People with no money can't get credit cards. People with and without credit cards (usually) pay the same price for any given item, and since credit card rewards are payed for by merchant fees, that means that every time someone buys something with cash a percentage of their money is being skimmed off the top to subsidize those who buy the same items using credit cards.
Alex3917|6 years ago
jbapple|6 years ago
I suppose in a microecon 101 model, there’s some elasticity that causes the cost of the fees to be borne partially by the merchants?