A Criticism on over-reaching politicians

Recently, I’ve learned that the government is getting involved more deeply in financial regulation. Now, I’m all for leveling the playing field.

My issue is this, as it pertains to payday loans. They want to install “common sense” rules.

CRL president Michael Calhoun says that “A 36 percent cap on annual interest for consumer credit is a quick, common-sense way to restore protections that have been severely compromised in the consumer credit market. It would cost taxpayers nothing and plug a $5 billion hole in the wallets of working families.”

If this stuff is common sense, then why do we need a rule for it? I guess what he’s saying is that all the people that use payday loans do NOT have any common sense?

I think this is a clear example of economic paternalism.

by admin

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