"The curious task of economics is to demonstrate to men how little they know about what they imagine they can design."
- F.A. Hayek
So apparently the cover story of Business Week has an article on the expanded use of credit by low-income individuals. The conclusion is that this is in fact bad for these people. Somehow the idea that poor people using credit to get things that they want is bad is completely ludicrous.
Of course there are poor people that can't properly manage their funds and end up in debt trouble. Hey guess what, I've been in that boat before. I know what it's like, and I might be back in it after I graduate as I've invested alot of loan funds in my college education.
Props to Russell Roberts over at Cafe Hayek for finding this.