Bentham and payday lenders

Abstract

Jeremy Bentham defends a free market in interest rates by appealing to liberty. As a consequentialist, however, he must also morally evaluate the outcomes of practices, such as payday lending, that set interest rates. Given how the entrenchment in poverty that is reinforced by payday lending has negative consequences both in terms of utility and liberty, I conclude that Bentham faces the dilemma of abandoning either his defense of usury or his consequentialist moral theory.