Should we get rid of cash?

Roni_M

There are many reasons that eliminating cash would be a bad idea. Many have been mentioned. From a companies standpoint prices would have to go up to cover the fees for the bank. Small businesses would not be able to remain competitive, because the little guys pay higher fees. And don't even get me started on who pays for your airmiles or what ever "free" points system your credit card offers. So the business pays, then you pay interest if you don't pay it off...the banks would be the ones who benefit and of course the government because it would kill the underground economy.

ninerbuff

I've never trusted banks, to protect my money. They make a stupid decision or get hacked, poor my money is gone. While the government does insure the deposits, I don't trust them to always be there. I'll stick to cash, thank you.

PS: This is also a very good point. Wasn't it The Stock Market Crash of 1929 where people were lined up outside banks trying to take out their savings? A lot of people lost all the money to their names. From my understanding (I'm not 100% certain), if a bank declares bankruptcy, by law, they do not have to return your money that they lost (or spent). A bank is a business, and the same goes for businesses. If you put in an order online and the company files bankruptcy, while a good company will return your money or ship your order, all their previous duties are forgiven and forgotten.

This is why they are FDIC insured. You don't lose your money if your bank gets robbed. Also you may be talking about "investment banks" like Lehman Brothers.

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ninerbuff

There have been many many many studies that conclude that people spend more when using cards vs cash. Mcdonalds discovered somewhere in the realm of a 50% increase when they offered to pay with CC's.

There is an emotional connection to cash & when people spend it, they register it as pain. Imagine going to buy a piece of furniture for $500 or even groceries. You feel it when you're laying down those $100s or $20s. When you just swipe a card, it doens't register in the same way or intensity.

This definitely was one of the cons if cash was abolished in the discussion. Even though I don't charge much at all, it is easier for me to use my debit card than it is for me to fork over cash. Good thing I'm such a cheapskate though because even then I'm still trying to barter with buying merchandise by asking for coupons or discounts before hitting the cashier.

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ninerbuff

There are many reasons that eliminating cash would be a bad idea. Many have been mentioned. From a companies standpoint prices would have to go up to cover the fees for the bank. Small businesses would not be able to remain competitive, because the little guys pay higher fees. And don't even get me started on who pays for your airmiles or what ever "free" points system your credit card offers. So the business pays, then you pay interest if you don't pay it off...the banks would be the ones who benefit and of course the government because it would kill the underground economy.

But we're talking credit cards here and not actual available "funds" like a debit card. If you had no money in your account, a debit card would be rejected.

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sjdoman

I have gone in stores before when their network was down and they were unable to process credit or debit. I have a relative who has written so many bad checks and overdrafted their debit card by hundreds of dollars and they are no longer allowed to use checks or debit and their credit rating makes them unable to get a credit card. My favorite ice cream stand only takes cash. So I vote cash is completely necessary.

Begood03

Remember that cash can't be tracked as easy as using a card can.

ninerbuff

As for counterfeiting and bank robbery, don't you watch the news? High Tech crime is big business. Criminals love to conterfeit Debit and Credit cards. They rob your bank all the time. At least when a bank robber sticks up the bank, the bank deals with the loss via insurance. When high tech robbers hack into your account, YOU deal with it. Maybe the bank will absorb the loss eventually, but YOU will deal with the initial forfeiture and a great deal of the aftermath.

See your point here and on the show it was mentioned that counterfeiting cards is getting harder and harder for criminals. They also mentioned that it takes those type of crimes time to get the expensive equipment needed, leaves a trail to the transactions, and many of the thieves are easier to catch.
With a robbery you only need a thug who threatens someone who has cash.

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lulu9663

While I normally just lurk here, I though I would comment on this issue from a victim's standpoint (not that I'm a victim, but I work for an advocate)

1. Witness protection program. The gov't often provides cash to people in this program, because cash is incredibley hard for hitmen(or just general low-life criminals) to track.

2. You may want to disappear someday, for whatever reason. You can only play shadow games for so long. If you have a bank issued card tied to your name, it's only a matter of time before someone finds you. Cash is incredibly important for domestic violence and stalking victims to have. If you're in a bad relationship, you can hide some cash til you have enough to get away. If you use only bank cards, the abuser most likely will have either taken over, or be monitoring your account. For stalking victims, it's pretty similar. People say that a victim can't be stalked by their spending habits, but it happens every day. Cash become essential to survival for these people.

On a side note... Getting rid of cash won't get rid of things like the illegal drug trade. Criminals will just start to barter for what they need. Many already do it, in form of prostitution in exchange for crack, etc.

ninerbuff

While I normally just lurk here, I though I would comment on this issue from a victim's standpoint (not that I'm a victim, but I work for an advocate)

1. Witness protection program. The gov't often provides cash to people in this program, because cash is incredibley hard for hitmen(or just general low-life criminals) to track.

2. You may want to disappear someday, for whatever reason. You can only play shadow games for so long. If you have a bank issued card tied to your name, it's only a matter of time before someone finds you. Cash is incredibly important for domestic violence and stalking victims to have. If you're in a bad relationship, you can hide some cash til you have enough to get away. If you use only bank cards, the abuser most likely will have either taken over, or be monitoring your account. For stalking victims, it's pretty similar. People say that a victim can't be stalked by their spending habits, but it happens every day. Cash become essential to survival for these people.

On a side note... Getting rid of cash won't get rid of things like the illegal drug trade. Criminals will just start to barter for what they need. Many already do it, in form of prostitution in exchange for crack, etc.

Great points! It's things like this that would dissuade me from having cash totally being abolished.

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dme1977

While I normally just lurk here, I though I would comment on this issue from a victim's standpoint (not that I'm a victim, but I work for an advocate)

1. Witness protection program. The gov't often provides cash to people in this program, because cash is incredibley hard for hitmen(or just general low-life criminals) to track.

2. You may want to disappear someday, for whatever reason. You can only play shadow games for so long. If you have a bank issued card tied to your name, it's only a matter of time before someone finds you. Cash is incredibly important for domestic violence and stalking victims to have. If you're in a bad relationship, you can hide some cash til you have enough to get away. If you use only bank cards, the abuser most likely will have either taken over, or be monitoring your account. For stalking victims, it's pretty similar. People say that a victim can't be stalked by their spending habits, but it happens every day. Cash become essential to survival for these people.

On a side note... Getting rid of cash won't get rid of things like the illegal drug trade. Criminals will just start to barter for what they need. Many already do it, in form of prostitution in exchange for crack, etc.

THANK YOU FOR POSTING THIS...
I already thought it was a bad idea but your reminder of these 2 types of individuals has strengthened my opinion on why it should stay the way it is.

PLUS, people already trade their foodstamp/ cash assistance cards for drugs to the dealers what makes them think they wouldnt do it with regular cards. . .
they also HAVE cell phone adapters now for credit cards transactions what makes people think the dealers wont EVOLVE with their business as the world does with its.

Tybalt71

I'll agree to disagree, im dutch, and Holland is one of the most liberal countries in the world with little to none crime with legalization of prostituion and drugs etc, they took all the competetion out of it and out of the hands of dealers etc. just now the govermant is the dealer and or pimp.-Ty

LauraMacNCheese

I'll agree to disagree, im dutch, and Holland is one of the most liberal countries in the world with little to none crime with legalization of prostituion and drugs etc, they took all the competetion out of it and out of the hands of dealers etc. just now the govermant is the dealer and or pimp.-Ty

I heard the Netherlands was planning to ban foreigners from their pot shops, effectively putting a huge kink in their tourist money.

Roni_M

There are many reasons that eliminating cash would be a bad idea. Many have been mentioned. From a companies standpoint prices would have to go up to cover the fees for the bank. Small businesses would not be able to remain competitive, because the little guys pay higher fees. And don't even get me started on who pays for your airmiles or what ever "free" points system your credit card offers. So the business pays, then you pay interest if you don't pay it off...the banks would be the ones who benefit and of course the government because it would kill the underground economy.

But we're talking credit cards here and not actual available "funds" like a debit card. If you had no money in your account, a debit card would be rejected.

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If you are strictly talking debit, the fees range from 10¢ to $1.50 per transaction...plus montly equipment rental. So if you go to your local corner store and debit a bottle of water... the store can actually lose money on that transaction. Larger chain stores can easily absorb these costs and tend to get the better 10¢ rate from the banks. Would you personally be willing to pay the cost for the bottle if water, plus the $1.50 debit fee from your owner run corner store? It would likely put a lot of owner operated small businesses at a huge disadvantage.