Microloans, also called microfinances. Very popular in developing countries in South Asia, and also the same thing that is responsible for the suicide epidemic of farmers in India. With high interest rates and fixed time-period constraints, they’re the most cruel and fucked up things to ever exist, they’re worse than indentured serfdom.
Back in the day, a loan shark was a criminal who charged an outrageous 20% interest for money. Working class folks were at the mercy of these “six-for-fivers.”
Ronald Reagan became President and now established banks could charge 35% or more.
Yeah, a factory worker would get $5 and pay back $6 the next week. That was a terrible crime. Then Reagan deregulated the banks and it became business as usual.
Microloans, also called microfinances. Very popular in developing countries in South Asia, and also the same thing that is responsible for the suicide epidemic of farmers in India. With high interest rates and fixed time-period constraints, they’re the most cruel and fucked up things to ever exist, they’re worse than indentured serfdom.
Sounds like ‘pay day loans’ in the US.
Back in the day, a loan shark was a criminal who charged an outrageous 20% interest for money. Working class folks were at the mercy of these “six-for-fivers.”
Ronald Reagan became President and now established banks could charge 35% or more.
(Looks at my credit cards)
Yall got any more of that 20% interest?
Yeah, a factory worker would get $5 and pay back $6 the next week. That was a terrible crime. Then Reagan deregulated the banks and it became business as usual.
To be fair, usury is much older plague than capitalism, but it’s been one of capitalism roots, and capitalism cranked it up incredibly.