>The default rate on these is around 20%. Then we need higher taxes to fund loan insurance and legally enforced interest rates for loans. Wealth and poverty in

>The default rate on these is around 20%. Then we need higher taxes to fund loan insurance and legally enforced interest rates for loans. Wealth and poverty in the USA is an allocation problem: every billionaire represents a public policy failure. If you're concerned about either "people might take advantage of the system" or "what if they spend the money on stupid things", my preemptive answer is: the people who become billionaires do so by taking advantage of the system and if we can't trust people to spend money rationally, what does that imply about capitalism as a whole?