Why Is It So Challenging for Poor People to Borrow Money?

Why is it so difficult for poor people to borrow? Most readers are not unreasonably asking why such a silly question would rate asking.

That poor people can’t borrow is plainly a consequence of their poverty. Precisely because they lack means, they’re not necessarily a good bet to pay back monies borrowed. Basic stuff. And since it’s basic, it’s also a statement of the obvious to point out that poverty, a lack of means, a lack of credit history, or all three factor into the higher rates that poor people borrow at, assuming they can borrow. In other words, a Federal Reserve at “zero” followed by “costless” credit is the imaginary stuff of pundits, not something that is in any way indicative of reality. This truth reveals itself most notably when it comes to poor people.