Myth of Financial Literacy Education
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Lauren Willis writes about disclosure law that:
"Seller disclosure and largely unfettered consumer choice is the dominant model ofr egulation in the U.S. for credit, insurance, and investment products. As these products have become more complex and the consequences of consumers' inability to understand them more dire, financial literacy education is a necessary corollary to the disclosure model.
This education is widely believed to turn consumers into "responsible" and "empowered" market players, motivated and competent to handle their own credit, insurance, savings, and investment matters by confidently navigating the bountiful unrestricted marketplace.
This vision, which promises both a free market and increased consumer welfare, seduces conservatives and liberals alike."
This assumption is also true for the sale franchises and distributorship, which explains why the dominant model is disclosure regulation and not relationship regulation.
But are we chasing a dream, a fantasy, and setting up franchiseconsumers for failure?
Perhaps there is a better way than simply relying upon super smart consumers driving the market for franchise reputation.
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