Ôªø Theory Of A Cashless Society

Black Market Effect

In recent years illegal immigrants have been a major issue. With the all too familiar Wal-Mart scandal a couple of years ago, working-class Americans are fearful for their employment. If these illegal workers could not be paid in cash they would have no real draw to make them attractive to American employers. If they were paid on record they would have to not only be citizens, but also be paid within the minimum wage laws established within the state.

The complete elimination of cash would also bring about a huge reduction in crime. In 2003 there were over one thousand violent crimes committed in Gainesville, Florida (about 1 per 100 people); in many of which the victims were assaulted for the money they had on them, whether it be by the homeless or self-proclaimed criminals. If there were no longer any cash, there would be no reason for such crimes to occur: what's the utility of a robbery if there is no benefit and severe consequences for the action?

In addition, drug dealers and other areas of the black market would take a severe hit in business. Since they could not accept cash there would be no way to hide the illegal income from tax authorities except for elaborate money laundering or fronts for their business, all of which would make the individuals suspect for a federal investigation in no time.

The governmental savings on such a crime reduction would be enormous, and with the near elimination of tax fraud, since all income would be contained in bank accounts with an itemized income and purchase history, there would be increase in the government's budget and efficiency creating a better environment for everyone involved.

Unfortunately, not only crime would be eliminated. Without cash, under the table jobs would be nearly fruitless. Everyone from waitresses to the neighborhood babysitter would have to report their income and pay their taxes on it. Though their jobs wouldn’t be altogether worthless, the pay would reduce noticeably.