Transcription
If you have a $50 bill and I give it to the barber for my haircut, and then he goes and buys groceries with it from the grocer, and the grocer goes and gets his car washed, $50 goes from place to place. And after 20 or 30 transactions, the $50 bill belongs to somebody, and it's worth $50.
Whereas, if I pay by card, 1.5% goes to the bank. And then if he takes the money I've given him and pays for the groceries, 1.5% goes to the bank. And after the groceries have been paid for, when he goes to get his car washed, 1.5% goes to the bank. So after 20 or 30 transactions, $50 is gone; the bank has it all. I think that's why they're so desperate to get rid of cash. Interesting. [Music] The basics of Economics, right? When you kind of see the cycling, he's not even talking about taxes; he's just talking about it going and, you know, transferring from person to person to person. Think about adding taxes on the taxes I paid, and then I give you the money, you pay taxes on that, and then that tax cycle keeps going. It's a very interesting slippery slope of eventually sitting there and saying, "What the hell happens to the money?"