$$$$$$ REVISITING CREDIT VS DEBIT $$$$$$$

A couple of weeks ago I proposed an idea to do away with currency and credit cards. I have been convinced by my friends that we will always need currency but if we ended the credit card usage and went to debit cards people would not be spending beyond their means. This move, though, would probably send us into another recession because buyers would stop buying if they had to pay directly from their checking accounts. It would be an adjustment but over time I'm sure we could make it work. This idea will get me off of the tip dependent workers hit list but onto the banks list. Why do we think that we deserve something that we cannot pay for. It has been an ideology started with the Diner's Club Card just because some fellow forgot his wallet at home and couldn't pay for his dinner.In 1949, Frank X McNamara went out to eat with two of his friends. At the end of the meal, McNamara reached into his pocket for his wallet so that he could pay for the meal (in cash). He was shocked to discover that he had forgotten his wallet. To his embarrassment, he then had to call his wife and have her bring him some money. McNamara came up with a new idea - a credit card that could be used at multiple locations. What was particularly novel about this concept was that there would be a middleman between companies and their customers. In 1950, McNamara started a new company - the Diners Club, which was going to be a middleman. The Diners Club was going to offer credit to individuals for many companies (then bill the customers and pay the companies). That one incident has blossomed into a multi-billion, nearly a trillion dollar industry. That is money that is, for the most part, fiat money (a promise to pay). You don't have it, they don't have it but you have their goods and services and they have your promise. Truth be told I have 2 credit cards and no debit cards. I think it is more of a bookkeeping issue with me. I will look into getting on the debit card wagon. Come and join me.