Acorn Ottawa picketed in front of Money Mart’s in the east end to protest the density of agencies that provide temporary loans. They say these agencies corner citizens and trap them like animals leaving them in an endless loop of poverty.
So what are they asking for? A minimum distance between agencies and higher licensing fees.
Let’s take these two items and look at them.
Minimum distances between agencies to be mandated.
This will reduce the number of agencies in the area giving the patrons fewer options. It also means that should a patron want to compare prices they would have to travel further to determine which location or outlet is offering the best deal. So in effect, this request would make it harder on patrons to do what is best for them and leave them at the whim of their closest outlet.
This also reduces the supply of services which, if we pay attention to microeconomic supply and demand curves, will drive up prices further hurting the patrons of these businesses.
Higher License Fees to Operate a Money Loan Establishment
Higher license fees to operate the business means one of three things.
- The people who work in the outlet will get paid less because the business will have to absorb the costs, or
- Prices for the services they offer will have to go up to compensate for the added cost, or
- The businesses will eventually go under leaving those with poor credit and the need for money nowhere to go in emergency situations. This is the most dangerous as those advance loans often go towards buying food for the patrons family.
All of these options hurt the local community.
So what does this all add up to? ACORN is actually hurting those it is most out to help because it does not understand the simple concepts of supply and demand. Shame on ACORN. You are OfficiallyScrewing over Ottawa residents with your antics.