Cash, tax evasion and the black economy.

[tony1851]

The Government has recently launched a consultation on the 'declining use of cash' in transactions.

https://www.gov.uk/government/consu...sion-and-the-hidden-economy-call-for-evidence

This is the thin edge of the wedge; with interest rates at record lows - and some countries on negative rates - it may not be long before the banks here start charging interest on all deposits. That would encourage more people to withdraw cash from savings accounts - hence the Government's concern about people paying cash, and tax evasion.

Ultimately, this could lead to moves to abolish cash altogether (not as far-fetched as it sounds). At that point, Nineteen Eighty Four would well and truly have arrived, because all our transactions would be digital and therefore traceable by the Government.

 

[Brigadier]

A consultation doesn't mean that they have to take notice of any of the responses.

 

[tony1851]

They will take notice of the banks when they make their submissions. The banks would love to abolish cash as all payments done electronically means they could hugely cut costs.

 

[noseall]

I wonder what the fall out would be in a cashless society in terms of the black market?
Would drug dealers have to carry transaction machines?

 

[tony1851]

I wonder what the fall out would be in a cashless society in terms of the black market?
Would drug dealers have to carry transaction machines?

This is the point; the Government would say that abolishing cash and having everything electronic would prevent drug-dealing, prostitution,
blackmail, bribery, tax evasion etc - all on the face of it reasonable outcomes.

But it's not just a case of the 'convenience' of credit- and contactless cards and such like, it's far more sinister
and could ultimately lead to control of what - and where - we spend if every single transaction is digital.

 

[JBR]

I reckon that if everyone uses cash only, the amount of VAT collected would plummet!

If they then outlaw cash, perhaps people would revert to barter.

 

[tony1851]

I reckon that if everyone uses cash only, the amount of VAT collected would plummet!

If they then outlaw cash, perhaps people would revert to barter.

Yes, barter would happen in a lot of transactions, but we would thenbe going backwards to the Middle Ages and beyond.
The whole idea of physical cash was that it simplified transactions, thus enabling more efficient use of resources.

 

[AronSearle]

Meh.

Bitcoin allows you to make untraceable transactions, it's already being used for this purpose.

 

[tony1851]

But then everyone would have to use it?

 

[Whitespirit66]

As usual, we're ahead of the game here in Bristol. We have our own currency, so you can abolish your pound notes if you want to.

http://bristolpound.org/

I think the current exchange rate is 1 Bris£ to 3 pounds carrots or 1/2 half flagon of scrump.

 

[tony1851]

As usual, we're ahead of the game here in Bristol. We have our own currency, so you can abolish your pound notes if you want to.

http://bristolpound.org/

I think the current exchange rate is 1 Bris£ to 3 pounds carrots or 1/2 half flagon of scrump.

But what is the advantage if it won't be accepted anywhere else? It's like gift cards that can only be spent in certain shops.
It may keep some spending 'local', but that's not necessarily the best value.

 

[handyjack]

Would make my piggy bank redundant

 

[Whitespirit66]

As usual, we're ahead of the game here in Bristol. We have our own currency, so you can abolish your pound notes if you want to.

http://bristolpound.org/

I think the current exchange rate is 1 Bris£ to 3 pounds carrots or 1/2 half flagon of scrump.

But what is the advantage if it won't be accepted anywhere else? It's like gift cards that can only be spent in certain shops.
It may keep some spending 'local', but that's not necessarily the best value.

But if your 'foreign' pound is abolished, I bet everyone will want our Bristol money. Bristol would then become the new financial centre of The UK.

 

[terrypin]

I wonder what the fall out would be in a cashless society in terms of the black market?
Would drug dealers have to carry transaction machines?

This is the point; the Government would say that abolishing cash and having everything electronic would prevent drug-dealing, prostitution,
blackmail, bribery, tax evasion etc - all on the face of it reasonable outcomes.

But it's not just a case of the 'convenience' of credit- and contactless cards and such like, it's far more sinister
and could ultimately lead to control of what - and where - we spend if every single transaction is digital.

It wouldn't prevent drug dealing or taking. It would increase card theft and burglary, theyd just trade.

It would, imho, create more of a lawless society.

 

[nickso]

If you wanted to use cash after the abolition of UK cash then you would use the Euro or the Dollar surely.

People are getting lazy, for not much more effort you can still use cash effectively. I still use a lot of cash because of my lifestyle but I can see why boring people only use cards or online payments.