Usury Laws

Complete a one page response to the following question:

Many states have usury laws, which place a ceiling on interest rates. Why do most economists dislike these laws?

in this week's written assignment you are required to analyze the usury laws. In your paper, please make sure to explain what usury laws are and what types of usury laws are being enforced in your state (TX). Here are links to a website that can inform you about usury laws in your home state: http://www.usurylaw.com/ and http://www.lectlaw.com/files/ban02.htm  I do not know whether the information on these websites is accurate or up to date, but it may help you to understand the issue. Your paper should also explain why economists dislike usury laws. On that issue, you can see Chapter 29. Note that usury laws are a type of price ceiling. Therefore, in part, you should explain why most economists dislike price ceilings. You should also ask yourself whether usury laws can make sense sometimes.

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IN-TEXT CITATION