tag:blogger.com,1999:blog-19712433.post6251926153119624307..comments2023-09-04T15:04:50.588+01:00Comments on disguised unemployment: This is why i gave up on development economicsNitinhttp://www.blogger.com/profile/03850679155748900374noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-19712433.post-65579085131816900752010-05-24T21:56:13.517+01:002010-05-24T21:56:13.517+01:00At the same time you don't want the poor at th...At the same time you don't want the poor at the mercy of loan sharks & the type of payday loan places that are now ubiquitous in low-income areas in the US. For all my free-market leanings, those businesses are just too much to swallow -- I think the negative externalities are sufficiently high that some regulation is called for.<br /><br />To my mind an ideal financial institution would combine microsavings, microcredit, & mini-venture capital. Literally a co-op bank or credit union type place, with seed money from development agencies & NGOs. Certainly it should aim to be profitable. But I do balk at 100% APR type interest rates, even if poor people are riskier investments.Wafahttps://www.blogger.com/profile/00576584961542210952noreply@blogger.com