Have any of you gone shopping for things when you have no paper money on you? It's so much easier to write a check, swipe a credit card, even a debit card. If paper money is eliminated, sure it's less to deal with, but I think people will start spending their cash and draining their savings. Just look at credit cards. Before credit cards, credit problems didn't exist. You could only spend the money you actually had. Now, if they eliminate paper money in exchange for cards storing credits, people will just draing their cards so fast without thinking. They'll put more on them, then drain them again. It's great for the economy, but do you think we're really ready for this kind of responsibility? The amount of credit card debt says no.
You're absolutely right! And before cars existed, traffic accidents didn't exist! Before space flight, shuttle accidents didn't exist!
People still had problems with money before there were credit cards; the problem may have been exasberated because of the availability of credit and people (like me) spending money that they don't have, but the problem of overspending and spending money that they didn't have has been around for ages, man.
Yes, but cash is something muc more tangible. You can count it as it leaves your hands, whereas with cards, it's one lump sum. Sometimes people don't even check the total on a bill when using a credit card. I know I've been guilty of this. I didn't check a receipt and I was charged twice for the same item. It's a case of what sociologists call mindlessness vs mindfulness. We are much more mindful when when we deal with cash as opposed to cards and credit.
The flipside of this is of course that the rise of credit was excellent for the economy and (excluding people who blew the lot and went bankrupt) quality of life. In countries without functioning credit systems, only people with access to large amounts of cash can buy houses, cars etc and this increases divisions in the society.
Perhaps the end of paper money will have similar positive effects; it will make robbery and drug dealing very difficult, for example.
"Be there. Aloha."
-- Steve McGarret, _Hawaii Five-Oh_
No cash = rampant spending (Score:3, Insightful)
Re:No cash = rampant spending (Score:1, Insightful)
"Before credit cards, credit problems didn't exist."
You're absolutely right! And before cars existed, traffic accidents didn't exist! Before space flight, shuttle accidents didn't exist!
People still had problems with money before there were credit cards; the problem may have been exasberated because of the availability of credit and people (like me) spending money that they don't have, but the problem of overspending and spending money that they didn't have has been around for ages, man.
Re:No cash = rampant spending (Score:3, Insightful)
Credit problems (Score:1)
Re:No cash = rampant spending (Score:1, Flamebait)
Ever hear of debtor's prison?
Come to think of it, maybe a similar idea should be (re)instituted for people with outstanding credit card debt...
Re:No cash = rampant spending (Score:1)
Perhaps the end of paper money will have similar positive effects; it will make robbery and drug dealing very difficult, for example.