Senator John Fetterman Pushes Against Cashless Businesses
Senator John Fetterman, a Democrat, is voicing strong concerns about the rise of cashless-only businesses. It’s a pressing issue not just for him but for all small business owners and working-class Americans. Everyone needs to stay alert about the potential consequences.
As someone who has worked in financial planning and entrepreneurship, it’s clear to me that transitioning to a completely cashless society would be quite inconvenient. It’s more than just an inconvenience; it risks widening the wealth gap, leaving millions out of everyday transactions, and putting local businesses at a disadvantage.
Fetterman isn’t just making empty statements. When he asserts, “It’s simple – it’s fiat currency. If you accept money, you have to accept all the money,” he’s really advocating for those Americans who face discrimination for wanting to use the cash they’ve earned.
The Impact of Cashless Policies
Take a moment to consider some statistics:
- 5.9 million households in the U.S. are unbanked, according to the FDIC.
- Another 18.7 million people have bank accounts but rely on check cashers, prepaid cards, or postal money orders.
- About 13% of Americans primarily use cash for purchases.
- Almost 40% don’t have the ability to cover a sudden $400 expense.
When businesses refuse to accept cash, it tends to send a message that certain groups—particularly the elderly, low-income individuals, and minorities—are unwelcome. As Fetterman put it, “You can’t discriminate against people just because you don’t have a credit card or smartphone.”
The Push for a Cashless Economy
This movement towards a cashless economy seems heavily influenced by tech elites who might be out of touch with everyday American life. Doesn’t it get frustrating when you’re faced with guilt-inducing prompts on tips? It’s not just about convenience; it’s about having the ability to pay with cash for simple things like lunch or medication.
For many, cash is not just a preference; it’s essential.
Implications for Businesses
From my perspective, working with business owners regularly, going cashless can be detrimental. Here’s why:
- Swipe fees diminish profits: Card transactions can incur fees between 1.5% and 3.5%. For sectors with tight margins, that’s a significant loss.
- Impulse spending decreases: Studies indicate people tend to spend more thoughtfully when using cash, which can benefit both consumers and help curb reliance on credit.
- System outages kill sales: In the event of power failures or internet issues, only businesses that accept cash will remain operational. In emergencies, cash remains king.
- Customer loss: Many elderly individuals and lower-income families still rely on cash. Excluding them isn’t good for business.
Concerns About Privacy
Digital transactions leave a trail. Personal data, spending habits, and locations are collected and monetized by large tech firms and banks.
In contrast, cash transactions offer a level of privacy. There are no monthly statements or tracking algorithms involved, allowing for more personal freedom. The more we move away from cash, the more we open ourselves up to control from institutions that profit off our transactions.
Fetterman’s Proposed Legislation
Cities like Philadelphia, San Francisco, and New York have already begun banning cashless retailers. Now, it’s time for a broader change. Fetterman’s proposed federal laws include:
- Every physical store must accept U.S. currency.
- Imposing penalties for non-compliance.
- Allowing exceptions for online-only or specific advanced federal locations.
It’s not about resisting progress but ensuring inclusivity. Fiat currency should reflect that it encompasses all forms of currency.
Final Thoughts
When we let cash fade, we may lose a part of our financial autonomy. Dependency on banks and apps could increase, and these institutions might dictate access to our own money.
Fetterman has struck a chord here. If you care about fairness, privacy, and keeping local businesses accessible to all, it’s essential to support this movement.
Cash isn’t merely a form of payment; it symbolizes financial freedom, and it’s worth defending.
