What fundamentals of capitalism are relevant to this case?
Essentials of entrepreneurship which seems important for this case comprises of consumer sovereignty and profits.
The application of fundamentals of profit in this situation is on the basis that the short term loan advancing companies like payday industry make huge revenue annually, which means billion dollars across number of branches in any given country. Numerous customers see the substantial earnings to be unethical which these organizations are making off from small loans; on the other hand generating profits seems to be the principle objective in today’s competitive economy for any businesses.
The next applicable fundamental of capitalism is consumer power or sovereignty. (Pettinger, 2008) “The ability and freedom of consumers to choose from a range of different goods and services”. However, even after possessing the power, …show more content…
(2015, October 19). What 's the Real Problem with Payday Loans? | Acton PowerBlog. Retrieved October 11, 2016, from Acton Institute PowerBlog: URL: http://blog.acton.org/archives/82772-what-the-real-problem-with-payday-loans.html
College of Arts and Sciences Howard University. (n.d.). Retrieved October 10, 2016, from College of Arts and Sciences: http://coas.howard.edu/
PayDayLoanInfo.org. (n.d.). Retrieved October 11, 2016, from PayDayLoanInfo.org: http://www.paydayloaninfo.org
Pettinger, T. (2008, November 10). Producer and Consumer Sovereignty - Econimics Help. Retrieved October 10, 2016, from Economic.Help: http://www.economicshelp.org
The $46 billion payday lending industry is in for a big blow. (n.d.). Retrieved October 11, 2016, from The $46 billion payday lending industry is in for a big blow: http://finance.yahoo.com/news/CFPB-payday-lending-rules-explained-192558796.html
The Advantages and Disadvantages of Payday Loans. (n.d.). Retrieved October 16, 2016, from The Advantages and Disadvantages of Payday Loans:
Essentials of entrepreneurship which seems important for this case comprises of consumer sovereignty and profits.
The application of fundamentals of profit in this situation is on the basis that the short term loan advancing companies like payday industry make huge revenue annually, which means billion dollars across number of branches in any given country. Numerous customers see the substantial earnings to be unethical which these organizations are making off from small loans; on the other hand generating profits seems to be the principle objective in today’s competitive economy for any businesses.
The next applicable fundamental of capitalism is consumer power or sovereignty. (Pettinger, 2008) “The ability and freedom of consumers to choose from a range of different goods and services”. However, even after possessing the power, …show more content…
(2015, October 19). What 's the Real Problem with Payday Loans? | Acton PowerBlog. Retrieved October 11, 2016, from Acton Institute PowerBlog: URL: http://blog.acton.org/archives/82772-what-the-real-problem-with-payday-loans.html
College of Arts and Sciences Howard University. (n.d.). Retrieved October 10, 2016, from College of Arts and Sciences: http://coas.howard.edu/
PayDayLoanInfo.org. (n.d.). Retrieved October 11, 2016, from PayDayLoanInfo.org: http://www.paydayloaninfo.org
Pettinger, T. (2008, November 10). Producer and Consumer Sovereignty - Econimics Help. Retrieved October 10, 2016, from Economic.Help: http://www.economicshelp.org
The $46 billion payday lending industry is in for a big blow. (n.d.). Retrieved October 11, 2016, from The $46 billion payday lending industry is in for a big blow: http://finance.yahoo.com/news/CFPB-payday-lending-rules-explained-192558796.html
The Advantages and Disadvantages of Payday Loans. (n.d.). Retrieved October 16, 2016, from The Advantages and Disadvantages of Payday Loans: