Cashless Debit Cards: Addressing Socioeconomic Issues

Microeconomics 1
MICROECONOMICS
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Microeconomics 2
Microeconomics
Question 1
The Australian government is initiating cashless debit card as one of the means of
welfare income management intending to reduce the high level of community harm that is
rampant today due to high rate of alcohol consumption and increased rate of gambling. This
type of income management will include having the 80% on the Cashless debit cards and
20% to the recipients' account. Health and socioeconomic are the most significant factors in
our lives. In Australia and most specifically the Southern and Eastern parts of Kimberley,
there is a high rate of social security dependence. Women and Children are the most
vulnerable in this case of social insecurity (Lim, T.W., 2019,pp137). Alcohol and drug abuse
are the sole reasons for the illness and the critical factors for people to contract other kinds of
diseases such as kidney and lung cancer. Gambling also has led to the death of many through
dubious ways such as suicides and other social issues such as relationship breakups and
divorce in marriages. The cashless Debit cards aids in tackling this issue for it restrict the
spending of cash on non-basic things (Kumar, A., 2017, pp 30). Hence, uphold the need to
spend on the essential factors like food clothes and education thus curbing the socioeconomic
issues that might arise.
Cashless debit cards payment has a result to increase in socio-economic and a
reduction in crimes and crises that arise due to the socioeconomic issue, A study in Australia
states that drug abuse and addiction has drastically reduced by over 40% after the
introduction of the cashless debit cards (Bergsten, E.E., 2016, pp 519). Children health and
education have greatly improved for they do not lack the necessities. Cashless debit cards
have led to developing in the living standards of the concerned community for they can to
spend their cash on the most significant factors only (Immordino, G. and Russo, F.F., 2018).
However, this mode of payment has led to counterargument some argue that it restricts the

Microeconomics 3
freedom of spending on the socio-economic issues, it is inconsistent with the standard of the
economic argument. To those who also are not addicted to alcohol or other drugs and
gambling, it also causes a restriction; therefore this mode of payment is inconsistent and bias
compared to the use of cash.
Question 2a
Responsibility and accountability are essential aspects of one's life. They are some of
the ethical frameworks that cashless debit cards possess to the people in Australia.
Extravagates and irresponsible husbands are now able to uphold and cater to the social issues
of their families. It would be of great concern if people using the cashless debit cards were
worse than those who do not use them. The debit card enhances a restriction on expenditure,
where 80% of the cash is to be spent on the essential needs. There is no room for the
withdrawal of such money; therefore, this aspect should indeed make one more responsible
and not being irresponsible. It should improve their ethics on how to manage their finances in
terms of spending and to save compared to them that use cash and have to stipulate their way
of spending.
Question 2b
Some argued that cashless debit cards are of no good to human rights. It violates the
private rights for the holders of the cards. They are supposed to share their information with
the government. This virtue is right for it aids in tracking one's expenditure; however, it is
against privacy (Bielefeld, S., 2018, pp 18) It is also argued that card exacerbates socio and
economic separation. The government assumes that not all the people using cashless debit
cards can be trusted with their own money and when left with money will spend it all on
drugs and gambling. It is right to a percentage of people who are irresponsible and
unaccountable with their finances. However, its virtue does not encompass the whole society.