Summary
“We all just got schooled by Rogers on the importance of having cash on hand: Rogers outage shows how the lack of cash is not an easily fixable problem in today’s world of interconnected electronic networks” is an article written by Rob Carrick for The Globe and Mail website on July 11, 2022. Carrick believes the best way for US citizens to guard their finances against crisis is to keep some money in cash.
With a single blackout, clients can no longer pay for their everyday needs with electronic means; thus, they may find it safer to keep a portion of their cash in small bills (around $5). Studies by Carrick show that due to the recent power outages and the changing geopolitical situation, more and more people in the US opt to stockpile cash. Moreover, after a few surveys, Carrick found out that “The average amount was an unexpectedly high $5,069.” (Carrick, 2022, para. 8).
Critical Thinking
I believe that Carrick has stated a strong argument in defense of keeping a portion of money in cash. The author has stated that electronic methods of payment are incredibly convenient, allowing the user to pay for any goods and services quickly in the blink of an eye. On the other hand, it inserts the user into a global corporate nexus, where companies can gather information on customers (Carrick, 2022). Seeing personalized advertisements based on previous purchases may be handy for consumers, but some individuals would still consider it to be an infringement of their privacy.
The usage of electronic payment methods might also be suddenly taken away, given the current state of global turmoil. Not only is this detrimental for the customers, but it also means that businesses are subject to massive losses if they are no longer able to make money transfers due to a power outage. According to Carrick, numerous businesses were cut off from electronic networks as a result of the Rogers blackout, leaving some of them with little choice except to do business in cash (Carrick, 2022). This means that the low amount of available cash is not only bad for the customer but is also bad for companies and, by extension, for the US economy at large.
Critical Reflection
I fully agree with the argument the author of the article provides, and it has changed the way I think about having cash on hand. I now realize that having some cash on hand is helpful for convenience in my daily dealings with other people, in addition to being useful for emergencies. As the author has stated, a person cannot use their debit card or phone app to help out someone on the street (Carrick, 2022). If a friend asks me to lend him some money, making a bank transfer will be unnecessarily complex; it will make more sense to give him the cash money.
Furthermore, I now understand that keeping some of my money in cash will safeguard me from future blackouts and other inconveniences. I can sustain a decent lifestyle with the money I save if a natural disaster knocks out power in my region while I wait for it to be restored. If I do not do that, I may have to rush to the nearest ATM to find kilometer-long lines leading to it. Moreover, I may find it empty of all cash, even if it is still working despite the power outage. To sum up, I can say that Carrick’s piece has made me aware of how vulnerable the electronic payment system is and that I should be ready for any potential mishaps.
Reference
Carrick, R. (2022). We all just got schooled by Rogers on the importance of having cash on hand: Rogers outage shows how the lack of cash is not an easily fixable problem in today’s world of interconnected electronic networks. The Globe and Mail. Web.