The New York Times is again on the warpath against what it calls “predatory lending.”
Just what is predatory lending? It is lending that charges a higher interest rate than people like those at the New York Times approve of. According to such thinking — or lack of thinking — the answer is to have the government set an interest rate ceiling at a level that will be acceptable to third parties like the New York Times.
People who believe in government-set price controls — whether on interest rates charged for loans, rents charged for housing, or wages paid under minimum wage laws — seem to think that this is the end of the story. Yet there is a vast literature on the economic repercussions of price controls.
Whole books have been written just on the repercussions of rent control laws in countries around the world.