Growth in the Pawn Shops Industry

Americans love reality television shows such as Pawn Stars and Hardcore Pawn. And in reality, pawn shops are becoming the financial services venues of choice—or necessity—for consumers pushed out of the mainstream financial system.
 
While the pawn shops industry has weathered the recessionary economy well in part because of gold prices and cash hungry consumers (see here), Todd Zywicki blogs on the Volokh Conspiracy here that government interventions such as “the Durbin Amendment, Credit Card Act, restrictions on overdraft protection, CFPB, etc.” have taken away higher-quality options for consumers.
 
Or in other words, the law of unintended consequences has struck again.

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