Stealing from the poor

Dave at Nix Guy and Wide Open has a post about regulation of the pay day lending industry.

I'm still trying to figure out what the big deal is about these industries and why they need regulating.

Well Gordon, these businesses rip off poor people that don't know any better or are desperate.

First, I would disagree with the premise that poor people "don't know any better". But beyond that, have you ever been in a convenience store and watch these same "poor" people gobble up lottery tickets, beer and cigarettes? It's probably a contributing factor as to why they are poor and/or desperate.

Second, the Ohio Lottery might be the biggest rip off of the poor that could possibly exist. The lottery pays off less than 60% in payouts, it seizes on the desperation of poor people looking to get rich quick, and it's sucked billions of dollars out of poor neighborhoods that would be spent on something a lot more productive than a get rich quick dream. Why are we not talking about shutting it down?

Third, let's talk about all the sin taxes that have been foisted upon beer and cigarettes, taxes that disproportionately impact the poor.

So what gives? When is it OK to screw the poor? When we use the money for schools? Remember the businesses that profit from these pay day loan businesses also pay income taxes which fund the schools. Does that make it more palatable?

I'm not out to defend the pay day loan business. I do think that the people that run these as well as the Jackson Hewitts & JD Byrider's of the world are first class scum bags. But no one forces anyone to go to these businesses, just like no one forces anyone to buy lottery tickets.

I would just like someone to explain the difference to me.