New study shows payday lending hurts economy, jobs

[eridani]

http://washingtonpolicywatch.org/2013/05/29/new-study-shows-payday-lending-hurts-economy-jobs/

Not only is payday lending a predatory industry, new evidence shows it is hurting our state economy.

A March 2013 study by the Insight Center for Community Economic Development finds the burden of repaying payday loans in 2011 led to $774 million in lost consumer spending and resulted in the loss of more than 14,000 jobs. Likewise, an increase in Chapter 13 bankruptcies of 1.587 percentage points (or 15.87 per 1000 borrowers) led to an overall loss of nearly $1 billion in the U.S. economy for that year alone.

On a micro level, the study found that each dollar of interest paid subtracted $1.94 from the economy due to reduced household spending, while only adding $1.70 to payday lending establishments. Think of it as a perverse anti-multiplier effect. In effect, for every dollar of interest paid, the U.S. economy loses a quarter.

The report notes that the impact to each state is relative to the total lending interest charged. The five states with the highest interest amounts – California, Texas, Florida, Mississippi, and Illinois – lost over 800 jobs each in 2011 and between $55-135 million.

[Purveyor]

1. It took a 'study' to figure this out? How much was the Insight Center for Community Economic

Development paid for this great, worldly...conclusion?

[dkf]

2. Is that only payday lending?

[msongs]

3. not to mention usurial interest rates from :legitimate: credit cards nt