More specifically, cash — coins and paper bills are the silent enemy of the poor, with costs often out of proportion with their day-to-day convenience.

On one level, it’s ridiculous to think of cash as problematic; if you have a mountain of paper money, you aren’t exactly impoverished. And at times cash seems like exactly what we need. Saying “yes” to cash can seem like saying “no” to overspending and steering clear of big banks, which means saying “no” to credit-card debt, overdraft fees and Big Brother.

Want to help the poor? Take their money
Want to help the poor? Take their money

In the age of zeroes-happy bank bailouts and household credit-card debt on the order of $800 billion, cash stands for individual empowerment and no-nonsense finances. Right?

So what’s the solution? You probably have one in your pocket. By 2014, about 90% of all adults in the world will have a mobile phone. Technology companies have already shown that you don’t need the latest, flashiest model to send and receive money as easily as a text message and that you can remotely — and securely — access a bank account from the cheapest sort of handheld. Mobile technology will enable the poor to keep their money in the same form that you keep most of your money: digital. Not tomorrow, but soon enough, passing someone a bunch of banknotes or a clinking handful of coins will seem as dated as using a pay phone.
Read more: http://business.time.com/2012/05/22/how-cash-keeps-poor-people-poor/?xid=newsletter-asia-weekly#ixzz1w9zN24KV

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

New Year Spending Hits 12-Year-Low Due to Omicron Fears

The UTCC’s Center for Economic and Business Forecasting (UTCC-CEBF) released its economic projections for the 2022 New Year holiday season, anticipating spending to be the lowest in 12 years.

Beyond Tourism: How Thailand Economy Is Bouncing Back From COVID-19

Kirida Bhaopichitr is Economics Research Director at the Thailand Development Research Institute which advises the Thailand Government on development policies. She argues this is more than just a pandemic bounce for ASEAN’s second biggest economy.

Thailand braces for growth aftershocks from Ukraine war

The coming sanctions against Russia will also likely hurt not only Russia but also the US, the West, and emerging markets, especially if they are highly dependent on the export of goods and service like Thailand.