The Purpose of Paper and Coin Money

[civ_king]

By all means, go ahead and give banks veto power over any and all commercial transactions. Too important to fail in a whole new level!

Why do people keep missing that the single most important thing about any institutional arrangement is not efficiency, but the distribution of power caused by the arrangement?

someone else gets it

 

[Tani Coyote]

Strip clubs, what am I suppose to do, swipe my card at the door to get "club notes" that the stripper redeems with the cashier for 20s at the end of the night?

Sounds about right. Or we can just use checks. Whichever.

Who would certify the authenticity of your sheet of paper, and the anotations of how much money remains? A store wouldn't want to handle their kinds checks without trusting that authority. Cash is certified by the state, Cards are certified digital comunication with the bank. Checks are not trusted for many transactions because they may bounce.

Hmm. Bad idea indeed. Sounds like it's a choice between checks and cards.

But privacy will be an issue for some... but then again, I don't think catering to every concern is good policy, even if it's in the majority.

By all means, go ahead and give banks veto power over any and all commercial transactions. Too important to fail in a whole new level!

Why do people keep missing that the single most important thing about any institutional arrangement is not efficiency, but the distribution of power caused by the arrangement?

None of this is a problem provided a democratic government wraps tight chains around the throat and major arteries of financial institutions and can easily cut off the flow of air and blood if the need should arise. The people in turn wrap their chains around the government.

 

[Dann]

The purpose of paper bills is to get stuck in your pants pockets, get forgotten by you, then washed to a soggy mess when you dump said pants into the washing machine.

The purpose of coins is to weigh you down all day, then get dragged out and spilled all over the ground when you fumble for your keys in the dark with your clumsy gloved hands in winter.

 

[aimeeandbeatles]

Paper and coins are nicer to look at, at least. Most of them.

Also, what about a person who wants to open a small business? The equipment to set up may be out of their costs. Or if you want to buy something privately at a yard sale.

 

[Neonanocyborgasm]

Because barter is far less convenient.

 

[Elta]

Way to read the thread before commenting champ.

 

[aimeeandbeatles]

Because barter is far less convenient.

Did you read the OP?