MORE FROM DAN MITCHELL on the war against cash.
I wrote yesterday that governments want to eliminate cash in order to make it easier to squeeze more money from taxpayers.
But that’s not the only reason why politicians are interested in banning paper money and coins.
They also are worried that paper money inhibits the government’s ability to “stimulate” the economy with artificially low interest rates. Simply stated, they’ve already pushed interest rates close to zero and haven’t gotten the desired effect of more growth, so the thinking in official circles is that if you could implement negative interest rates, people could be pushed to be good little Keynesians because any money they have in their accounts would be losing value.
I’m not joking.
Tar. Feathers.