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It's easier to make economic theories that fit science fiction rather than real life. The Vimes boots problem has already been solved by financing. Services lik
by Aunche 4y ago
It's easier to make economic theories that fit science fiction rather than real life. The Vimes boots problem has already been solved by financing. Services like Affirm would allow Sam Vimes to pay the $50 boots in 4 biweekly installments of $12.50. If the theory were correct, then buy-now-pay-later programs would help alleviate poverty, but what we see instead is that it worsens it by enabling consumerist purchases.
- p0pcult 4y agoWho qualifies for zero interest financing?
- king-geedorah 4y agoExactly, the interest rate on affirm is pretty high starting at 10%
- Aunche 4y agoBuy-now-pay-later unicorns are funded by VC funny money. They care more about growth than actually trying to turn a profit. You can get approved even with zero credit history.
- deleted 4y ago[deleted]
- mattnewton 4y agoAffirm is pretty new, doesn't give zero interest to everyone or support all purchases. Credit cards and payday loans support all purchases and actually exacerbate this issue by extracting money from people. It makes sense after all, they are a service that has to make money and if rich people don't need their service, where is the money going to come from? Affirm could work if it was not trying to make a profit (maybe off VC funds), but it is difficult for me to understand how it will solve this issue and be profitable.