a moment of clarity.
words.
"Demand for small-dollar loans may be rising partly because of the growing availability of payday loans. But a more significant factor seems to be that an increasing number of people are unable to make ends meet. Real wages have declined significantly since 1972, and more than a quarter of people in the U.S. have no emergency savings whatsoever. The demand for payday loans remains because the wages of these Americans are not sufficient to pay for basic needs, much less put something aside. Meanwhile, mainstream financial services have all but abandoned low- and moderate-income groups. And the incentives that enable higher-income earners to save and invest are nonexistent for those with lower incomes."
THE NEW YORKER: What Good Are Payday Loans?
SEE ALSO:
THE NEW YORK TIMES: Minimum Wage Increase Would Have Mixed Effects, C.B.O. Report Says
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