Status of Everything Attachments

[Torvy]

That map is out of date.

Try this one, it is a bit more current.

 

[Torvy]

If you ignore sales tax......

I have a $50.00 bill in my pocket. I go to a restaurant and pay for dinner with it. The restaurant owner then uses the bill to pay for the laundry. The laundry owner then uses the bill to pay the barber. The barber will then use the bill for shopping. After an unlimited number of payments, it will still remain a $50 - which has fulfilled its purpose to everyone who used it for payment.
But if I come to a restaurant and pay with a credit card, bank fees for my payment transaction charged to the seller are 3%, so around $1.50 and so will the fee $1.50 for each further payment transaction or owner, the laundry or payments of the owner of the laundry shop, or payments of the barber and down hill from there. Therefore, after 30 transactions, the initial $50 only $5.00 will remain and the remaining $45 became the property of the bank thanks to all digital transactions and fees.

Funny, but not really true.

The banks use their money to pay employees like any other business and the money keeps rolling through the economy. In fact, the banks use of the money can actually increase availability of cash. Those monies not paid to employees or vendors are loaned to others to reinvest. The bank itself is forced to hold a % in reserve (by the feds). Everything else they must use. Business owners could just stuff some in their 'mattress' and pull it out of the economy.

Your example pretends that money stays in a lump. Some pays employees, some pays creditors, some goes to ownership.

The biggest drag is the taxation as it does little to help the actual economy.

 

[Lineman North Florida]

Self-moderation works, just don't click on it

Post of the day.

 

[TN8Man]

That is incredible.

I asked and recieved a cash discount on a watch at a jewelry store. I won't name either but they are both well known brands and NOT known for discounting.

I don't negotiate price on everything I buy but frequently I do. You won't get it if you don't ask.

Negotiating a price is common practice on certain products.

Requesting a discount because you are paying with cash is a different but related situation and its not something I have seen as a common practice.

 

[jmc]

Could be me but offering cash to buy a car at a dealership doesn't seem to help. I think the salesperson also gets a commission on a finance package.

 

[WM75Guy]

Could be me but offering cash to buy a car at a dealership doesn't seem to help. I think the salesperson also gets a commission on a finance package.

I had the same experience. I ordered a new GMC Yukon yesterday at the dealership. The price is still MSRP unless GM corporate offers a discount, no dealer incentives to reduce the price. Expected to be here in June. I will have to wait till then to see what incentives GM is offering to know the final price.

 

[Jstpssng]

I think the salesperson also gets a commission on a finance package.

I'm quite sure that they do.

 

[MoKelly]

Could be me but offering cash to buy a car at a dealership doesn't seem to help. I think the salesperson also gets a commission on a finance package.

There is a motorcycle dealer here that gives you an extra discount if you finance.

Price is actually higher if you pay cash.

Something is going on for sure.

 

[John0829]

Could be me but offering cash to buy a car at a dealership doesn't seem to help. I think the salesperson also gets a commission on a finance package.

When we bought our Honda CR-V it was made clear to the dealer we were paying cash. They begged us to finance and pay it off at the first installment it saying it would "help" them. I told them they had to help me then by dropping the price even more than negotiated to "help" me "help" them. They would not so I did not.

They finally did admit they do get kick/commission back on every finance they do.

 

[LouNY]

I have gotten a better price a few times by financing and then paying off the note then just writing a check, stupid but who knows. One time it involved GMAC financing it ended up a couple of thousand cheaper to finance with their incentives then pay it off a couple of months later, I think I had to wait 2 or 3 months before I could pay it off and as I recall it was a circus trying to get a final payoff number, ended up having to pay a few dollars over the due amount and wait for the loan to be closed for a refund.