Who Will be Affected by Bill S. 500?
People with bad credit or no credit and few assets will be hardest-hit by
bill S. 500, but all of society will feel some effect.
FIRST WAVE OF NEGATIVE EFFECTS:
If bill S. 500 passes, pawnshops will immediately begin closing up shop. Most will probably only stay open long enough to liquidate their assets. People Affected:
Many low-income people with no credit or savings live paycheck-to-paycheck. They have few ways to get cash quickly (no credit card, bank, etc.). When these people have an emergency - a job loss, pay cut, automobile breakdown, health concern, etc. - they have historically turned to pawnshops for the cash they need. However, pawnshops will no longer be available, leaving them with nowhere to turn. SECOND WAVE OF NEGATIVE EFFECTS:
When people in desperate need of cash have no legal way to obtain money, they sometimes resort to illegal activity. This illegal activity can be anything from petty theft, to burglary, to obtaining loans from illegal loan sharks. People Affected:
Crime can affect anyone. Increased crime rates mean you and your family now face a higher risk of being harmed. Plus, crime lowers property values and increases the need for police in a neighborhood. Lower property values means your city collects less tax from property owners (not to mention the taxes the city lost when the pawnshops went out of business), but they need more tax money to fund the increased police force. In short, everyone loses.
If bill S. 500 passes, pawnshops will immediately begin closing up shop. Most will probably only stay open long enough to liquidate their assets. People Affected:
- People with bad credit or no credit
- People with little or no savings
- Pawnshop owners and employees
Many low-income people with no credit or savings live paycheck-to-paycheck. They have few ways to get cash quickly (no credit card, bank, etc.). When these people have an emergency - a job loss, pay cut, automobile breakdown, health concern, etc. - they have historically turned to pawnshops for the cash they need. However, pawnshops will no longer be available, leaving them with nowhere to turn. SECOND WAVE OF NEGATIVE EFFECTS:
When people in desperate need of cash have no legal way to obtain money, they sometimes resort to illegal activity. This illegal activity can be anything from petty theft, to burglary, to obtaining loans from illegal loan sharks. People Affected:
- Everyone
Crime can affect anyone. Increased crime rates mean you and your family now face a higher risk of being harmed. Plus, crime lowers property values and increases the need for police in a neighborhood. Lower property values means your city collects less tax from property owners (not to mention the taxes the city lost when the pawnshops went out of business), but they need more tax money to fund the increased police force. In short, everyone loses.
