The Economist's Question Is: As Compared to What?
11 May 2007
The Editor, Business Week
Dear Editor:
Surely your reporters can muster more than token skepticism of the popular delusion that businesses hurt poor people by making credit more readily available to them ("The Poverty Business," May 21). While example can be piled atop example of borrowers who today are "trapped" by debt, your reporters instead should ask "what's the alternative?" Were poor persons in the past who had less access to credit better off than poor persons today who enjoy greater access? Is being trapped by poverty with little hope for credit better than having ready options for securing loans?
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
The Editor, Business Week
Dear Editor:
Surely your reporters can muster more than token skepticism of the popular delusion that businesses hurt poor people by making credit more readily available to them ("The Poverty Business," May 21). While example can be piled atop example of borrowers who today are "trapped" by debt, your reporters instead should ask "what's the alternative?" Were poor persons in the past who had less access to credit better off than poor persons today who enjoy greater access? Is being trapped by poverty with little hope for credit better than having ready options for securing loans?
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Thursday January 3, 2008 at 12:05pm