I know, boo Facebook posts, but a friend of mine posted this and it’s a curious thought I hadn’t heard before. Thoughts?
https://i.redd.it/94tv375y7hpd1.jpeg
by waffleol70
11 comments
Kroger does this
Personally I’d rather just get a paycheck every 2 weeks.
lots of places do this
Back office banking still charges fees to move money atound. You’d think it would cost near zero since it’s practically automated, but it’s still there…
Transferring money electronically, or even just counting cash and ensuring you have enough on hand in the right size, either cost money or time.
Also, how about your electricity bill or rent being daily.
Depends on the industry
One week of your credit card company requiring you to pay your balance off after each purchase should answer this for you
Cashflow issues for employers
It sounds like a decent idea on paper, but for this to be fair all around, any company you pay monthly/weekly to should be able to get the same treatment. Think of all the subscriptions and bills people have, sometimes 10-20 payments a month go to SOMETHING.
This would consume exponentially more processing power, and any person making 15 payments a month to different entities would now be making 450 payments per month! Multiply that by millions of people and you get huge jumps in processing power and ultimately more energy usage.
What happens if the powergrid goes offline in an area? What happens if a companies servers get hacked, and it takes a couple days to restore backup copies? What if you make a late payment, do you get charged a fee every day you’re late? My point is, it could be too chaotic for money to be floating around at that frequency.
how is this at all related to the economy?
1. Technology isn’t magic. There is a cost to all of the transactions. Just because you don’t pay for the cost of a credit card transaction doesn’t mean it’s not there.
2. It’s not very convenient for people tracking their income. It’s easier to track 26 paychecks a year than it is to track 365. Especially if the money goes to different accounts.
3. Many people don’t wait for payday. They have enough money set aside to miss a few paychecks or pay for an emergency.
11 comments
Kroger does this
Personally I’d rather just get a paycheck every 2 weeks.
lots of places do this
Back office banking still charges fees to move money atound. You’d think it would cost near zero since it’s practically automated, but it’s still there…
Transferring money electronically, or even just counting cash and ensuring you have enough on hand in the right size, either cost money or time.
Also, how about your electricity bill or rent being daily.
Depends on the industry
One week of your credit card company requiring you to pay your balance off after each purchase should answer this for you
Cashflow issues for employers
It sounds like a decent idea on paper, but for this to be fair all around, any company you pay monthly/weekly to should be able to get the same treatment. Think of all the subscriptions and bills people have, sometimes 10-20 payments a month go to SOMETHING.
This would consume exponentially more processing power, and any person making 15 payments a month to different entities would now be making 450 payments per month! Multiply that by millions of people and you get huge jumps in processing power and ultimately more energy usage.
What happens if the powergrid goes offline in an area? What happens if a companies servers get hacked, and it takes a couple days to restore backup copies? What if you make a late payment, do you get charged a fee every day you’re late? My point is, it could be too chaotic for money to be floating around at that frequency.
how is this at all related to the economy?
1. Technology isn’t magic. There is a cost to all of the transactions. Just because you don’t pay for the cost of a credit card transaction doesn’t mean it’s not there.
2. It’s not very convenient for people tracking their income. It’s easier to track 26 paychecks a year than it is to track 365. Especially if the money goes to different accounts.
3. Many people don’t wait for payday. They have enough money set aside to miss a few paychecks or pay for an emergency.