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Ask Dave

Dave's Thoughts On Microcredit Lending

Microcredit lending is done in Third World countries as a way of promoting entrepreneurship, and a listener wants to know if Dave likes it.

QUESTION: Listener on Twitter asks Dave what he thinks of microcredit lending.

ANSWER: Microcredit lending has to do with people helping other people in the Third World by making small loans to encourage entrepreneurship. I’ll first say that anytime you can help anybody get anything started in the Third World with entrepreneurship, I’m for you. But while I’m not mad about microcredit, I won’t be doing it.

I don’t think debt is the best way to generate entrepreneurship. I understand the concept, and I have no problem with people helping people, but I don’t think it’s good when businesses borrow money. I don’t borrow money. It would be inconsistent of me to believe that it’s the best way to get people out of poverty.