Allowances from Government not in cash but on to a smart card - would it work?

NIMAN

I think this sounds like a good idea from David McWilliams, giving childrens allowance and other benefits or allowances on Smart Cards that can only be spent in the country.
http://www.independent.ie/opinion/columnists/david-mcwilliams/how-smart-budget-could-really-boost-our-local-economies-29645414.html

Do you see anything wrong with it? I guess it might be costly to implement or control, but at least the premise of it is a good idea.

srsly78

Can very easily barter to get fags etc.

NIMAN

Of course there will be ways around it (no system is 100% secure), but for a lot of cases it would mean that people will be spending the money in the economy rather than putting it in their savings, or spending it on foreign holidays etc which contribute nothing to us.

antoobrien

NIMAN wrote: »

I think this sounds like a good idea from David McWilliams, giving childrens allowance and other benefits or allowances on Smart Cards that can only be spent in the country.
http://www.independent.ie/opinion/columnists/david-mcwilliams/how-smart-budget-could-really-boost-our-local-economies-29645414.html

Do you see anything wrong with it? I guess it might be costly to implement or control, but at least the premise of it is a good idea.

He's a bit late to the party, this has been discussed here several times. Here's one thread: Social Welfare "Credit Cards"

djpbarry

antoobrien wrote: »

He's a bit late to the party, this has been discussed here several times. Here's one thread: Social Welfare "Credit Cards"

David McWilliams repackaging someone else's idea as his own?!? Never!

Thoie

What happens if I want to spend that money in the local economy, but the supplier doesn't accept cards? For example, my plumber, who is fully tax compliant, doesn't have enough turnover to warrant the cost of a portable card machine.

It won't stop me paying for a foreign holiday, because my local travel agent accepts cards.

The theory is fine, but as usual, the devil's in the details.

Nody

NIMAN wrote: »

I think this sounds like a good idea from David McWilliams, giving childrens allowance and other benefits or allowances on Smart Cards that can only be spent in the country.
http://www.independent.ie/opinion/columnists/david-mcwilliams/how-smart-budget-could-really-boost-our-local-economies-29645414.html

Do you see anything wrong with it? I guess it might be costly to implement or control, but at least the premise of it is a good idea.

Not really; it can be bartered for something; the cost per transaction that the banks will charge etc. all make it a bad idea. Instead the money should be spent on something that can't be removed and will benefit the child such as a hot lunch for all children up to 9th grade or free school uniforms etc. Things that you simply can't barter or trade away and that benefits all children accross the board yet will not impact the poor families to much (some impact is to be expected).

goose2005

On the other hand, it makes Irish consumers beholden to domestic business, who charge some of the highest prices in the world.

Mr.Fred

I'd be interested in this just to see where the money is actually being spent.

Is it all being spent on food shopping and the essentials or in the pub/paddy powers.

The_Captain

Would I be wrong in thinking it seems like it's mainly to prevent non-nationals repatriating money?

Gumbo

If i earn €500 per month from work.
If i earn €140 per month from Child Benefit.

My total income is still €640 per month.

If i am saving for a holiday, it doesnt matter what hand i pay for the holiday with, it still comes out of the same wallet/income.

I dont get these benefit cards thread, and thats before the cost to implement,over see and ongoing issues.

Nody

kceire wrote: »

I dont get these benefit cards thread, and thats before the cost to implement,over see and ongoing issues.

Put on the "ebil foreign devils steal our benefits!!1" glasses and you'll understand them.

Of course the fact that the amounts actually sent outside this country are tiiiiny don't matter because it's clearly a key fight to get those 20 Million spend locally (instead of fixing things such as work conditions, minimum pay, competition in energy market etc. that you know would actually have an actual impact to the Irish economy and people's chance to get a job) feel good cause that's popular to rally around; another version of "tax the rich" with a different target for populists to drum up noise about.

This also of course exclude minor details such as the chances it would be allowed under EU law are slim to none (free flow of goods, people and services makes a social benefit card only working in Ireland most likely illegal).