Benefits of eliminating the use of cash moneyI have been thinking about the financial benefits (as well as convenience) if we did away with paper and coin money and make all transactions via plastic/debit card.
This would eliminate the underground or cash economy.
Many people do jobs that they get paid cash for. They do not claim this as income and do not pay taxes on this money.
I have read that the underground economy is as large as the normal economy. Getting tax income from this underground economy could double the governments income.
Since all transactions are on plastic they can be monitored.
Organized crime and the corner drug dealer can no longer get paid in cash.. Illegal immigrants and those on fixed time Visas either could not pay for anything or get paid because the illegals could not get a card and the people here on student Visas card would expire.
Sounds like big brother? If the government wanted to they could track most of your money now. It would not affect those of us who follow the rules.
With the extra income social security would be solvent and that would no longer be a political football that each party uses to its advantage.
We could have tax cuts.
We could balance the budget and pay off the debt. No longer indebted to the Chinese.
Free health care for all Americans.
The arts could be funded.
With free health care small businesses would be more competitive with other companies in the world.
Supplemental policies to provide the same coverage most of us expect would be offered and could be purchased by companies or individuals.
So, what are your opinions or thoughts?
6 comments:
At first glance, I like the idea fine. But then I have to acknowledge the grinding fear from my core (or maybe it's my lizard brain screaming).
What if our electronic infrastructure (read: information superhighway) goes down? Talk about a doomsday scenario: I need to buy some gasoline and something to eat -- but I can't access my money!
And as for how much the Feds know about our spending, we need only look at WalMart's huge database, wherein all my purchases reside. They know what I like to eat, the thread-count of my bed linen and every time I get a bladder infection. And a lot more besides! Eeesh! *I try not to think about this -- it hurts my head.*
So I'll say "it's a good idea but..."
naomi, you bring up some of the same points that I was thinking about. Just look at the chaos that happens when we can't access an ATM machine to get a few dollars out of our accounts. It would be a nightmare not to be able to get to our own money.
As for Big Brother, many stores now monitor that with the "discount" cards, which keeps track of what we buy. Our insurance company sends me a summary of every procedure and medication and doctor visit that I have had and how much it all costs. I imagine people can get into that if they want to, and like ooc mentioned, our checking accounts are probably already monitored and our information can be accessed probably quite easily.
My main concern would be a possible meltdown of our electronic infrastructure.
What happens now if our electronic infrastructure collapses? The only money you would have is what is in your purse. So I do not see the problem.
The solutions of immigration control/monitoring, Mafia monitoring, drug monitoring and the possibility of doubling the tax income that intrigues me.
No, it sounded like all cash would be gone -- even coins. That we would all be using plastic at ATMs and POSs. I even envisioned drug sales on downtown streets, with the dealer's own card swiper...
Doubling the tax? Tell me more.
Yeah, but if we do away with paper money, then Jason won't be able to give it to homeless people anymore!
:-)
The dealers own card swiper would make the dealer accountable for the intake of money and he would have to pay taxes on it.
At some point they would have to state their business and someone would find out what he was doing and arrest him.
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