THE CREDIT CARD FRAUD: INFLATION, CULTURE OF BORROWING AND RISING ECONOMIC INEQUALITY

Abstract

The use of credit card has become a fashion and a symbol of social status, but very few people understand the problems related with its use. Credit card is a tool of the practice of fractional reserve banking of today’s banking industry. This paper tries to explore the implications of the use of credit card in specific, and through that the fractional reserve banking in general. It shows how credit card generates inflation, how it promotes the culture of borrowing by discouraging honest living and how it increases economic inequality in the society.Credit card, Fractional reserve banking, Central bank, Debit card, Money, Money creation, Inflation, Borrowing, Economic inequality