“Misguided price controls”
June 14, 2009 | Wisconsin, industry, positive media coverage, regulation | Comments (0)That’s economist Mark Schug discussing rate cap legislation introduced in Wisconsin. From the oped:
While some legislators backing this “reform” have good intentions, it belies a certain economic illiteracy that they can’t see what the unintended consequences of a rate cap would be. The bill’s central regulation is a ban on interest and fees that, combined, total less than two pennies for every dollar borrowed in connection with a short-term loan. This is an outright price control that will ultimately hurt the consumers it is supposed to protect.
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