Banning high-interest rate, small sum and short-term loans being made by legal companies does not ban high-interest rate, small sum and short-term loans from being made. Nor does making it near impossible to obey all of the laws on the issuance of such loans. It just means that such loans will be issued by those who do not obey the law:

More than one million people are in debt to loan sharks, new research suggests, as it emerges illegal money lenders are demanding sexual favours in repayment contracts with borrowers.

Around 2.4 per cent of the population - or 1.08 million people - admitted they had borrowed money from “someone locally who charged interest” who operated outside the conventional banking sector, according to the report by the Centre for Social Justice (CSJ).

We have been making this point widely for some years:

Perhaps no such technology exists, in which case we’ll be stuck with something expensive and somewhat dangerous that 10 million people want each year. It’s a bit like drinkable wine, and we should recall what happened when we tried to ban that: prohibition of the best credit we have to offer will inevitably lead to Fat Tony and his friends running amok again.

As it is being complained about. The thing to recall here is that making something illegal, if people still desire it, doesn’t stop that thing from happening. It just makes that thing illegal, without the law.

We’ve even pointed out what is the solution. If you don’t like the thing then innovate to create something better. As it is better then folk will naturally use it and the thing disliked will disappear.

A little advice on what we think would make a better world. Why not come up with the solution first? Create the better system then compete the old out of business instead of using the law to ban. On the basis that people might really need the goods or services on offer. Depriving people of what they need is not quite the way to do things now, is it?

And if it’s not possible to create something better that will so outcompete then, well, the current system is as good as it gets then, isn’t it?