I'm Going to Get In Trouble For This
I kind of half agree with this.
A book can take hundreds, if not thousands of hours to write and very few writers ever make more than a pittance. The JK Rawlings, Stephen Kings, etc are amongst the very few exceptions.
A writer's royalties will vary from 5 to 25% depending on their contract with the publishers with most averaging to the lower end of the scale. If you get a 10% royalty and your initial run is 10000 paperbacks at about $6.99 each and you sell all of them (a rare event as most first time writers find their books being remaindered) you will make about $7000. If the book took you 1000 hours to write and get published, you made less than minimum wage.
When a book is checked out of a library for free the writer gets only the initial royalty for the copy that is sold to the library. People are using and enjoying their work and not paying for it.
Here's what the above mentioned group wanted to do. Charge a modest fee for library books in which the writer is still alive, and the fee varies with the age of the book.
A book less than 2 years old $1.00
A book 2-5 years old $.75
A book 5-10 years old fifty cents
A book 10-20 years old a quarter.
Over 20 years old would mean no fee.
The fee would be split up with 20% going to the library, 5% being a fee to handle the money, and the remaining 75% would go to the publisher and the writer, divided between them by agreement. If no agreement exists then the split would be equal shares.