Already a subscriber? - Login here
Not yet a subscriber? - Subscribe here

Browse by:



Displaying: 1-1 of 1 documents


1. Business Ethics Journal Review: Volume > 1 > Issue: 4
Matt Zwolinski Are Usurious? Another New Argument For the Prohibition of High Interest Loans?
abstract | view |  rights & permissions | cited by
Robert Mayer argues that certain kinds of high-interest payday loans should be legally prohibited. His reasoning is that such lending practices compel more solvent borrowers to cross-subsidize less solvent ones, and thus involve a kind of negative externality. But even if such crosssubsidization exists, I argue, this does not necessarily provide a ground for legal prohibition. Such behavior might be a necessary component of a competitive market that provides opportunities for mutually beneficial transactions to willing customers. And the alternative of a governmentmandated interest rate faces severe problems of its own.