Telling us our business
April 6, 2010 | Mississippi, industry, regulation | Comments (0)I love it when a university economist injects theory into the debate. Has this guy ever run a payday lending business, visited a store, seen the books of a company? From the op-ed in a Mississippi newspaper:
Industry advocates might argue that such “low” rates would make it impossible for any business to survive. Such a perspective, however, fails to recognize that changing the market will, in fact, change the opportunities and willingness of consumers to default, thereby reducing some of the need for the current higher interest rates. Furthermore, having so many payday lenders in Mississippi implies that many payday lenders have too few customers to operate efficiently, and such an arrangement makes as much sense as having a thousand farms of a hundred acres each in the Mississippi Delta — a waste of resources.
What is this guy talking about? He missed the day in economics class when they taught supply and demand.
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