As I looked through the BBC news pages, this article caught my eye.
There are payday lenders on most High Streets, so is greater regulation a good thing for other High Street retailers or not?
For
Well, on a selfish level, there more disposable income our potential customers have in their hand, the more they have to spend in our shop. Providers of essential items of grocery or personal hygiene products will welcome our loyal customers being able to continue spending. In the UK we have little manufacturing industry, so a large part of our economy is driven by consumer spending. The local plus it may provide is jobs for a couple of local people and rent for what may be a local landlord.
Against
In terms of the greater good of our community, money leaving local people as high interest payments and arriving in the profits of international corporations does us little good at all.
It may be our staff that are borrowing in this way, which if used irresponsibly then can lead to longer-term financial woes. This could eventually lead to absenteeism or, inextreme cases, employee theft.
I am against the "Nanny state" and I think that people should be free to make their own decisions. There is obviously a market for payday lenders, as they have become hugely successful. This needs to be balanced with financial education (preferably in school.)
Not everything can be bought on the High Street - James Hunt: The Biography
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