Comment of the Day
March 4, 2009 | Uncategorized | Comments (0)We need counter-legislation that would invalidate state usury laws as a violation of the fundamental right of consumers and businesses to engage in mutually-agreeable transactions as long as no deception is involved. Such freedom of commerce is a basic right which should have been established in 1776.
Usury laws, based on a complete lack of faith in the free market and the absolutely fallacious notion that a loan with a relatively high annual-percentage-rate means the consumer is being taken advantage of, effectively prohibit loan products which are not only useful but necessary for many people. They eliminate loans from the marketplace by requiring that they be offered for less than the cost of issuing them and are simply counter-productive, driving people to less desirable alternatives.
The people who would utilize these loans, and those who would offer them without deception, should not be denied their basic rights because some people are irresponsible in their use of loans. The government can help such people directly with credit counseling, debt consolidation or other assistance, without trampling on what should be the unalienable right of consumers and businesses to engage in honest commerce.
Up with freedom and down with paternalism.
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