Consumer Credit in America: Past, Present, and Future

In September 2016, in conjunction with Law & Contemporary Problems at Duke University School of Law, we organized a symposium on Consumer Credit in America. We sought to assess the state of consumer credit in America — to review and examine its recent history, to consider arguments for and against regulation, and to discuss the potential for future innovation. This is the introduction to the volume of articles coming out of that symposium

Bursting the Auto Loan Bubble in the Wake of COVID-19

Before the COVID-19 pandemic, auto loans outstanding in the United States had soared to record highs. The boom in lending spanned new and used cars and traditional and subprime loans. With loan delinquencies also hitting new highs almost every quarter, predictions that the auto lending market could burst soon abounded. When the economy came to a grinding halt and unemployment skyrocketed in the wake of the pandemic, auto lenders knew they were facing a crisis. Throughout 2020, auto lenders granted more payment forbearances to consumers, while slashing interest rates on new loans. Auto manufacturers similarly made promises to buyers, such as the ability to return new cars for up to a year upon job loss. Combined with the CARES Act’s relief rebates and moratoria, the bottom did not fall out of the auto loan market. These measures, however, are temporary. The pandemic alone will not reduce people’s need for cars, but it will burst the auto loan bubble. The economic fallout will require interventions in the auto sale and loan markets, which presents a moment to transform America’s car economy. This symposium Essay details a range of financial and related measures that can be implemented in the near future to shift auto financing away from promoting economically unequal and environmentally unfriendly use and access to automobiles, and, more broadly, to shift the United States away from prioritizing automobiles as the primary means of personal transportation

Consumer Credit in America: Past, Present, and Future

In September 2016, in conjunction with Law & Contemporary Problems at Duke University School of Law, we organized a symposium on Consumer Credit in America. We sought to assess the state of consumer credit in America — to review and examine its recent history, to consider arguments for and against regulation, and to discuss the potential for future innovation. This is the introduction to the volume of articles coming out of that symposium

Utilizing Behavioral Insights (Without Romance): an Inquiry into the Choice Architecture of Public Decision-Making

Behavioral economics has been employed in a number of policy applications over the last decade. From energy requirements to tax compliance to consumer finance, policymakers are increasingly operating under the assumption that people consistently fail to make rational choices. While the benefit of this policy trend remains an open debate, behavioral economists have long neglected a complementary examination of public decision-makers themselves. Comparison of two public agencies influenced by behavioral economics, the U.S. Consumer Financial Protection Bureau and U.K. Behavioural Insights Team, demonstrates how different institutions create divergent policy outcomes across the two agencies in a way that cannot be accounted for without incorporating public choice theory. I argue that improvement of private choice architecture must be accompanied by careful understanding of the public choice architecture in which policies are rendered if behavioral economics is to be a successful foundation for welfare-improving policies

Cybersecurity Oversight Liability

A changing cybersecurity environment now poses a significant corporate-governance challenge. Although some cybersecurity data breaches may be inevitable, courts now increasingly consider when a corporation\u27s officers and directors may be held liable on theories that they acted in bad faith and failed to adequately oversee the corporation\u27s affairs. This short essay reviews recent derivative decisions and encourages corporate boards to recognize that in an environment filled with increasing threats, a reasonable response will require devoting real resources and attention to cybersecurity issues

\u3ci\u3eAmEx\u3c/i\u3e and Post-Cartesian Antitrust

I. Introduction II. Situating American Express ... A. Different Sides of the American Express Opinion ... 1. Two-Sided Markets ... 2. The American Express Opinion ... B. The Real Issue Is Messy, Not Two-Sided, Markets … C. The Many Messes of Modern Markets III. Competition in Messy Markets ... A. Simple Competition in Simple Markets ... B. More Complex Competition in Messier Markets ... C. American Express: The Competition Is in the Pudding IV. The Many Sides of AmEx’s Rightness ... A. A Burden Best Born by Plaintiffs ... B. Economic Theory as a Question of Law or of Fact? V. Conclusio

United States of America as the Global Steward

The principle of subsidiarity states that local communities are best equipped to govern most of their affairs. In an increasingly connected world, this idea gets contested frequently. Since World War II, the world has experienced relative peace due to U.S. precedence. Today, we see U.S. leadership challenged by global players like China, which is doing so in a manner that prioritizes their people and goals. In order to maintain relevance, the United States must revisit trade policy, monetary policy, fiscal policy, and national security policy