Resolution Opposing Government Price Controls and Supporting Free Market Principles

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Policy Status

  • Type: Model Resolution
  • Status: Draft
  • Date Introduced: December 3, 2025

Task Forces

  • Commerce, Insurance and Economic Development

    • Tags

  • SNPS 2025

    • Summary

    This resolution strongly supports free market principles by opposing government-imposed price controls, particularly interest rate caps on credit products. Such controls distort market dynamics by distorting how credit is priced and allocated and limit consumer access to credit, especially for those with non-prime credit. As a result, millions of consumers could face reduced access to credit or be shut out entirely, prompting them to turn to more expensive, less regulated alternatives. Free-market credit policies should be driven by voluntary agreements between informed parties, not restricted by government mandates that stifle innovation, competition, and access. 
    Draft

    Resolution Opposing Government Price Controls and Supporting Free Market Principles

    WHEREAS, the United States has long recognized the importance of free markets, limited government, and the rights of individuals to engage in voluntary exchange; and 

    WHEREAS, government-imposed price controls—such as interest rate caps on consumer credit—represent a distortion of the free market that undermines competition, innovation, and the ability of lenders to price risk appropriately; and 

    WHEREAS, interest rates are a market-determined mechanism for allocating capital, compensating for risk, and responding to supply and demand; interference through arbitrary caps disrupts this process and penalizes both consumers and providers; and 

    WHEREAS, lawmakers should oppose legislative proposals that would limit or make it economically unfeasible for lenders to offer credit to a broad swath of consumers, especially those with non-prime or limited credit histories; and 

    WHEREAS, proposals imposing government-mandated interest rate caps would severely restrict access to credit for millions of consumers, resulting in reduced credit lines, fewer approvals, and less access for subprime cardholders; and 

    WHEREAS, consumers unable to obtain mainstream credit may be forced into costlier or less-regulated financial alternatives, thus exacerbating financial hardships and exposing them to less transparent products and; 

    WHEREAS, the role of government is to uphold the rule of law, ensure transparency, and protect against fraud—not distort markets, micromanage prices or outcomes in voluntary financial transactions; and 

    WHEREAS, in a free society, credit should be extended through mutual agreement between lender and borrower based on risk, capacity, and consent—not dictated by bureaucratic ceilings or political pressure; 

    THEREFORE BE IT RESOLVED, that the [insert state] Legislature affirms the value of free enterprise, market-based pricing, and voluntary exchange as the foundation of American prosperity and consumer choice by: 

    1. Urging Congress and federal regulators to reject all proposals that would impose uniform or arbitrary price controls and caps on credit products; and 
    2. Encouraging financial innovation, competition, and private-sector solutions to expand access to responsible credit without resorting to government interference.