Tag Archives: Money

On Numbers

This week, how numbers are both a universal language and symbols representing deeper meaning.—Click here to support the Wednesday Blog:https://www.patreon.com/sthosdkane


This week, how numbers are both a universal language and symbols representing deeper meaning.


Consider, if you will, what meaning a number holds if unaffixed to an object for calculation or counting? What does six mean if disassociated from the rest of its sentence? Some numbers are recognizable for their meanings due to the broader cultural connotations held by those definitions. A learned reader who sees 3.14 written on a page will recognize that as the first three digits of the value of π, yet without the decimal a Midwesterner will recognize 314 as the telephone area code for the City of St. Louis. Similarly, while 23 holds significance as Michael Jordan’s jersey number to millions if not billions of us who remember the greatest Bull play around the millennium, to others 23 is just another prime number.

Numbers in themselves can only exist beyond the abstract if they account for something. The life is blown into the Music Man’s best known song by the “76 Trombones”; Professor Harold Hill’s exhortation to the people of River City, Iowa would’ve fallen flat if he called on them to raise the funds and enthusiasm for “76” alone. Perhaps the patriotic connotation of that number, 1776 was the year of this country’s birth, might’ve stirred some hearts, but a number alone cannot bring a parent to tears quite as well as hearing their child blow the life out of a trombone for the first time.

It generally annoys me to hear numbers be used with minimal context. I don’t always know what the speaker is referring to when I hear a given number, and in that instance while mathematics may be the universal language the way we use it requires greater linguistic framing. Language can readily transform numbers that otherwise would be subordinated into defined objects of their own. Consider the penny; on the one hand it is merely 1/100th of a dollar in this country or 1/100th of a pound in the U.K. Yet a penny saved is a penny earned, and if Poor Richard’s maxim is to be believed a penny in itself is something beyond its diminutive status in hard currency. The value of the penny has shrunk a tremendous amount in the last century to the point that for the last quarter-century it’s cost the U.S. Mint more to make an individual penny than the value of the penny itself.

The penny is in a less stable place today because of inflation and our society’s transition toward digital currency. How often do you see products priced at 1¢ in stores anymore? With all electronic payments for things, no coins or banknotes are needed to complete the transaction. The unfortunate incident of coming up a few pennies short when paying for something is no longer a problem unless your card is denied. Yet for the cash-users among us losing the penny means they can no longer aim for exactness when paying for things. If a product is priced at $4.99 and you give the cashier a $5 bill you won’t get that penny back. I’d probably shrug it off, but still, I’d feel a twinge of unfulfillment and a residual sense that that shop now owes me money, even if it’s practically worthless. There lies the one great flaw in this plan: the penny is so ingrained in our culture; it’s been one of our coins since independence and even before then pennies go back to Charlemagne’s denarius (thus why in pre-decimal Britain and Ireland the penny was abbreviated d.) The Carolingian denarius of the 8thcentury CE was in turn borrowed from the Roman denarius which was introduced during the Second Punic War (218-201 BCE). So, the penny has been around far longer than most other coins we use here in the United States, and its name transcends this country where it represents 1 cent. The penny still gets used in Britain as the 1 pence coin, there even that word pence is another plural which is synonymous with our pennies.

My photo of the Ha’penny Bridge from August 2016.

In older songs and stories, we still remember when the penny was valuable enough to be subdivided into ha’pennies, or half a penny. At that time, the British penny was worth 1/240th of a pound, in a pre-decimal system that was replaced in 1970 with the current pound-pence system. Dublin’s Ha’penny Bridge is named for the tolls that used to be collected to cross it. Even smaller denominations of the pre-decimal pound such as the farthing (1/4d.), and half farthing (1/8d.) were also minted. Clearly then the penny had more value in the past than it does today. I was struck when I moved to London in 2015 how you could still find goods for sale in the groceries priced less than £1, especially bread. That is almost unheard of in my own country anymore. I think this also speaks to a broader transition in the way we think away from older pre-decimal systems toward ones that work better for computers. After all, the primary method by which we interact with numbers anymore is through our computers who tend to do most all of the calculations for us.

One effect of that shift is that fractions now feel less practical. I was taught fractions in school well before being taught about decimal places in what now feels like one of these pre-decimal holdovers. To an extent I still think in fractions, perhaps thanks to our continued use of the quarter (1/4th) among the coins of the US dollar or the weighing of meat in fractions of a pound. Fractions on their own require that they represent a portion of another number, they cannot exist independently. ¾ is three-quarters of something, yet again here context is key. A musician will look at that fraction and read it as ¾ time, or a 3 beat measure where the quarter note gets the beat. Yet again there: this refers to a quarter note. That musical note may be the default note that gets played, with the ascending and descending scales of note length from that point, yet it still is ¼ of the length of a whole note. I love how in English we’ve mixed Latin and Germanic terms together to describe quarters, halfs, wholes, and such. This word quarter is Latin in origin, coming from the ordinal number fourth in that language: quartus. A quarter then is a fourth of an object.

I remember learning my fractions in school, and I still use them a great deal in my daily life. They’re practical when I know the total number of objects I’m dealing with and when I need to subdivide those objects to ensure maximum efficiency or spread. If I have 4 slices of bread left and I know I won’t be able to make it out of the house for a day or so because of snow, I’ll portion those slices out, so I don’t run out until I have the next loaf in hand. For tangible things that exist in the physical world comparing them as fractions (that is dividing the portion by the whole) helps me understand the numbers I’m dealing with.

Yet again, the quotient produced by that division, the result of that fraction is almost always written in decimals. I think of decimals as a product of the development of the metric system in the late eighteenth century. They are fundamentally more rational, and easier to program into a computer. Rather than asking a computer to translate from the more human fraction one can instead speak to the computer in its own language and let it do its computations faster and more efficiently. Today then, I use decimals far more than fractions. What’s more, each decimal number can exist independently of any other figure. 0.25 is simply 0.25, it’s not inherently a quarter of something else. When I see that price tag of $4.99 in the shop, I think of it as just a hair below $5, and am willing to hand over a $5 bill despite that being worth more than the product I’m buying. If I get my penny back or not is less of a concern, after all in this decimal mindset the penny is almost worthless, so what’s the bother if I lose a few cents here or there? Consider that sentence again though: a penny is a cent, or 1 percent of a larger number, namely $1. Even here when contemplating the penny as 1 cent or $0.01 it is still 1/100th of a dollar. Sure, eventually losing those pennies in every transaction will add up, but it’s going to take long enough that it doesn’t register as a problem for me.

Percentages are another sort of number that’ve grown in importance in my thinking in recent years. We mostly encounter percentages in tipping these days. There’s a tender balance here between tipping a percentage digitally or a whole dollar depending on the initial value of the bill of sale. When doing my own mental math, if I get a rough idea of what 20% of something will be I might decide to round up to the nearest whole dollar when writing a tip on a receipt. Yet those tip screens we see at nearly every business changes the dynamic slightly. Instead of leaving room for that rounding up they offer us the exact sum of 20% of the total bill down to the nearest cent. There’s something lifeless yet efficient about this. This is a number to be sure, yet it represents something human and social that ought to be seen in that light rather than just numerically.Mathematics is the purest language, it’s the one most often looked to as a solution for how we might communicate with other intelligent life who surely wouldn’t know how to speak any of our human languages. Yet all numbers are infused with emotion and have a myriad of deeper meanings than the sum of their parts. In balancing budgets, we could just look at the numbers and cut where seems fitting, yet there is always a human side to every budget line. Each cut is something taken away from someone, a potential line of funding removed that otherwise would’ve contributed to someone’s livelihood and helped them make something new and exciting. Numbers can and do reflect people, and they always have. They can exist in both the abstract as just numbers and the real as representations of people and objects. More often than not, we see them in the latter context. The mathematician is warranted to consider the human in their calculations, lest they clip one cent too many and leave too many of us people without the values we need to survive and thrive in this world we’ve built for ourselves.


Is Cash Still King?

Over the last week, I've been thinking about how much I still use cash, and what that says about my lifestyle as a whole. Guests: Alex Brisson, New York City Elizabeth Duke, Kansas City, MO George Vial, County Donegal, Ireland — Click here to support the Wednesday Blog: https://www.patreon.com/sthosdkane


Over the last week, I’ve been thinking about how much I still use cash, and what that says about my lifestyle as a whole.


One of the chief ways that ordinary people would interact with their government was through the coins or banknotes in their pocket. We get to know the faces on our currency better for that role than for the things they did that got them printed onto dollar bills or Euro coins. Many were probably more familiar with the late Queen because her face was on the currency in the United Kingdom and all the Commonwealth realms more so than in any other fashion.

Yet, in the last five years, my cash usage has dropped significantly from a high around the mid-2010s when I used it more than my cards. Today, when I go to the bakery or when I buy concert tickets, I do so digitally. I prefer to use contactless payments on my phone over any other for the ease of use, and the security of not having to pull out my wallet in public. Still, I realized early on last week that this was a question better answered by more than one mind.

So, to answer this question, I turned to my Patreon supporters (only $5 a month at patreon.com/sthosdkane) to ask them how much they still use cash.

One of my Patreon supporters who agreed to talk to me this week was regular Wednesday Blog film expert, Alex Brisson who offered a few thoughts of his own from his home in New York City.

How much do you still use cash?

SK: When I moved to Binghamton, when I was going out there to go look at an apartment in May of that year, my Dad gave me $50 in $5 bills and said “Go, drive to Binghamton,” we were in Niagara Falls, “go, drive to Binghamton and find an apartment and be back here by tomorrow to catch the train to Toronto.” And that was the last time I ever used cash for tolls. Traditionally, I’d use cash for tolls, taxis, and really small family run Chinese restaurants. So, let me ask you then: how much do you still use cash?

AB: Almost not at all, extremely rarely. Unless it’s an arcade game that only takes cash, or once in a while the street hot dog vendors in New York only take cash, which is a big mistake in my view, and sometimes there’ll be one cart that takes card next to one that takes cash will get all the business. I’m making constant financial transactions; I’m buying things every day. New York City is just a big shopping mall. I use Apple Pay the huge majority of the time, unless a place doesn’t accept it.

SK: Yeah, it’s much more secure than even using your card. You don’t have to pull your wallet out, and also the encryption of the card number helps.

AB: Yeah, and also there are those machines that can steal your card number going around, so Apple Pay is more secure against those, though Apple Pay might be just as easily compromised, I don’t know. Definitely, money has gone from being a physical, gold-backed thing but now money is purely digital.

One of my Patreon supporters is closer to home, and we were able to do an in-person interview. – “Hi, Mom!” – “Hi, Seán!”

SK: How much do you still use cash?

ED: Very little. I carry maybe $20 for an emergency, but I rarely use cash.

SK: How much do you still use cash?

GV: Not as much as I would like to.

That’s George Vial, who spoke to me from his home in County Donegal, Ireland.

SK: So, you would prefer to use it over card?

GV: Compared to using it over card, the inaccessibility of getting to an ATM is probably the biggest drawback. Today, I had to pay a guy working on a car, and to find an ATM that would dispense the amount took two different trips, so I eventually got him the money. It would’ve been easier if he had taken a bank card, but that was the first time I used cash in almost two weeks.

Do you prefer cash over card or vice versa?

SK: So, you prefer cash over card, I get that. When you’re in the US do you use cash or card more than in Ireland?

GV: I use more cash than card in America, and vice versa in Ireland for one simple reason: Euros don’t fit in the wallet, they were never designed for wallets, and the amount of coins over here is too much. If you go out with €100 your trousers are falling down by the end of the day.

SK: Yeah, I stopped carrying a coin purse. The trouser leg didn’t look right with that in there. What do you think are the benefits to your preferred payment method? You talked about a couple of the drawbacks of using cash in Ireland, what are some of the benefits?

GV: The benefits of cash are that you stick to what you have. When you do digital payments you tap your card, while in America it’s still a lot of swiping. Here there are no minimums to how much you can spend by tapping, so you spend more freely, whereas with cash if you have €200 in your pocket that’s how much you can spend.

SK: Do you prefer cash over card or vice versa?

ED: I prefer to use a card or to actually use Apple Pay so I don’t have to pull something out of my bag. Although, at restaurants in the US you have to give them your card and they take it away from you to run it whereas in Europe they run your card for you there at the table.

SK: I’m starting to see more places in the US where they do have the portable card reader that they bring around, or even the big chain restaurants that has the machine at the table that you can play games on and also use to pay at the end.

~

AB: Money has gone from being a physical, gold-back thing, and I guess the gold is still somewhere, and now money is just a number on a screen.

SK: So, the value of the money has gone fully abstract then, in the last 120 years. So, now instead of being valued off gold it’s an abstract concept. So, what do you think are the benefits to your preferred payment method?

AB: Mainly that I no longer carry a wallet. I have my phone and there’s a little pouch on the back where I carry my cards. I’ve consolidated the things that I carry in my pocket, and as a man in New York City your pockets are prime real estate. Another one is the convenience of my phone being my payment method. Unlike cash, it can’t get wrinkled or blow away or you can’t really steal my Apple Pay. It doesn’t have to be replaced all that frequently like a credit card does, and because it’s contactless it’s safer in terms of transmission of germs and things. During the pandemic we realized we’re passing around all that dirty cash. The main people here who use cash are homeless people because they need you to give them cash, but if you don’t have cash on you then you circumvent that, which is kind of a low thing to say. And, also unlike with cash not carrying around a finite amount of it I can access all of my funds potentially, not instantly but nearly instantly if I shuffle things around.

What do you think are the benefits to your preferred payment method?

SK: So, then do you see any benefit to using cash over card?

ED: I suppose if you don’t want your purchase tracked then that’d be a benefit, or if you’re going to a farmers’ market, but even those will take cards. There are a few places that are cash only but they’re few and far between now.

SK: And inflation has impacted that now, because you have to use more cash to buy stuff now. I remember when I was little you could get a candy bar at a gas station for less than a dollar, and now it’s probably close to $2.

SK: What do you think are the benefits to your preferred payment method?

ED: It’s more secure,  if my wallet were stolen I could stop the card immediately, any of the cards I carry. The same cards work globally, so I can travel and not make many changes. It’s the convenience and the security, although I will say back when I carried cash I had a budget for discretionary spending per month. With a card it’s much harder to do that. It’s really easy to spend more with a card.

SK: When I lived in London, I found it was very beneficial to only use cash if I could because I could control my spending, whereas with my card and contactless it was very easy to buy stuff.

ED: It’s something we all need to figure out how to manage our lives now. I spend a lot more time in the bank app on my phone than I used to.

SK: I found that when I went overseas this most recent time in October that I’d get Pounds and Euros out but this time I used my card everywhere, so I never needed to stop by an ATM, and that was bizarre, even going into the Tube in London, like with OMNY in New York, I just used my phone to get in, and that’s a new thing just within the last 5 years. In New York, you used to have the MetroCard instead.

AB: You’re right, because the Apple Pay and credit card transcend borders. You can use it anywhere in the world. You don’t have to convert your cash.

SK: That was a huge realization, because I realized when I got there that I forgot to get cash out, so I started paying for things with my Apple Pay and quickly realized that I wouldn’t need to get cash out at all. I got to Brussels and paid for my first croissant and thought, “wait a second, I don’t need to get cash out here.” Yeah, that was a big benefit to it. Then, do you think cash will fully ever disappear?

Do you think cash will ever fully disappear?

SK: Yeah, so you’re doing the mental math and figuring you’re borrowing from a future paycheck to pay for this. Do you think cash will ever fully disappear?

GV: I know they’re going to try, the banks of the world, but I don’t think it will. All it will do is create more of a digital black market, so it’s everything from the criminal black market to paying all of the little cash transactions of paying the babysitter or paying the car guy which they’ll be able to monitor, so they should just leave cash as it is.

SK: So, cash in Europe it’s coming out of the European Central Bank (ECB), whereas here it’s coming out of the Federal Reserve and the Mint, while when you’re doing a card payment it’s going through Visa, MasterCard, or Discover, or American Express, or take your pick. Do you see a way that it could be problematic that those particular financial corporations would have that much of a role in our everyday monetary transactions whereas previously it was a public enterprise that was managing it?

GV: Oh, yeah absolutely because it’s throwing the control of our money to these for-profit corporations, it’s totally wrong, and we know behind the scenes the amount of charges, there’s a meme going around talking about how to spend $100 locally, yet to spend that $100 digitally the amount of transactions and fees that go on makes it all very convoluted. I’m not a fan of the big companies tracking our money.

SK: Yeah, I absolutely get that.

AB: My immediate answer is that I’m not properly educated enough to truly venture a guess at that, that said it does feel realistic to think that you could have a post-cash society. That feels very feasible in my mind at least. There’s also this aspect that you only print so many dollars, or that you could track that digitally anyway. I bet we’re shipping a lot of gold and huge stacks of dollar bills from place to place, I bet there are people who are spending time counting money. And we’re handing over a lot of our societal things to computers these days, yet this is a logical usage of this.

SK: I only hesitate with that in 2 points: Jackson County, Missouri’s systems were hacked with a ransomware attack, and the systems were shut down for a while. Having all of your money going through computer systems leaves them up to attack in that sort of hack. Secondly, having your money going through a computer system means that every transaction you make is processed by a financial institution like Visa, so they are getting a cut or have some arbitrary control over the transaction. So, does that give them too much power?

AB: There’s also the data tracking aspect of this too. The thing you were saying about how it could be hacked and disappear is true for any form of currency. There’s an episode of The George Lopez Show where his mom keeps all of her money in a safe under her bed and there’s a house fire and all of it burns. So, is there a truly safe form of currency? I think the answer is no, there’s not. You can hope that each version is more secure, at least digitally there’s a record of its existence. So, if your bank gets hacked then there’s a record of what the bank owes you. Digital money then might be more secure. It’s truly hard to say. It’s scary, the new digital world is scary in a general way, I would say, and things are changing so rapidly. The minds of this generation, and all who are alive right now are struggling to keep up with it all.

SK: Do you think cash will ever fully disappear?

ED: Maybe. It’s expensive for countries to print bills or mint coins, I don’t know. I wonder what the percentage of people are that use cash? You can’t use cash at the new Kansas City Current stadium (CPKC Stadium). So, the more places that refuse to take cash the less we’ll see people using it.

SK: Some countries that I’ve heard about that have dropped cash all together, like Sweden, it’s because the Kronor there has so little value that you’d have to use a lot of it. During my four hours at Arlanda Airport in Stockholm, I paid 200 or 300 kr for a burger there at Max’s Burgers, I thought that was a lot but it’s actually around $10. So, will inflation impact how much cash we use?

SK: Because cash is controlled by the Treasury, with card transactions those are all done through the big companies, does that give those companies too much power over our national economy or our global economy if they’re the middleman in every transaction?

ED: I know bank transfers are still monitored by the Federal Reserve. Cash was just the vehicle to exchange for goods and services, right? So, you’re still doing that exchange, it’s just happening in a contactless or a low-contact manner.

Is cash still king? I don’t think so. I could see how it might return to its former position of prominence if we had massive technological failures, yet that seems remote and unlikely. I do agree with George about the need to have better monitors on the financial institutions that house and monitor all of our digital transactions, though. I wonder if the cultural role that cash plays as our symbol of prosperity will change? This, like many questions I consider here on the Wednesday Blog, remain uncertain in their answers.