118. While your economic logic makes sense, it's a question of the size of each effect
Just because banks charge the worst credit risks 30% interest rates, doesn't mean that they wouldn't find it profitable to still extend them credit and only charge 20% interest rates. And while rates for people with good credit would go up, they may only go up a very small amount. The problem is that economic theory tells us what effects should happen but it's not so great at predicting the size of these effects. For that you actually need data and more serious statistical analysis.
Your logic is certainly reason to be wary of interest rate ceilings but not a reason to reject the idea entirely.
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