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How We Pay is How We Live
by Jack Kittredge
A few years ago Julie and I were visiting Hawaii and stopped by to see the cauldron of the Mauna Loa volcano. I tried to pay cash for the overlook site admission fee, but the attendant said I had to use a credit or debit card. I was a little surprised that I could not use US cash at a US government facility, but whipped out my plastic and got in. The cauldron was quite memorable.
I recall that trip because I just read about a woman, Toby Stover, who tried to visit the national FDR site in Hyde Park in January 2024. She was denied because she insisted on paying with a $10 bill. The park uses a cashless fee collection service and states that it accepts only credit, debit and other electronic forms of payment, such as Apple Pay.
Stover sued. A federal court just turned her down on the basis that she lacked standing – she hadn’t been hurt and wasn’t suffering because of the denial of admission. Judge Timothy Kelly said her injury was self-inflicted.
I was curious enough to do some research about the denial of cash, which I grew up believing is legal tender, by a US agency. What I found, however, was somewhat upsetting.
First, although cash is currently legal tender for the payment of debts, it can be denied for purchases. Thus although you can pay your taxes or mortgage by offering cash, stores can refuse it at the register (and sellers could refuse you the right to pay cash on new contract debt for purchases.)
Second, there is a movement in this country, supported by most large commercial banks and corporations, to move towards a Central Bank Digital Currency (CBDC). It would just take a law making the CBDC legal tender instead of coins and dollar bills. Essentially, we would each have an account with the Federal Reserve as our bank.
The benefits of a CBDC are several:
• Each transaction would leave a traceable electronic record for law enforcement purposes,
• All transactions by any person could be instantly frozen, leaving terrorists without any services,
• All purchases could be rationed by authorities to encourage good and discourage negative behavior,
• Taxation and wealth redistribution could be automatically implemented.
Of course, if you don’t trust the government, these powers could be abused to:
• inhibit dissidence,
• prevent organized opposition,
• reward cronies, and
• penalize critics.
This was evident in the 2022 shut-down of the Canadian truckers’ protest, preventing them from buying fuel and assembling into a caravan.
Given Lord Acton’s observation that “power corrupts, and absolute power corrupts absolutely” I’m for keeping the power of cash in my pocket. Controlling what we buy is too basic to our freedom.
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