For those of you who pay attention to world news you’ve already heard that Italy has implemented a series of austerity measures. One of these measures I find especially egregious:
Measures to fight tax evasion will be strengthened, including a limit of 2,500 euros on cash transactions
What am I supposed to do if I want to buy my friend’s $5,000 vehicle? Since cash is out do I have to wait for them to get setup to accept credit and debit card transactions? Perhaps we’ll have to insert a middle-man such as an auto dealer in order to complete the transaction now. Is the legality of the transaction based on the worth of the object(s) being sold or the method of trade being accepted. If it’s based on the worth of the object(s) this becomes a big deal since all large value transactions between individuals (selling your automobile for example) will basically be illegal as most individuals are not setup to accept credit and debit cards. On the other hand if this is based on the method of trade being accepted (euros in this case) than this isn’t too big of a deal since both parties could agree to transact using something of value like gold and silver.
This austerity measure also assumes Italy’s problems have stemmed from lost tax money due to minor transactions between individuals going unreported. I can tell you right now that’s not the problem. As this isn’t the problem I’m betting money this austerity measure is being put into place so the government can keep and eye on what people are purchasing and use that data in enacting future legislation.