Connect with us

Hi, what are you looking for?

Editor's Pick

The Government Doesn’t Want You Using Cash

Nicholas Anthony

In the Wall Street Journal, I had a letter to the editor published on June 26 regarding the rise of electronic payments and the fall of cash.

In the article I responded to, Oyin Adedoyin pointed out that businesses have been moving away from cash for a variety of reasons. For example, tapping a card can be much faster than counting out change. Likewise, not having to store large sums of cash on‐​site can reduce the risks of theft (both internal and external). However, as I pointed out in my letter, it’s also worth noting how much the government itself discourages cash use.

For its part, the Internal Revenue Service goes to great lengths to avoid accepting cash. Elsewhere, the law requires citizens to report one another when making cash payments over $10,000. Failure to comply can result in a $25,000 fine or five years in prison. Then there is the Bank Secrecy Act regime to contend with—a regime that broadly labels businesses as “financial institutions” and requires them to report transactions as well.

The list goes on, but the point is simple: cash is becoming less common for many reasons, but we shouldn’t lose sight that some of those reasons are decisions made by the government itself.

You May Also Like

Editor's Pick

In this edition of StockCharts TV‘s The Final Bar, available to watch below, Dave celebrates the S&P 500 closing above 5500, laments the lack of market...

Editor's Pick

Gene Healy I’m just old enough to remember when people worried that a then-73-year-old Ronald Reagan was too befuddled to serve after he had a...

Editor's Pick

Clark Packard As Cato trade scholars have long lamented, the United States is much more protectionist than our relatively low average tariffs indicate, and...

Editor's Pick

Amazon (AMZN) has broken out into all-time high territory, closing at $200.02 (above last week’s all-time high mark of $199.84). AMZN stock is firing...