San Francisco Review of Books: The Economist Who Wants to Ban Cash

Introduction

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Harvard professor and former chief economist at the International Monetary Fund, Kenneth S. Rogoff, has recently published a book titled "The Curse of Cash," in which he argues for the banning of paper money. His main justifications for this proposal are 1) to curb criminal activity and 2) to enable central banks to implement negative interest rates. However, his arguments have been met with a great deal of criticism and concern. In this article, we will examine Rogoff's views and evaluate the potential implications of a cashless society.

The Case Against Cash

Rogoff believes that banning cash would make it more difficult for criminals to engage in illegal activities such as drug dealing and hiring illegal workers. He also suggests that a cashless society would make it harder for individuals to evade taxes and participate in the black market. However, many argue that these justifications are overly broad and encroach upon individual privacy and personal freedoms.

The Role of Central Banks

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Rogoff's second argument for banning cash is to give central banks greater control over interest rates by allowing them to push rates into negative territory. However, there is a significant debate over whether central banks should have such authority. The history of central bank manipulations shows a decline in the value of controlled currencies and occasional hyperinflations, which raises concerns about further extending central bank control.

Privacy Concerns

Rogoff's cash ban proposal has raised concerns about privacy invasions. A cashless society would inevitably increase government tracking and control over financial transactions. Despite warnings about these tracking evils, Rogoff dismisses such concerns and continues to advocate for a cashless economy.

Technological Developments and Tracking

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Rogoff discusses new methods of tracking cash, including embedded chips and high-speed serial number scanners. He argues that even without cash, there will still be ways for governments to trace financial transactions. This raises further questions about the extent of government surveillance and control in a cashless society.

Conclusion

There is a growing concern among many about the potential dangers and implications of a cashless society. Rogoff's book sheds light on the thinking and plotting that is going on in this regard. While it provides a comprehensive summary of the theories and arguments supporting negative interest rates and the banning of cash, it also exposes the potential risks and privacy invasions associated with such measures. The general public must become aware of the dangers posed by this elitist movement and take action to ensure the protection of individual freedoms.

About the Author:

Robert Wenzel is the Editor & Publisher of EconomicPolicyJournal.com and Target Liberty. He is also the author of "The Fed Flunks: My Speech at the New York Federal Reserve Bank." You can follow him on Twitter: @wenzeleconomics and on LinkedIn.

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