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Two complicating aspects I just randomly thought up: - the money lending business may not like the fact that their clients are becoming self sufficient and may
by bonoboTP 6y ago
Two complicating aspects I just randomly thought up:
- the money lending business may not like the fact that their clients are becoming self sufficient and may increase the interest rate to punish such attempts
- crabs in a bucket phenomenon. Not every culture is like the US. In many places it's considered a bad thing to stick out from your environment, family, neighborhood etc. and in poverty you need the goodwill of those people. If you go the risky route, people may hate you, envy you, think you are crazy, selfish, etc.
- taffer 6y agoIf the money lending business had the power to unilaterally raise the interest rate, wouldn't it have done so already?
- bonoboTP 6y agoThey need to keep it in the range that doesn't fully destroy people but also doesn't let them escape. If you run a usury business, you want your clients to be spending a good chunk of the money on stuff like alcohol and cigarettes, so they keep coming back and it remains stable. Once your clients escape their trap, they may qualify for better credit options.