That should be the headline for this article. It’s the latest tear jerker about payday loans. It starts off with the story of Earl Milford, who had the good sense to take out payday loans at no fewer than 16 different establishments and now pays $1,500 per month to cover the interest. Mr. Milford, who the article says is on a fixed income, can’t afford to buy Christmas presents for his married son, his wife, and their two children - all who live with him. Where was the government? Why didn’t the government protect him from himself? We can’t be expected to make decisions for ourselves like grown ups!
I am, by the way, sick of the term “fixed income.” It’s used in such a way as to imply that A) the person receiving the “fixed income” can’t or shouldn’t be expected to find supplemental income or B) the rest of us can easily turn a knob and adjust our income as needed. If you have a salaried job then your income is just as fixed as Mr. Milford’s (he gets a pension and disability benefits).
The article didn’t mention why Milford’s progeny isn’t expected to provide for his own offspring or why he, his wife, and their kids still live at Milford’s home.
I abhor payday lenders just as much as anyone. I think their practice is immoral. But government does not exist to protect us from ourselves.
Milford’s plight is somewhat illustrative of the futility of economic redistribution with the goal of eliminating poverty or any perceived financial dichotomy. Poor people make bad decisions that insure they remain poor. Rich people make good decisions and enable the poor people to make their bad decisions. My wife saw anecdotal evidence of this on a recent episode of Oprah. A show producer gave a homeless man $100,000 and offered free financial counseling. The man took the money, declined the advice, and predictably wasted the entire sum of money. The homeless man continued his habits of poor decision making and remained poor, while the retailers who instead wisely choose to offer goods and services in exchange for money got it all in the end.
The cries of people begging to have their decisions made by government because they couldn’t be troubled with making the right one themselves could be heard recently when New York City banned trans fats. It’s not enough for groups like these to simply be content with their own personal choices or to go the extra mile and inform you about the risks and rewards of engaging in certain activities or consuming certain products. No sir! They must actually encourage the government to make your decisions for you. How nice of them. The other day I had a trans fat laden french fry in one hand and an apple in the other and I couldn’t for the life of me figure out which one I should eat. I felt very confused and I just wished a bureaucrat would come by and take one of the two from my hand so that I could consume the other.
The core problem of having government make decisions for us is that their decision does nothing to change demand. Just think about the war on drugs. The government says smoking marijuana is illegal, but people still want to purchase and use it. Consequently a black market forms and thrives. Criminals seek to create a supply to satiate the demand and many innovative, intelligent people who might otherwise engage in legitimate, beneficial occupational endeavors choose to lead a life of crime (like these entrepreneurs who bought and gutted suburban houses to set up hydroponic marijuana farms). I don’t smoke marijuana and I wouldn’t if it were decriminalized (I don’t think that intentionally inhaling the products of combustion is wise), but people should be allowed to kill themselves in whatever manner they deem appropriate as long as they don’t infringe another’s rights.
I’ll close with two quotes from pretty disparate sources. The first is from Milton Friedman, written in response to the banning of a sugar substitute called cyclamates. The second is from the late comedian Bill Hicks.
“If we continue on this path, there is no doubt where it will end. If the government has the responsibility of protecting us from dangerous substances, the logic surely calls for prohibiting alcohol and tobacco. . . . Insofar as the government has information not generally available about the merits or demerits of the items we ingest or the activities we engage in, let it give us the information. But let it leave us free to choose what chances we want to take with our own lives.” - Milton Friedman
“It’s not a war on drugs, it’s a war on personal freedom.” - Bill Hicks.
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