How Cash Caps Shrink Shadow Economies

Israel's Cash Law caps transactions at 6,000 shekels for businesses and 15,000 for individuals, with penalties up to 30% of the excess. Greece sets the bar at just 500 euros. These aren't suggestions—they're hard legal limits designed to force activity into the formal economy. This episode explores how cash caps work, from reporting cascades and digital trail enforcement to sector-specific targeting. We examine real post-implementation data from Israel and Greece, the privacy implications, and the hidden costs that land on contractors and customers. What happens when governments criminalize the medium of exchange itself?