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Per https://www.valuepenguin.com/average-credit-card-debt#income; https://www.valuepenguin.com/average-credit-card-debt#income... the lower income earners in th

Per https://www.valuepenguin.com/average-credit-card-debt#income; https://www.valuepenguin.com/average-credit-card-debt#income... the lower income earners in the US have almost 10% of their income in credit card debt. Per https://www.pewtrusts.org/en/research-and-analysis/fact-sheets/2016/01/payday-loan-facts-and-the-cfpbs-impact https://www.pewtrusts.org/en/research-and-analysis/fact-shee... 12 million people spend $9 billion in payday loan fees and people spend billions of dollars each year playing the lottery. Poor financial decisions and money management is definitely playing a role in this as well. We really need to include suggestions for adding programs and laws for encouraging saving, removing predatory lending, and incentivizing responsible spending in articles like these. There is too much focus on consumer spending and not enough on household stability and having money in the bank for emergencies.

mmirate 8y ago
> payday loan fees ... playing the lottery ... poor financial decisions and money management ... predatory lending ... consumer spending Those are all basically taxes on idiocy and innumeracy. Idiocy and innumeracy are arguably vices whose prevalence in society should be counteracted. In the absence of the abject and horrifying immorality/aggression/violence of state eugenics, isn't taxation the next most effective thing?
- netfire 8y ago
  Several states already ban payday loans and some don’t allow lotteries (let alone state sponsored lotteries that are used to fund things like education). Personally, I think setting an effective interest rate cap (including loan fees) at around 15-20% a year would be very effective at preventing the kind of lending that can lead someone to multiple years of high-interest debt repayment or eventual bankruptcy. More education in high school about how to manage your finances wisely could also prove beneficial.
  - mmirate 8y ago
    > beneficial. For certain people, in the short term, until their inherent stupidity allows them to commit further mistakes that actually impact others...

mmirate 8y ago

> payday loan fees ... playing the lottery ... poor financial decisions and money management ... predatory lending ... consumer spending Those are all basically taxes on idiocy and innumeracy. Idiocy and innumeracy are arguably vices whose prevalence in society should be counteracted. In the absence of the abject and horrifying immorality/aggression/violence of state eugenics, isn't taxation the next most effective thing?

netfire 8y ago
Several states already ban payday loans and some don’t allow lotteries (let alone state sponsored lotteries that are used to fund things like education). Personally, I think setting an effective interest rate cap (including loan fees) at around 15-20% a year would be very effective at preventing the kind of lending that can lead someone to multiple years of high-interest debt repayment or eventual bankruptcy. More education in high school about how to manage your finances wisely could also prove beneficial.
- mmirate 8y ago
  > beneficial. For certain people, in the short term, until their inherent stupidity allows them to commit further mistakes that actually impact others...