Is the way that payday loan companies go about their methods of “helping” the American people morally problematic? Throughout this response I will give my personal opinion on the matter but also offer …show more content…
They ignore vast inequalities of wealth in this nation, with the top 20% holding over 80% of America's wealth. Another factor that they disregard is the conditions that cause the needy to take these loans. The heater needs to be run, the electricity needs to be on, and the list of things that require money is endless. Lower income families have a more difficult time paying for the expenses which in return forces them to take out a loan.
On the other hand, the Neo Marxian view is basically the opposite of the Neoclassical in that payday loans do exploit the people who use them. I agree with them on their opinion that these loans gives the wealthy assets that translate into power to control the ones who do not have the wealth. It is fairly clear to see that this is happening with the way I described previously in this response on how people get trapped into a never ending cycle of taking out payday loans. They also believe that payday loans take advantage of the vulnerability that these people have in their desperate need for money.
In conclusion, I do see a moral issue with what companies are doing with payday loans. I would have to agree with the Neo Marxian view more than the Neoclassical because of the way that the neoclassicals ignore the important details of why people are compelled to take these loans