ANSWER THE FOLLOWING short essay questions in 150-200 words. (NO MORE than 200 WORDS)
In the Hyman reading, he uses the phrase “consumer freedom.” Given the rest of what he says in the chapter, as well as everything else you’ve learned in this class so far:
(a) What do you think that phrase means?
(b) Why do you think Hyman uses that phrase when talking about access to credit?
(c) Provide at least one example from the Hyman reading that backs up your argument.
Recall this question from Carruthers and Ariovich:
“Consider that today many people have too much debt, and face the prospect of personal bankruptcy or spending years repaying all the money that they owe. Since debt only occurs when someone wants to borrow and someone else is willing to lend, who is to blame for this situation? What distinguishes an ‘irresponsible’ from a ‘responsible’ borrower? What differentiates between ‘responsible’ and ‘irresponsible’ lenders? Does it make sense to pass laws that protect ‘responsible’ lenders lenders and borrowers, or to penalize ‘irresponsible’ lenders and borrowers?”
I’d like you to answer this question using student loans as the specific example.
You don’t need to address every little question in the statement above. I’d like to know:
(a) who you think is more responsible (the borrower or the lender);
(b) who is to blame if a borrower ends up “in over his/her head”; and
(c) whether you believe it makes more sense to pass laws that protect borrowers and lenders (protection from the society level), or to penalize them (punishment to individual actors).