The poor have always paid higher interest rates. But not as high as now. 25 percent on car loans. 30 on credit cards. 500 percent on payday loans. Rates so high that the poor have now become one of the juiciest business targets in America. And they are getting juiced.
This week, Business Week's cover story's headline is "The Poverty Business," and it's all about American companies zealously targeting America's working poor as a new profit center - with sky-high interest rates and "gotcha" deals that no self-respecting middle class American would dream of taking.Â Their businessÂ formula? Need plus desperation equals big, fat profits.
What do you make of Americaâ€™s working poor as a booming new profit center?