Some researchers from the University of Georgia believe that if the United States were to erase all paper money completely, it could potentially benefit many Americans.
However, according to these researchers, there are some strings attached to that concept: the government would have to lower some of their imposed taxes.
Their study – appearing in the European Economic Review – says that if America were to transition away from physical currency, the Internal Revenue Service (IRS) would have to reduce or outright eliminate some taxes in place due to less tax evasion.
As Americans know, cash is much easier to exchange without Uncle Sam knowing about it. Whereas all digital and crypto transactions are readily accessible and trackable.
Our analysis of the costs and benefits of proposals to eliminate currency implies that doing away with big bills like $50s and $100s could benefit the average person, even though they like using cash. Less cash means less tax evasion, so the government can reduce other taxes.
Study co-author William D. Lastrapes, the Bernard B. and Eugenia A. Ramsey Chair of Private Enterprise in the Terry College of Business, in a university release
In order to come to their conclusions, the researchers relied upon macroeconomic modeling to forecast what eliminating cash would look like.
This model looks for trade-offs. For example, when Americans use cash to avoid giving truly honest and accurate information on their taxes, this in turn would mean that the government receives less money to fund public services or pay off federal and state debts, according to the study.
Conversely, tax avoidance via cash essentially lowers tax rates for businesses and consumers, which could lead to greater productivity and capital gains.
Obviously the government frowns upon tax evasion in the context of paper money (and all evasion for that matter), but the university implies that this practice can provide a boost to the economy.
Using this macroeconomics model in a scenario where physical money is gone, the forecasts show that Americans would be way worse off. This would mean every cent would have to be reported, which would boost the government but not the people.
The authors of the study make the claim that if the government reduced statutory income tax rates, this would act as counter-balance to the eradication of cash. Their model then concludes that the average American household would actually benefit from going to digital digits on a screen.
However, the study notes that these findings really only apply to the average middle-class family. The results from the model found that Americans on the lower rungs of income would still not benefit – as many of these types of households still rely heavily on cash.
You’re going to have to provide them with some offset. What we’re suggesting is to take cash away but reduce taxes. It turns out this more than just compensates for not having cash, but it can actually make people better off.
My co-authors and I will be the first to admit that our paper does not provide the final word on cash-suppression policies and that more research is needed to be confident in what should be done. But our view is that models like ours that account for many of the unintended consequences of such policies and that carefully measure overall costs and benefits are essential for determining the right path.
The WinePress has noted in other reports that the Federal Reserve is already working on their authorized digital currency, with Congress urging them to do so. The European Union is working on something similar.
This brings up the cryptocurrency discussion (Bitcoin, Ethereum, Binance, Cardano, Dash, DogeCoin, Ripple, Ark, etc.) and their future, as there has been much speculation that they will be regulated and effectively shutdown.
What Will Happen When Cryptocurrencies Are regulated And Banned?
The security debate is also raised. The WinePress has reported on the great potential for power grid outages, glitches, and cyber attacks. Naturally, with digits on screen, they can be erased rather instantly. This exact thing happened in Australia recently.
In September of last year, a 2,000-person survey conducted by Travis Credit Union’s found that almost 60% of Americans do not want to use cash anymore once the Covid pandemonium subsides. Furthermore, it discovered that barely 16% people surveyed carry cash with them, and a third of Americans went cashless due to concerns of spreading and contracting Covid.
These trends reflect evidence cited in a WinePress report in January 2021, as to why Sweden never underwent a lockdown, due to their strong use of digital currencies and biometrics prior to 2020.
The REAL Reason Sweden Did Not Lockdown
AUTHOR COMMENTARY
Divers weights are an abomination unto the LORD; and a false balance is not good.
Proverbs 20:23
Don’t you just love propaganda when you see it? This is the typical problem, reaction, solution, mechanism again. This has more “Agenda 2030: You’ll Own Nothing And Be Happy” written all over it in my eyes.
Moreover, these are more rotten carrots being dangled to inundate people for the coming mark of the beast system.
[16] And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads: [17] And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name. [18] Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.Revelation 13:16-18
The only “benefits” here are for those in control.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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The thing I do not understand (keep in mind I never finished high school or went to college), why people think these places are for “higher learning”. I have never heard of them allowing open discussion on anything. They always force their ways and beliefs on you. They make you pay outrageous amounts of money for a piece of paper, that most people in the field you are looking to get into find worthless, as well as most of what they taught you.
I know that in IT, the vast majority of the people don’t have degrees, or have one that has little to nothing to do with IT. They got into it, because they enjoyed it and started to learn it on their own. That is why I have always said, “Education is pulled, indoctrination is pushed”.
So who cares what they have to say.
Mitch – 1 Corinthians 3:19 For the wisdom of this world is foolishness with God. For it is written, He taketh the wise in their own craftiness.
Good point. They now teach us the worse kind of math now a days.
Illegitimate gain never pays in the end. If they’re such great unbelievers: why do they keep fulfilling that Book? Surely with the unrestrained imagination of all the alphabet soup certifications of ‘upper education’ they could come up with something truly ‘new’…………but nooooooo, their pride & hatred bind & blind them lockstep. The one in the heavens laughs & holds them in derision. Psalms 2&37 KJB
U of Georgia….the home of educated ‘political organizers’ and ballot harvesters. High level mafia & magisterium nicolaitans have clean fingernails & soft hands, too. Not impressed.