Earlier quoted context omitted.
I think being really broke greatly hinders your ability to think rationally. I never committed any violent crimes, but I know throughout most of 2016 I was really really broke (about $15,000 credit card debt, 3 months of unpaid rent, a lawsuit from my landlord for the back rent). In the process I debated reaching out to one of those payday loan places, despite the fact that I knew they were scams. My desperate brain…
> In the process I debated reaching out to one of those payday loan places, despite the fact that I knew they were scams. Because they're not, the idea that they are is paternalistic bullshit from the kind of people who get their news from John Oliver. Debt can be dangerous, and payday loans are commensurately more so due to their high rates. But debt is a _tool_, and just like middle- and upper-income folks can use…
Reminds me of an anecdote from poor African countries. Farmers would buy fertilizer months before they needed it, even though it is logically better for them to save that money and only buy the fertilizer when they needed it (assuming the price of the fertilizer was constant). But they knew if they had the money the would be tempted to spend it in the meantime, so they bought it early to avoid the temptation.
Payday loans can encourage people to take out a loan and spend money even in cases where it would be better for them to find an alternative.