Friends don't let friends drive drunk - so should they warn them about debt?

I don't normally take sides on policy issues, such as what to do about taxes or Social Security. I find it more useful to write about the way things are, not how we wished they were.

But today I am taking a policy stand after chewing over an illuminating and disturbing report signed by a diverse group of 62 scholars and national leaders.

"For a New Thrift: Confronting the Debt Culture," comes from the Commission on Thrift, a project of the Institute of American Values in partnership with six other think tanks and national groups (see www.NewThrift.org). The report has received scattered media attention, but not nearly all it deserves.

Writing about this report doesn't mean I necessarily agree with all of it. I do support, as the authors advocate, the creation of a "pro-thrift institutional environment" to encourage "financial health, regular savings, and wealth building for all Americans."

The report recommends a "public-education campaign for thrift," modeled after those against smoking and drunken driving. Among other things, it favors increasing support for existing thrift institutions, such as credit unions, developing initiatives to provide low-interest consumer loans, and returning to usury rate caps on small loans.

"In recent decades, new predatory lending institutions have moved into the malls and mains streets of America," said David Blankenhorn, president of the institute.

In the private sector, he said, they include payday lenders, franchise tax preparers that offer high-interest "refund-anticipation" loans, auto title lenders, subprime credit-card issuers, subprime mortgage lenders, and private student-loan companies.

The public sector has it own "antithrift institution," the report argues: state-owned and operated lotteries.

The report recommends "repurposing the state lottery to include a savings ticket feature." (At the same place where you buy a lottery ticket, you could buy an "every ticket wins" savings ticket that's redeemable for a higher amount in the future.)

I was disturbed by the report's figures that Americans who can least afford it - households making less than $12,400 a year - spend the most on lottery tickets, an average of $53.75 a month.

What about personal responsibility?

"Some people get over their heads in debt because of their own profligacy and irresponsible choices," the report acknowledges.

At the same time, "credit card issuers will gladly provide blank checks to cardholders for any purpose and cheerfully increase the credit line on the card. Payday lenders will advance money until the next week's paycheck. Tax preparers will offer loans in advance of expected federal tax refunds. Auto title lenders will provide loans on the family car . . . " with costs often the equivalent of 300 to 500 percent interest rates.

Humberto Cruz is a columnist for the South Florida Sun-Sentinel. He can be reached at AskHumberto@aol.com.