News – DC destroys the economy – then bans loans to the poor
As we know, we are just entering the second year of the terrible Joe Biden administration. Things are really bad.
But our national status just recently was the opposite of extremely horrible. Oh how quickly we fell. How? ‘Or’ What? Why?
Everything President Donald Trump’s good predecessor did – Biden undid and overthrew him.
Which is a shame. Because Trump has done us a LOT of good.
Trump has given the United States our best economy in generations.
Trump raised everyone’s salaries. For low-income Americans, it was their first increase in many decades.
Trump has made us a net oil exporter – in just over a month in office.
We’re giving you just a fraction of Trump’s presidential legacy – to remind everyone how much we’ve had him very recently.
Biden murdered our energy independence – day one.
The first of many attacks on our energy sector.
Which, of course, led to this.
And it’s not just gas prices that are setting obnoxious records.
All of the above – and other dumb Biden policies – have created a bit of a supply problem.
All of the above – and other stupid Biden policies – have created a small economic problem.
So with all this Biden economic horror in mind – why would Congress do this?
Biden has made the economy the worst it has been in many decades. And now his Democrats in Congress are seeking to ban loans to the poor. What the poor absolutely need – because Biden has made the economy the worst it has been in many decades.
“Payday loans” are so named – because poor people take out loans when they run out of money before payday. Like, say, when their car breaks down – and they have to run the car…to get to work to get paid on payday.
Rich people don’t need payday loans – because they have the money to cover things like that.
The poor used to get these loans from small community banks. But DC took care of it.
“Banks deemed too big are more than 30% larger than before the law was passed in 2010, and 80% larger than before the 2008 banking crisis. The six largest U.S. financial institutions now have assets some $10 trillion, or almost 60% of GDP; and they control almost 50% of all bank deposits.
“Meanwhile, their smaller competitors are struggling to survive. Community banks and credit unions are disappearing at the rate of one a day. Access to local banking services disappears with them.
“Local banking” – such as short-term loans and lines of credit for the poor.
Economics abhors a vacuum. DC having murdered a poor moneylender – another has arisen in his place. Born was the payday lender.
DC won’t let that either. They want to cap payday loan prices – but we know what that really means.
As basic economics and 10,000 years of human history tell us, price caps kill the capped item. The most famous of MANY examples?
“The era of price controls is best known for long lines at gas stations….
“At the time, ‘price controls were turning a minor adjustment into a major shortage,’ Thomas Sowell said.
If you can’t make a profit from something, you stop producing that something. Because human nature. Because duh.
Artificial price caps on payday loans – will make it nearly impossible to make a profit on payday loans. So no one will offer payday loans anymore. Because human nature. Because duh.
And the people hardest hit aren’t the payday lenders. Although it’s ridiculously, stupidly hard for them.
The hardest hit are the payday lenders. The poor who desperately need these short term loans.
Especially now – in the midst of Biden’s extremely terrible economy.
DC isn’t great? First, they prevent people from making money. Then they prevent people from borrowing money.
This is all very, very helpful.
Photo by GPA Photo Archive, Public Domain Mark 1.0.