In The Power of Cash: Why Using Paper Money Is Good for You and Society, author Jay L. Zagorsky offers a strong defense of physical currency in an increasingly digital world. Drawing from his extensive research as a Boston University economist, Zagorsky examines the overlooked consequences of a cashless society.
The book highlights several critical issues. First, financial inclusion; approximately six million U.S. households are unbanked, and many others are underbanked. Millions more are unbanked around the world. For these individuals, cash is often the only accessible means of transaction. Eliminating cash could marginalize these groups further. Privacy concerns are discussed. Digital transactions can compromise personal privacy, as they are often tracked and analyzed by corporations and governments. Cash transactions, in contrast, offer a level of anonymity.
Zagorsky’s strongest argument for cash resides with economic resilience. Relying solely on digital payment systems makes the economy vulnerable to cyberattacks and infrastructure failures. Cash provides a backup during such crises. Pro tip: If you don’t have money stored in a safe place for use in case of an emergency, it might not be a bad idea to do so. It may not do much good in a zombie apocalypse, but in case of a hurricane, earthquake, or other natural disaster, cash could come in very handy.
The Power of Cash blends academic insights with real-world examples. The author doesn't advocate for abandoning digital payments outright but emphasizes the importance of maintaining cash as a viable option. He believes that one should continue to use cash regularly to ensure its continued availability and to support a more inclusive and resilient financial system.
MY RATING: 4.5
