Reflections on "The Poverty Business"

The assigned reading tackled a really big, hard to dissect issue, the problem of people so poor they can't pull themselves out of poverty, and the businesses that take advantage of them. These companies offer up all sorts of services, and the transiency of the benefits of these services are far outweighed by the burden of interest, and in the long run, pile more debt onto the plate of our most financially vulnerable citizens.

These services or programs are disguised as helpful, seemingly useful alternatives for people with incomes so low that maybe ordering a computer sight unseen on an unclear payment plan is the only way they could own a computer in the first place. The problems lie in the hidden interest, the unclear, often purposefully deceptive terms of agreement, the ignorance of the consumer, and the fleeting, uncertain nature of any income the consumer might have.

The interest and penalties for not paying on time on these loans are so steep that the buyer ends up paying an exorbitantly larger amount for the item than normal. The logic behind this is that doing business with people who have so little money is a high risk enterprise, and any deviation from the strict payment plan warrants gouging the customer for what little money they have.

It's very easy to blame the victim here, but these people, in many cases, have run out of or haven't heard of any other options. I think that therefore, the responsibility lies with the companies so ready to take everything they can from these struggling people. I believe the only way to help those unfortunate enough to fall prey to these schemes is free financial education and consulting, and loans with for less severe penalties and lower interests. I don't think anyone can see this situation and not understand what part these companies play in keeping the poor, poor.