This is such a silly statement.
Pawn shops are usually the best alternative for people who are in desperate need of money. A person who needs money will be able to pawn an item they probably don't need. They will get cash for it and still have a chance to get the item back should they want it back later. And if they don't get the item back there's no ding on their credit rating. It's a much better alternative than getting a loan and getting into further debt. Especially when a typical payday loan has an interest rate of at least 350% apr.
Pawn shops are good, fair businesses that have been around as long as money has been around. They provide a necessary service to those who use them. And I promise you very few pawn shops pull in the "big profits" you are thinking of.