Book's Contents

Contents of

THE POWER OF CASH: WHY USING PAPER MONEY IS GOOD FOR YOU AND SOCIETY

by Jay L Zagorsky

Preface

CHAPTER ONE

Introduction and Overview

Shift away from Cash

Why the Shift?

Key Question – Is the shift good?

The Synopsis: A Dozen Reasons Cash is Powerful

Conclusion

SECTION I

Is Cash Disappearing?

CHAPTER TWO

Is Cash Disappearing? The Case of Spending

Cash Use around the World

Why Do Some Places Use Cash More Than Others

Trends in Paper Money Use

Who is Leading the USA Shift?

Is Cash Still Used for Small Payments?

Conclusion

CHAPTER THREE

Is Cash Disappearing?: The Case of Savings

Trends in Paper Money Holdings

Other Countries

The Changing Mix

What It Means

Conclusion

SECTION II

Cash Provides Society with Resilience

CHAPTER FOUR

How Do Cashless Payments Work?

Communication Disruptions

Electricity Disruptions – Understanding Power Grids

Number of Electricity Disruptions

Environmentally Friendly

Computer Security

Conclusion

CHAPTER FIVE

Natural Disasters Prevent Cashless Payments From Happening

Trend in Natural Disasters

Floods: An example from China

Hurricanes

Fire and Drought

Volcanic Eruptions

Solar Storms

Conclusion

CHAPTER SIX

Paper Money Boosts National Defense

Modern Examples

Counterfeit Money – Destroying faith in the currency

Power

Moving Money

Destroying Faith

Are Transactions True?

Conclusion

SECTION III

Cash Helps People

CHAPTER SEVEN

Using Cash Helps Control Spending

Do People Spend More?

Impulse Control

Visualization

Endowment Effect

The Budget Constraint

Conclusion

CHAPTER EIGHT

Other Reasons Why Using Cash Helps People

Using Cash Saves Money

Using Cash Keeps You Healthier

Cash and Math Skills

Tipping

Nickel and Dimed

Conclusion

CHAPTER NINE

Using Cash Keeps Your Life Private

How Private is Data Collection and Distribution?

Who needs Data Privacy?

Privacy within Households

Spousal and Partner Abuse and Infidelity

Privacy Between Households and Businesses

Households and Businesses Versus the Government

Problems of being Incorrectly Identified

Potential Solutions

Conclusion

CHAPTER TEN

Using Electronic Payments Boosts Prices

Merchant Fees

How Companies Price

Merchant Views

Surcharging and Steering

Custom Pricing

Examples of Custom Pricing

Conclusion

SECTION IV

Cash Helps the Vulnerable

CHAPTER ELEVEN

Eliminating Cash Hurts the Poor

Exclusion from Stores

Reduction in Charity

Legal and Other Solutions

How the Poor Subsidize the Rich

Unbanked and Underbanked

The Unbanked Pay Extra Fees

How Many Unbanked are in the World?

Unable to Pay for a Phone

Conclusion

CHAPTER TWELVE

Cash Helps Immigrants, Refugees, and Tourists

Vulnerable Tourists

Dynamic Currency Conversion

Foreign Exchange Rates and Black Markets

Conclusion

CHAPTER THIRTEEN

Cash Puts Limits on Central Banks Hurting the Elderly

The Power of Interest Rates

Negative Interest Rates

Paper Money Is a Brake

Savings Problems

Cash Limits the Damage of Bank Runs

Real Interest Rates

Conclusion

SECTION V

Cash Is Not Causing Crime, Terrorism, or Tax Evasion

CHAPTER FOURTEEN

Does Cash Make More People and Businesses Victims of Crime?

Fraud, Scams, and Identify Theft

The Amount of Stolen Cash

Cashless Ways to Commit Crimes

Credit Card Crime

Debit Card Crime 

Does the Cashless Society Reduce Bank Losses? 

The Case of Sweden

Conclusion: How to Avoid These Types of Crime?

CHAPTER FIFTEEN

Does Cash Facilitate Corruption, Terrorism, or Organized Crime?

Corruption

Corruption Data

The Case of Sweden

Terrorism

Organized Crime 

Conclusion 

CHAPTER SIXTEEN

Does Eliminating Cash Reduce Tax Evasion?

India’s 2016 Elimination of Most Cash 

The Tax Gap around the World 

USA's Tax Gap 

Electronic Tax Filing 

Inflation Tax 

Can Tax Evasion Be Reduced Without Getting Rid of Paper Money?

Conclusion 

SECTION VI

Control 

CHAPTER SEVENTEEN

Cash Prevents Government Control 

Shutting Off Bank Accounts 

Digital Currency 

Government Control of the Unbanked 

Currency Transaction Reports 

Conclusion 

CHAPTER EIGHTEEN

Can Businesses and Governments Refuse To Take Cash? 

Are there laws forcing businesses to take cash? 

Trying to Pay The IRS with Cash 

Why does the IRS not want cash? 

Conclusion 

CHAPTER NINETEEN

Who is Pushing the World to Go Cashless?

Credit and Debit Card Company Incentives 

Credit and Debit Card Company Growth 

Smaller Credit Card Companies 

Banks’ Incentives 

Government’s Incentives 

High Technology’s Incentives 

Retailers’ Incentives 

Financial Technology Incentives 

Conclusion 

CHAPTER TWENTY

Conclusion: What to Do to Ensure Cash Does not Disappear

Individual Actions 

Collective Advocacy 

Bureaucratic Fixes – ATMs 

Inflation Adjustment For Currency Transaction Reports 

Bring Back Large Bills 

Legislation Designed To Ensure Stores Take Cash 

Sin Purchases 

Other Sin or Vice Purchases 

Year-End Bonuses 

Military Pay 

Mandatory Preparedness for Financial Companies 

The End 


Acknowledgments

Notes

Bibliography

Index