A new comprehensive study by IHS Global Impact shows that
the payday loan industry has a strong positive effect on the economy. It stated
this industry has “measurable and
significant” economic benefits to our economy through taxes, employment,
and relationships with industries.
The study
acknowledged that payday loans can act as a valuable source of credit for many
who are otherwise denied credit. It then turned its attention to how the
industry affects the economy as a whole.
It found that the
industry has created over 155,000 jobs nationally and has contributed over $10
billion to the US gross domestic product. In 2007 alone the industry
contributed over $2.6 billion in federal, state,and local taxes.
This study furthers
the evidence that payday loans not only help individual wallets, but the
economy as a whole. The total income impact for all employees associated with
the industry is $6.4 billion. The industry is truly an enabler for everyone.
Because it takes
away money from banks and other lending institutions the payday industry has
received some harsh criticism. Despite what the claims are, the truth is payday
loans are really a force for good in the lives of many. It strengthens the
national economy while looking out for the individual thanks to the payday loans
anyone can receive.
