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Are Payday Loans Consistent with a Free Market Society ?

This is a cleverly phrased question, that seems relatively pointless. As I see it 'consistent with a free market society' means little more than is there a buyer and is there a seller. To that question the answer is obviously yes.

I however choose to interpret the question as 'Are Payday loans consistent with society?' and to this I would have to say NO!

Payday loans are no more consistent with society than a loan shark lending money from the back room of Moes Tavern.

The only difference is the Payday loan people bought off the Federal Government via lobbyists, bribery, and legal manipulation instead of their Local and State Governments with envelopes full of unmarked bills.

It is true that the Payday loan people won't send someone out to break your legs if you don't pay up, but they don't need to. Bad check laws impose the threat of criminal prosecution, jail time, and a criminal records, to anyone who doesn't repay the loans.

There are so many things that would be consistent with a free market society that are prohibited and with good reason.

A poor person would be more likely to sell a kidney, yet we prohibit the buying and selling of organs. A poor mother with a house full of children, and no food to feed them would be more likely to allow her daughter to engage in prostitution, and there will always be men willing to pay for sex, this too would be consistent with a free market society.

A drug addict will steal and sell anything to buy more drugs. At least 99% criminal activity is consistent with a free market society. But so what, having a buyer and seller doesn't make it right.

Hiring illegal aliens as domestic staff is consistent with a free market society. So too is dumping your trash in a ditch instead of hiring a trash company.

I personally don't feel that the litmus test for Payday loans, or any program that exploits the poor and less fortunate in our society should be if they are consistent with the free market.

Our society has consistently protected and defended out poor and less fortunate from exploitation, and in that since payday loans are no more consistent that drug dealing or child porn.

JS

swaney3@gmail.com

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