MSNBC: For Some, Poverty Creates a Profit
To have an honest debate about how to solve poverty we have to believe everyone in the debate has good will, but even if our approaches differ we all want poverty to end. But the reality is, there are those for whom poverty creates a profit.
One of the ways poor families make ends meet is through payday loans, and payday lenders operate with varied levels of freedom in as many as 36 U.S. states, lended to a total of 5.5 percent adults in the country over the past five years, according to a Pew survey. That adds up to about 12 million Americans going to a storefront center or online to borrow an average of $375 per loan, which might sound like a reasonable way to get the cash to cover emergency expenses, until you factor in the more than $520 on average spent on interest for those same loans.
Watch the video at msnbcnews.com.