Those Evil And Greedy Hotel Owners

My family and I recently traveled across country and I looked for inexpensive hotels for my overnights. I discovered that the average price for a decent hotel was about $70.00 a night. So let me see. $70.00 a night equates to about $2100.00 a month for rent. Wow, what a rip off for a one-room kitchenless unit in a so-so neighborhood next to a freeway.

So there I was, sleepy in my car, in dire need of a place to lay my head. And here were these greedy hotels wanting to gouge me just because they could. Man! Greed is so ugly.

So, what I propose is a law that makes it illegal for these shady types to charge so much to people who have no other place to stay. Let’s see, the going rent payment for a family of 4 is, say, $1000.00 a month. This equates to about $32.00 a night. But since hotels only give you one room, then it ought to be at least half that. So the proper rate should be about $15.00 a night. That would be fair.

“But wait”, you say, “hotels are different than houses. What you’re saying is completely absurd.”  To this I respond, “Yes it is, very.”

But what if I were to change the discussion to loans? Suppose I asserted that all loans ought to look like a home mortgage. Suppose I looked at the payday-loan business down the street and began a do-good crusade to force them to lend their money for a more “fair” rate?

In the same way that finding a place to sleep would become virtually impossible, so would getting that much needed loan to keep my lights from being shut off, or being evicted; both of which are much more expensive than the interest rate for high risk loans.

But hey, at least my do-gooderness would get a boost from “helping” the poor, even if I actually did more to hurt them, and that’s what it’s all about… isn’t it?

12 Comments

Filed under Economics, fairness, Money, Politics

12 responses to “Those Evil And Greedy Hotel Owners

  1. I had to laugh at this one. Since we just celebrated our 37th anniversary this week, we were looking at our old scrapbook of our honeymoon. We stayed in Holiday Inn in Alexandria, VA for $25 a night (two nights) and only $19 for the one night in Harrisburg, PA Holiday Inn.

    Of course, in those days gasoline was about 60 cents a gallon!

  2. Great analogy, thanks!

    P.S. I need you to help book my travel. Seems like I’m always paying a lot more than that!

  3. 4 things about payday loans

    Payday loans arent intended to be long term, so the APRs opponents spout out is on an unfounded assumption that the loan is going to take a year to pay back when it will (is supposed to) take 2 weeks to a month.

    Many people who use payday loans do so in order to not bounce checks. Bounced check fees can be multiple times worse in terms of (misapplied) APR rates. Imagine a $35 charge (interest rate) for a $5 over draft?

    The majority of those who oppose them never have or will use them. The people who do use them would not want to see them go away.

    If payday loans go away, where will the people who need them turn for short term loans? Loan sharks? Criminal behavior? I think it’s safe to say that people who find themselves in the regular predicament of “needing” a payday loan aren’t the most fiscally or socially responsible (make poor life decisions) people to begin with, removing the one safe safety net they have would really make their lives that much worse.

    • Thomas Sowell has written about the harm limited APRs have done to payday loans, especially in Oregon where most payday loan businesses have closed, limiting access to those who most need them. As John points out, the APR is a foolish way to look at such loans due to their very short duration, but when you are a liberal all you have going for you is emotions to try to make everyone feel good about the havoc you just caused!

    • Great point John. But you’re actually thinking about the actual situation of the poor. Do-gooders are guilt ridden for being better off than others and how they can appease it without lifting a finger. That pretty much leaves out everything but high-minded legislation. C.S. Lewis was right.

  4. Reblogged this on Sifting Reality and commented:
    4 things about payday loans

    Payday loans arent intended to be long term, so the APRs opponents spout out is on an unfounded assumption that the loan is going to take a year to pay back when it will (is supposed to) take 2 weeks to a month.

    Many people who use payday loans do so in order to not bounce checks. Bounced check fees can be multiple times worse in terms of (misapplied) APR rates. Imagine a $35 charge (interest rate) for a $5 over draft?

    The majority of those who oppose them never have or will use them. The people who do use them would not want to see them go away.

    If payday loans go away, where will the people who need them turn for short term loans? Loan sharks? Criminal behavior? I think it’s safe to say that people who find themselves in the regular predicament of “needing” a payday loan aren’t the most fiscally or socially responsible (make poor life decisions) people to begin with, removing the one safe safety net they have would really make their lives that much worse.

  5. “Do-gooders are guilt ridden for being better off than others and how they can appease it without lifting a finger. That pretty much leaves out everything but high-minded legislation.”

    Perfectly said.

  6. I am not torn on this politically because I don’t believe in using government force to shut down market activities which do not involve “hard” offences like fraud, theft, assault, etc. (as opposed to “soft” offences; things that bother the conscience – including even major sins like drug abuse – but do not directly violate another person’s rights) But I would say that no Christian should ever lend money at usury and that these places should be avoided like the plague. People ideally ought to develop social networks that include church, family, local charities & clubs, friends, local businesses, etc so that they have several layers of redundant alternatives to the loan shark when they fall on hard times.

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