PayDay Lenders

Marie Morse, executive director HomesteadSC makes good points about PayDay lenders, but she is wrong for deny others the use of their services.

Her concern for the financial well being of individuals is laudable. The mistake she makes is assuming that all individuals need or want the help she and the organization she represents offer. In a free society, individuals make decisions and accept the consequences of the decision. Limiting the free market, voluntary interaction of private parties, is in fact limiting freedom.

HomesteadSC offers financial counseling to help people achieve a certain end. The means that HomesteadSC uses are paternalistic in nature. Concern and empathy for one another is a good thing, but limiting their freedom is not. The problem arises when she assume that all people want what HomesteadSC offers.

Ms. Morse goal is for people to make decisions that are financial sound. Good goal, but it ignores the reality that some people could care less about their credit worthiness. They value other things more highly and act accordingly.

Secondly, her opposition to PayDay lending is based on the assumption that she knows all the values, needs and desires for people that use PayDay lending. This is not possible. Contrary to her believe, PayDay lending does make sense to some and the service provided is valuable, but not to everyone. Just as her service makes sense to some people and not to others.

The goal of a free society is to allow individuals to make decisions, accept the consequences (be they good or bad) and not shift the responsibility for those decisions and consequences to other members of society.

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