Americans are increasingly being economically pinched in our modern profit driven economy. Don’t get me mistaken, I believe the profit motive is a natural explanation to many troubles and that American capitalism has been a great engine that has lead our country to worldwide economic dominance over the past 100 years. Nothing is perfect, Quid Loan but the American model has been, in my judgment, as good as it gets. As we move away from an industrial base and towards a service based economy, and as farms and ranches consolidate and move into the hands of fewer but more reasonably strong people, and as industry grow larger and have fewer competitors, the gap between the rich and the poor continues to grow.
In the financial business this was the case as well, when I was growing up in the 60’s and 70’s I could go to a bank and get a short term loan. There were many banks and a lot of competition who served the large middle class. By the 1990’s, as the middle class shrunk and the lower-middle class grew, the traditional banks had moved away from small dollar, short term lending. This change was largely due to the high cost of servicing these loans as compared with profit made. The banks made a easy industry choice to cease short term lending. At the same time the banks made another industry choice to improve profits, after all isn’t that what capitalism is all about in the first place? The banks decided to greatly increase the cost of bounced checks, overdraft protection fees and late payment penalties. Instead of providing short term credit to Americans, they decided to profit from the lack of it. Today more than ever, a large percentage of bank profits are made through fees and penalties. Again, I can’t fault the banks for making the decision they did, the decisions were based on the profit motive, and it is not necessarily the duty of banks to provide credit to everyone.
Read more about Quid Loans
jmschko 