On Usury

Here is the latest anti-capitalist screed from the Sun. Those wicked Jews payday lenders are there again, fleecing the poor. Bastards! They should be forced to charge a reasonable rate of interest, or preferably none at all, or else be shut down and thrown in jail.

Of course, the poor will then not be able to get ANY loans, but c’mon, priorities!

As with the minimum wage debate, lazy liberal journalists think wealth just falls out of the sky and that our only concern is how to distribute it equally. They don’t think about consequences. The poor are, for obvious reasons, terrible credit risks. NOBODY is going to lend them squat, unless they can charge high rates of interest to cover the risk.

Does this suck for the poor? You betcha. But is the answer to cut off the few sources of ready cash they still have?

Maybe instead of destroying credit opportunities, the sages of Baltimore can start to think about expanding economic opportunities in the city, allowing the poor to stand on their own two feet. Hm, what could we do? Admirably, the Sun a month ago criticized Councilwoman Clarke’s proposal to raise the city min wage to $15, but they should read this businessman’s description of the tax and regulatory burden of doing business in Charm City. If businesses have such trouble getting started and expanding, there will be no jobs, and the poor will have no other choices.

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