Profiting from the Poor

Who doesn’t like making a few bucks from the poor? The poor are every bit as important to the economy as human suffering was to Mother Teresa and original sin is to Christianity. After all, if there were no cash-strapped masses, pawn shops, sub-prime lenders and entire brigades of charitable deed-doers would be out of business. Entire industries built upon serving the destitute would face bankruptcy.

Microfinancing for low-income entrepreneurs, once considered a brilliant move by social thinkers and economists, is now taking a hit for being too successful, says the Wall Street Journal. What, there aren’t enough poor folks to go around these days?

 

 

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One comment on “Profiting from the Poor

  1. Steve Cotton says:

    Once upon a time in America, there were many poor and minority people who could not afford to buy a house. The good people in Congress and successive Administrations called the evil banks bad names. “You are racists,” they said. The evil banks whined: “Loans in low-income areas are high risk.” The good politicians responded: “You are not good like us. Everyone should have a chance to ride the gravy train.” So, the evil banks gave in. They loaned money to all sorts of noble poor people. Then the noble poor people could not pay back the loans. The evil banks began forclosing. The good politicians responded: “You evil bankers. How could you be make such risky loans? You have hurt the noble poor people.” The evil bankers could only stammer at the brilliance and goodness of the politicians.
    The moral? Taking moral advice from any politician is like asking teenage boys for driving lessons.

    Like

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