Ban bears and payday lenders, but support keno?
June 27, 2008 | Ohio | Comments (4)According to the WSJ, “times are tough in Ohio. The state has lost 200,000 manufacturing jobs since 2000, home foreclosures are soaring, and real family income is lower now than in 2000.”
Yet, elected officials in Ohio have voted to put people out of work, are crafting legislation to ban bears in the workplace and are trying to legalize keno. Payday Pundit thinks they need a lesson on priorities.
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The supposed 6,000 jobs provided by payday lending outlets are not value added jobs. As if it bears repeating, payday loans and their accompanying interest rates and fees strip wealth from consumers in Ohio, rather than build it. The purchasing power of consumers dwindles when they are being taken advantage of by payday lenders and pay out more and more in interest and fees. The Ohio General Assembly did not vote to put people out of work, but simply to level the playing field and force payday lenders to operate in a competitive environment. Free market competition spurs growth and more jobs, doesn’t it?
John: I’ve never understood the argument that these jobs don’t help the economy. If someone borrows to keep their car running so they can get to work isn’t the economy (and the customer) better off?
Then where does the $15 per $100 fee go? It gets spent in Ohio for business services and salaries — which creates more jobs.
If the loan was an illegal off-shore internet payday lender, which is where the business will go if payday loans are banned, then you may have a case because the money has left the country. But with legal storefront operations this argument doesn’t hold water.
As for Governor Keno, his explanation of why keno is an expansion of gambling is amazing. Next he’ll ask what we mean by the word “is”.
I for one will be moving if I have to close my payday loan store and I will probably move to Texas. I have had it with Ohio and its politicians and their anti business policies. They just don’t get “it”
John:You dont have a clue about business,but im sure you mean well.The fact is on the average payday lenders profits are about 8% a year…THATS at 391% apr so imagine if you take away 70% of revinue which a 28% apr cap will do, get the picture?They are forcing an industry out of business and calling it regulation.THESE ARE SHORT TERM TWO WEEK LOANS APR SHOULDNT EVEN APPLY,This is unconstitutional and shouldnt have to go to the ballot.OHIO SHOULD BE SUED.