Conclusion: Perceptions Matter

Craig McMahon ()
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Craig McMahon: Villanova University

Chapter Chapter 7 in Taming the Fringe, 2021, pp 213-217 from Palgrave Macmillan

Abstract: Abstract Affordable credit remains out of reach for many low-income households. Industry supporters have long argued that small loans serve borrowers overlooked by other financial institutions. Still, reformers have not let them cast off the predatory loan shark moniker. The core issue is little debated: poor people face a near-permanent shortage of money. The motivations to restrict the working poor’s access to high-cost credit have varied dramatically. Research reports and studies arrive at differing conclusions. Passionate spirits motivated a protective ethic. The entangled relationship between capitalism, poverty and the state’s response is complex. Since the private markets will continue to innovate, and the demand for loans will likely remain, applying some lessons from history can inform policymakers seeking economic fairness for the poor and vulnerable.

Keywords: Payday lending; Pawnbroker; Small loan policy; High cost credit; Financial inclusion (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psitcp:978-3-030-70615-9_7

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DOI: 10.1007/978-3-030-70615-9_7

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