the process of pawning and how it benefits both people
In: Economics
Before banks and credit reports, pawn shops served as an easy way for people to borrow money. Let’s say you bring a gold watch to a pawn shop, they value it at $500… now you can borrow (up to) $500 from the pawn shop, and they hold onto your watch for you. When you have the money, you go back to the shop, pay the $500 (plus a fee), and collect your watch.
And if you never get the money, the have your watch, and after a certain amount of time, they are free to sell it.
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