Sociology Blog: Inequality and the Cashless Economy Critical Analysis

This essay critically analyzes Karen Sternheimer's blog post 'Inequality and the Cashless Economy,' focusing on the disparities faced by unbanked and underbanked individuals in a society increasingly reliant on digital transactions. It highlights how the benefits of a cashless system often bypass those without access to banking or digital infrastructure, exacerbating existing inequalities. The author reflects on the relevance of this issue, particularly in the context of developing countries grappling with poverty and unemployment. The essay further explores the power dynamics at play, contrasting the privileged group with access to financial stability and online banking against the lower-income population excluded from these benefits, ultimately arguing that a truly equitable cashless society requires equal opportunities and accessible means for all individuals.

Running head: ‘SOCIOLOGY BLOG’ ASSIGNMENT
‘SOCIOLOGY BLOG’ ASSIGNMENT
Name of the student:
Name of the university:
Author note:

1‘SOCIOLOGY BLOG’ ASSIGNMENT
A Cashless Economy can be defined as “an economic state whereby any forms of
financial transactions are not carried out through money in the form of coins or
physical banknotes however they are performed through the transfer of digital or electronic
representation of money between the transacting parties (Kumari & Khanna, 2017).). The
practice of such transactions has skyrocketed among the mainstream population of the developed
countries, and the developed regions of the developing or underdeveloped countries. While the
practice contributes immensely to the economic development of a society, the advantages do not
provide for the unprivileged individuals who have low or no income living in areas which are
either underbanked or unbanked.
The post ‘Inequality and the Cashless Economy’ by Karen Sternheimer, highlights the
difficulties that the unbanked or the underbanked individuals face due to a ‘Cashless society’. It
explains how the privileges that are enjoyed by many by going cashless or digital, doesn’t really
reach many sections of the society and in fact increases their hardships by making them pay
penalties, for not using the privileges they cannot even access.
While governments and countries are paving the way to let the benefits of such plans
reach every citizen, the journey to the utopian society they are trying to make, is not a cake walk.
The inadequate infrastructure and the complexity associated in going cashless in rural areas
cannot be neglected (Alao & Sorinola, 2015). As such, the cashless transactions which make life
easier for the urbane and industrialized areas leave the rural areas at a very inferior position, in
comparison. As a result, not only do they face difficulty due to lack of access to digital facilities,
but also left more stressed due to no minimum amount of cash in their bank accounts, every
month, they lose more money from the already-scarce money that they make. This creates an
imbalance between the two ends of the group of individuals, the ones who can afford going

2‘SOCIOLOGY BLOG’ ASSIGNMENT
cashless and the ones who cannot. Inequality stems up when individuals do not enjoy equal
opportunities (MacLeod, 2018). A cashless society needs the means to go cashless easily not
create such inconveniences. While those means are easily available to many, many have to face a
lot of problems. Lack of communication, awareness and opportunities creates a clear division
between the privileged upper classes and the lower income groups.
What interested me to the article is its valid point of concern for those who are not able to
revel in the advantages of a cashless economy. The article is also more relevant to me since we
know third world countries face crisis like unemployment and poverty and for people, and for
such an economy it is not feasible to go completely cashless unless some stability of status is
achieved.
The article does not conflict with my viewpoint regarding the theme however, it certainly
offers another viewpoint by showing us the impact of a cashless society on those who are unable
to be benefitted by it (Sternheimer, 2019).
The group that has the power is the privileged group that enjoys employment, stable
financial condition and easy access to online banking and ATM facilities. The ones who are left
out are the lower-income people without access to banks. The article accepts the truth about the
problems of the latter group which is indeed true and should be considered before introducing
cashless schemes to ever segment of the society.
Inequality stems up when individuals do not enjoy equal opportunities and rights. A
cashless society needs the means to go cashless easily and with no side effect. While those
means are easily available to many, many have to face a lot of problems in operating their small
businesses or even buying their basic groceries. On top of that, the frequent penalties that the

3‘SOCIOLOGY BLOG’ ASSIGNMENT
under banked have to pay due to lack of communication, awareness and opportunities creates a
clear division between the privileged upper classes and the lower income groups.

4‘SOCIOLOGY BLOG’ ASSIGNMENT
References:
Alao, A. A., & Sorinola, O. O. (2015). Cashless policy and customers’ satisfaction: A study of
commercial banks in Ogun State, Nigeria. Research Journal of Finance and Accounting,
6(2), 37-47.
Kumari, N., & Khanna, J. (2017). Cashless payment: A behaviourial change to economic growth.
Qualitative and Quantitative Research Review, 2(2).
MacLeod, J. (2018). Ain't no makin'it: Aspirations and attainment in a low-income
neighborhood. Routledge.
Sternheimer, K, (2019), Everyday Sociology Blog; Inequality and the cashless economy.
Retrieved from: https://www.everydaysociologyblog.com/2018/08/inequality-and-the-
cashless-economy.html