Using heart not head, major flaw in payday lending debate

October 23, 2017

By Bill Britt
Alabama Political Reporter

A report by Jonathan Lee, writing for the Mises Institute located in Auburn, lays bare the flawed economic thinking of those who oppose small, short-term consumer lenders, such as payday and title loans.

“[P]olicymakers are thinking with their hearts while sitting in their air-conditioned offices, away from the facts and any form of interaction with the real world of short-term loans,” Lee states.

Using words like “predatory lending” and “price-gouging,” left-leaning special interests, and even the Consumer Financial Protection Bureau founded under the guidance of Democrat United States Senator from Massachusetts Elizabeth Warren, ignore economic realism while promoting a nanny-state wisdom that undercuts the basic understanding of market-based capitalism.

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