U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
View Poll Results: Should the US get rid of the penny?
Yes 79 65.83%
No 41 34.17%
Voters: 120. You may not vote on this poll

Reply Start New Thread
 
Old 11-13-2011, 06:35 AM
 
Location: Maine
2,349 posts, read 1,580,609 times
Reputation: 4200

Advertisements

Quote:
Originally Posted by HappyNewMe View Post
ahem... why not just learn the tax % in your state?
and, usually not too hard to figure a rough amount of tax for the final amount, instead of figuring out each time for each item
It's not that easy with a lot of items and when some of the items are not taxed like at the grocery store, also I think some things like precooked food are charged at a different rate than other items. IE if you buy a live lobstah at the grocery store it is not taxed but if they cook it for you you have to pay the 7% restaurant tax.


bill
Reply With Quote Quick reply to this message

 
Old 09-06-2018, 05:06 PM
 
9,064 posts, read 9,217,240 times
Reputation: 4665
Quote:
Originally Posted by Trimac20 View Post
When I went to the US I was much inconvenienced by the fact that they still used 1 cent coins/pennies
We got rid of 1 and 2 cent coins in the early 90s
Although Australia abolished the small coins in 1992, and Canada since May 2012, the major currencies, the Euro, US dollar, Japanese Yen, and British pound have kept the one cent coin.

But the huge difference is that most countries don't produce so many coins. The total Euro production for 16 years from 2002 to end of 2017 is 34 billion one cent, 26 billion two cent, and 20 billion five cent coins. In contrast the USA mint produced 8.6 billion pennies in 2017 alone.

Quote:
Originally Posted by Trimac20 View Post
they expected you to pay exact change!
I think this is the core problem. The USA could probably get by with a lot fewer coins (like Europe) if they didn't expect exact change so often.

Consider that the Euro Area and the USA are roughly the same population. The Euro Area increased circulation by 5 billion coins in 2017 in eight denominations, (€0.01, €0.02, €0.05, €0.10, €0.20, €0.50, €1.00, €2.00) and the USA produced 8.6 billion pennies.

The Japanese have a penny also, and they hardly mint any since it is so tiny (1 gram) that it floats on water. The UK minted 90.8 million pennies in 2017. So although USA is over 5X the size of UK, it produces 95X as many pennies.

That is a crazy mismatch.

Last edited by PacoMartin; 09-06-2018 at 05:30 PM..
Reply With Quote Quick reply to this message
 
Old 09-06-2018, 05:19 PM
 
9,815 posts, read 13,883,984 times
Reputation: 10707
We used to make very cool looking jeans buttons out of 1 cent coin back in ol country.
Reply With Quote Quick reply to this message
 
Old 09-06-2018, 06:13 PM
 
Location: Gilbert, AZ
3,003 posts, read 1,694,053 times
Reputation: 2945
Continuing to make pennies is an incredible waste. Just during my lifetime price inflation has increased the cost of things more than 5x, and probably closer to 10x. As a kid I remember a new compact car being advertised for $1999, and I remember first class postage being six cents. Somehow we managed to get by with the penny being the smallest unit back then. Today's nickel has less buying power than a penny had when I was a child.
Reply With Quote Quick reply to this message
 
Old 09-06-2018, 08:18 PM
 
9,064 posts, read 9,217,240 times
Reputation: 4665
Quote:
Originally Posted by hikernut View Post
Continuing to make pennies is an incredible waste. Just during my lifetime price inflation has increased the cost of things more than 5x, and probably closer to 10x..
The government thinks the inflation has been 5X since Aug-Sep 1974, and 10X since December 1950.
Since I was born in August 1957 inflation factor is 8.9X.

In Sweden the smallest coin is worth 11 cents. They had a coin worth half that much but it was no longer legal tender as of September 30, 2010 although remaining coins could be exchanged at banks until the end of March 2011. The coin that was the equivalent of a US penny was phased out in 1991, about the same time as Australia stopped minting the penny and two cent coins.

Smaller countries can no longer afford to print their own currency or even mint their own coins. They tend to contract the work out to firms in other countries. Sweden only has 10 million people. It sharpens the focus considerably if you have to pay a company in another country more money than the coins are worth.

In the USA most people know that the mint produces the penny and nickel at a loss, but they tend to shrug their shoulders and continue to fill jars with pennies. In the last 8 years we have produced 173 pennies for every man woman child and baby in the USA. You would have to go back to 1982 to find a penny that was Bronze without Tin instead of Copper-plated Zinc. So even the stupidest collector has no reason to keep pennies made after 1982.

By all logical argument if we were careful with them we should have enough pennies in circulation to last until doomsday and we shouldn't need anymore.
Reply With Quote Quick reply to this message
 
Old 09-06-2018, 08:27 PM
 
Location: Western Washington
7,763 posts, read 7,538,055 times
Reputation: 13479
Of course we should get rid of the penny. It is essentially valueless.

For those people concerned about how to purchase something that comes to a price ending in 5 or 0, there is this simple thing called rounding. It works really well. Sometimes you come out a penny or two ahead, other times you lose a penny or two. At the end of the month, you are still up only a penny or two, or down a penny or two. Insignificant.
Reply With Quote Quick reply to this message
 
Old 09-07-2018, 04:31 AM
 
11,891 posts, read 14,355,740 times
Reputation: 7526
Stop minting them for circulation but keep producing for collectors who are willing to pay a "pretty penny" for them. It just makes "cents."
Reply With Quote Quick reply to this message
 
Old 09-07-2018, 11:39 AM
 
Location: Gilbert, AZ
3,003 posts, read 1,694,053 times
Reputation: 2945
Quote:
Originally Posted by PacoMartin View Post
In the USA most people know that the mint produces the penny and nickel at a loss, but they tend to shrug their shoulders and continue to fill jars with pennies. In the last 8 years we have produced 173 pennies for every man woman child and baby in the USA. You would have to go back to 1982 to find a penny that was Bronze without Tin instead of Copper-plated Zinc. So even the stupidest collector has no reason to keep pennies made after 1982.

By all logical argument if we were careful with them we should have enough pennies in circulation to last until doomsday and we shouldn't need anymore.

I've read that the U.S. Mint spends about $50 million each year to make pennies. Of course that's not even one drop in the proverbial federal budget, but it's still a waste of money IMO. They mostly end up in jars, landfills, sewers, etc. Most people will not even bother to bend over and pick them up... it's not worth the effort.


I think it would be fine to have the dime be the smallest coin that's minted.
Reply With Quote Quick reply to this message
 
Old 09-07-2018, 12:02 PM
 
17,605 posts, read 12,197,156 times
Reputation: 12821
We should get rid of pennies and nickles and convert 1, 2 and 5 dollar bills to coins
Reply With Quote Quick reply to this message
 
Old 09-07-2018, 12:10 PM
 
Location: The Berk in Denver, CO USA
13,112 posts, read 18,707,927 times
Reputation: 20399
I really no longer care.
I use cash about 3 times a year.
The overwhelming part of my spending is with plastic or Apple Pay.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top