Benefitting from Nanotechnology: A Question of Equity
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Proponents of new technologies often assume that equal access to technology will create equitable societies. But access to technology is only part of the equation. Although the scale of technology is changing, the underlying fundamentals driving who wins and who loses in society are unlikely to change. So if nanotechnology is like other major technology shifts, it should be viewed as neither a panacea nor a scapegoat with respect to social equity. Commerce itself is the driver for how the benefits of technology are allocated, and it is hard to imagine a technology that would ensure equity, independent of business and governmental decisions to ensure that equity is delivered. Consider, for example, the recent emergence of electronic payday loans. Storefront payday loan operations, located almost exclusively in poor communities, allow short-term, high-interest loans on a worker’s paycheck, with the money electronically withdrawn from the worker’s next paycheck. Or so the sales pitch goes. Interest rates for payday loans are often exempt from state and local regulations and are several times more expensive than regulated loans that are available through banks. Payday loan businesses charge a fee of 15 to 50%, which equals an average interest rate of 390% or higher. A customer at the time of the original loan might pay $90 in fees for a loan of $300. The strategies behind payday loans operate much like those used by credit card companies. Such companies attract borrowers with offers of ‘0% interest’, although a missed payment or two can transform ‘0%’ to ‘35%’ in addition to exorbitant late fees. In the case of loans and credit, customers can easily fall into a system of increasing indebtedness, rolling over the loans, thus generating an unending cycle of partial payments, rollovers, and additional large fees. Many payday loan operations are actually owned or backed by major banking institutions. The technologies to implement payday loans are the same as those that provide lower cost banking for businesses, the middle class, and the wealthy. Internet-enabled finance thus can reduce costs for some, while increasing cost for others. This does not mean technology is causing exploitation—instead, the underlying cause is a business model and technology that enables exploitation. |
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