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Seems like banning credit card reward/loyalty programs would be a net societal good - they encourage overspending and make people feel like they are 'earning' by using credit. Further, the net result of them is to enable more carbon-emitting travel.

Unfortunately the credit lobby is too powerful in this country, so seems politically untenable.

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> and make people feel like they are 'earning' by using credit

But you are earning by using credit.

When I buy on credit I literally earn cash back. I also get additional consumer protections.

No scare quotes needed!

> they encourage overspending

Do we have evidence rewards increase total spending? I thought it was more about issuers fighting for wallet share. Not increasing spend.

I have personal anecdotal evidence. One friend will make increasingly frivolous purchases as they approach rewards thresholds. They ended up with 5-figure credit card debt and a net loss of funds because they considered rewards at time of purchase, but not the interest on the credit for not paying full statement balance.

I'd be curious to see a more formal academic analysis of this, however.

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