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It is true that identity theft is a bad thing. It's unconnected to a different bad thing, which is people not paying what they owe. ...people (not you, I just
by fwn 8y ago
It is true that identity theft is a bad thing. It's unconnected to a different bad thing, which is people not paying what they owe.
...people (not you, I just think it's fitting) often think that being lax on credit is helping the poor or making the world a better place by some kind of self-enforced redistribution.
It is, however, far better to have strong contractual and property institutions while caring for those in need with well established legal and economic structures. (This could be a full welfare state, but could also be any other set of policies targeting the same problem.)
I have, for example, strong feelings about the idea that there are some loans you can't default on. But if that turns out to be a societal problem it needs to be solved there, not through a lack of enforcement for the few who leave the country.
- TeMPOraL 8y agoHere's the problem though: the money is there to push for strong contractual and property institutions, but there isn't much for adding the "caring for those in need" part. They should go in lockstep, but they don't. I agree with you wrt. how things should be, but I do empathize with people who use lax enforcement as a way to escape inhumane regulatory conditions.
- JetSpiegel 8y ago> ...people (not you, I just think it's fitting) often think that being lax on credit is helping the poor or making the world a better place by some kind of self-enforced redistribution. Is this risk not the reason interest is charged? If you want perfect enforcement of all loans, interest must go to 0, otherwise the interest is pure profit.