bad as they have always proven to be.
What is a junk fee? That is a good question. According to the administration, it is “any unnecessary or hidden fees from banks, hotels and other service providers.” What constitutes unnecessary you might ask? Well, anything that the White House decides it simply don’t like.
In response to inflation, President Nixon had issued price and wage controls in 1971 and again in 1973. The results were disastrous and deeply unpopular.
While the administration is quick to point out which fees are illegitimate for businesses, it is at the same time seemingly oblivious to the fees which it charges to taxpaying Americans. Can we expect President Biden to proclaim IRS late filing fees, expedited passport and visa processing fees, or the bevy of other fees the government charges, as junk fees? It’s not likely.
