When I wrote last month about payday lending in Missouri, I posed two questions to Stand Up Missouri, a lobbying group representing loan shops opposed to a 36% cap on interest rates in the state.
Amar Bhidé is a smart man with a very stupid idea:
We need to take away the reason for any depositor to fear losing money through an explicit, comprehensive government guarantee. The government stands behind all paper currency regardless of whose wallet, till or safe it sits in. Why not also make all short-term deposits, which function much like currency, the explicit liability of the government?
If you spend a fair amount of time among privileged dot-com types, you’ll probably be familiar with Uber, a kind of luxury car service for the smartphone era. The idea is that you pull out your iPhone, punch a couple of buttons, and in a few minutes a swanky black car pulls up to drive you to your next destination. You get out, no tipping, and the cost of the fare is automatically charged to the credit card you have on file. Elegant!
Remember the importance of counting intersections? Density alone is good, but not sufficient for a pleasant, walkable urban experience: you also need to be able to get from one place to another in a reasonably straightforward, noncircuitous manner. Cities did this naturally before the 1930s, but then urban planners started building cul-de-sacs and other ways of maximizing the effective distance between any two points.