The financial system as we know it is based on the saving and lending of money. Before the 80’s thrifty citizens deposited their money in a financial institution with an expectation that the interest they received, compounded, would at least keep up with inflation. The institution in turn lent the money with the expectation that the interest they could charge would pay the depositor and pay them for their trouble and risk. Savings would earn 4 – 6% and you could borrow for 8 – 12%. Eighties inflation discouraged both savers and borrowers by removing their profit motive.
Ever since, the interest rates for savings have gone down and interest rates on loans have increased. The system has tried to squeeze an ever larger profit from a dwindling supply thus effectively killing the market. Now savings earn 1% and credit cards cost 29% with ever increasing default rates. Someone got greedy.
National usury laws would help resolve the problem, making lending for more than a 10% annual interest rate illegal.
CD’s with their return pegged to the cost of living index would assure that savings would keep up with the inflation that the usury laws would discourage.