• seperator

Sweden wants to know who is hurt by cashlessness

Sweden is having second thoughts about its move toward abolishing cash, according to the Daily Mail.

The nation that reputedly is closest to reaching a cashless state is now considering the harm it might inflict on some of its people.

Young people and the elderly are spotlighted as potential victims of a cashless society.

Swedish authorities are asking for the continued production of coins and paper money for the time being.

Even with a pause, Sweden is much further along the path to seeing an end to the use of coins and paper money than we are.

The Daily Mail article reports that cash transactions comprise less than 1 percent of all transactions in Sweden.

In the United States, the number is 8 percent of transactions.

The European average is 10 percent of transactions involving cash.

Since Sweden is part of Europe, its less than 1 percent figure would have to be paired with a 20 percent usage figure from somewhere else to reach a 10 percent average.

Business and governments are pushing cashlessness for the same reason some want the U.S. cent abolished.

It will save money.

How much?

Well, the story cites IKEA, the well-known furniture seller.

Its business results reflect the 1 percent cash transaction rate, but it says its employees spend 15 percent of their time counting it, receiving it, and sending it to the bank.

Clearly this firm and other retailers stand to increase their profit margins by quite a bit if they can just force us to stop using pesky cash.

Governments, of course, incur the costs of striking coins and printing paper money and then shipping it to the banking system.

No cash at all would reduce these governmental costs to zero, so politicians could spend this money on something else.

The bonus for government is that with cashlessness the Internal Revenue Service could easily construct a complete record of every individual’s expenditures.

With that information in hand, do you think the government would just do our taxes for us to free us from the annual aggravation of filing tax returns?

That sounds like a slippery slope, I know, but if cash is gone, we will already be lying at the bottom of that particular hill.

Perhaps Sweden will identify other reasons why cash should not be abolished before it reaches cashlessness.

Can you think of any?

Buzz blogger Dave Harper won the Numismatic Literary Guild Award for Best Blog for the third time in 2017. He is editor of the weekly newspaper “Numismatic News.”

 

Tags: , , , , , , . Bookmark the permalink.

One Response to Sweden wants to know who is hurt by cashlessness

  1. Vachon says:

    Basic anonymity for purchases I would think would be a top reason to retain cash. We look back negatively on McCarthy’s Communist witch hunts so imagine if he and/or the HUAC had access to our purchasing history in that time? For all we know (and with the example mentioned in mind), the ability to purchase things in cash might be seen as protected speech under the First Amendment or the abolishing of cash could conceivably violate the Fourth Amendment against unreasonable searches.

    What I’ve said is likely far-fetched but stranger things have happened I’m sure.

Leave a Reply