The Economic Efficiency Argument for the Consumer Financial Protection Bureau

A Washington Post article on the future of the Consumer Financial Protection Bureau (CFPB) contrasted the arguments of supporters, that the CFPB has protected consumers from unethical practices from the industry, with arguments by opponents that it has hurt lending. (These arguments are false, small businesses report they have little trouble getting credit.) The discussion left out the economic efficiency story for the CFPB.

The basic story is that if it's possible to make lots of money by us...