There are indeed reasons why library fines might not be the most sensible things to be charging. But that’s different from whether they’re the optimal thing to be doing.
The American librarians, that hotbed of conservative and thus logical thought, have decided that library fines should go because, you know, poor people:
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Resolved, that the American Library Association (ALA), on behalf of its members
1. adds a statement to the Policy Manual that establishes that “The American Library
Association asserts that imposition of monetary library fines creates a barrier to the
provision of library and information services.”;