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Old 01-28-2014, 10:38 AM
 
Location: Liminal Space
1,018 posts, read 1,162,589 times
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The sales tax argument is bizarre. Don't people realize that practically every purchase with sales tax is already rounded to the nearest penny? Locally where I live, sales tax is 8.75%. Yep, that's 8 and 3/4 pennies per dollar! A transaction that would come out to a whole number of pennies is a needle in a haystack. Even with a simpler sales tax of 8% you would rarely avoid rounding because prices always end in .99. So if I buy a shirt for $9.99, after adding 8% it's $10.7892. Round to $10.79. This happens millions of times per day and no one seems to have a problem with it.

Maybe there is a psychological barrier with the lowest level of currency being worth "five" of something. I have a simple solution: declare that there are now twenty cents per dollar, and a nickel is worth one cent.

Personally, I started arguing to abolish the penny about 20 years ago. Back then I was earning minimum wage and a penny was worth 9 seconds of my time. Today, a penny is worth 6/7 of a second of my time. Putting it another way, I can't remember the last time I made a cash purchase for less than a dollar. Pennies are worth less than a hundredth of any economic transaction I will ever make. When I am unfortunate enough to get them back in change, I look for a tip jar or donation slot to drop them in instantly. And yes, I have dropped them on the ground or left them on a table before.

I guess if our country cannot be rational enough to stop minting pennies, the problem will eventually get solved indirectly as people stop using cash.
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Old 01-29-2014, 09:43 AM
 
8,716 posts, read 8,919,801 times
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Quote:
Originally Posted by bentobox34 View Post
When I am unfortunate enough to get them back in change, I look for a tip jar or donation slot to drop them in instantly. And yes, I have dropped them on the ground or left them on a table before.
And I'll pick them up off the ground, toss them in a jar, and every year cash them in and go buy myself something nice.

This past year, was $190 worth of useless change I cashed in.
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Old 01-29-2014, 12:16 PM
 
Location: Philaburbia
31,165 posts, read 57,302,589 times
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Quote:
Originally Posted by GJJG2012 View Post
In US some kids just throw away dimes, some even throw away quarters.
You are all free to throw these coins my way. Pennies (and dimes and quarters) make dollars.
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Old 01-29-2014, 01:16 PM
 
18,107 posts, read 16,453,088 times
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I've asked this before and searched it and found very little information on this. But why not mint coins in higher denominations?
Mint a $20 coin the size of an old silver dollar. You have one of those in your pocket and you'd know its there. Make it gold in color like the old double eagles. Those coins would last forever unlike paper money. If you use tungsten it would have the weight of gold approximately. Just like the gold bars in Fort Knox, .
Going smaller, mint a $10 coin the size of a half dollar. There's be no mistaking them for quarters with the size difference and color.
Counterfeiting would either be nearly impossible or maybe it would be easy if done on an international level. But paper currency is also counterfeited that way.
The only reason I see they don't do it is due to the problems it would create controlling the money supply and the problems it would create that would prevent counterfeiting. Having money last longer would certainly cut down on the US mints costs.
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Old 11-08-2014, 06:44 PM
 
Location: Phoenix, Arizona
160 posts, read 181,376 times
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There is currently a petition to get rid of the penny on the White House's website. https://petitions.whitehouse.gov/pet...penny/fTCvcv0N I'd encourage everyone to take 10 seconds to sign it. Change won't happen unless we force politicians to act. It may be worthwhile to send a short email to your political representatives too outlining your support for the abolition of the penny.

The facts are:
  • The government would save over $100 million per year from not minting the worthless penny. Easy money.
  • The transportation of pennies to and from banks and retailers is costly, inefficient and harmful to the environment.
  • Many countries like Australia, Canada and the Netherlands have already gotten rid of their penny.
  • When the half-penny was eliminated in 1857, it had the purchasing power of today's dime.
  • Cash transactions would be quicker.

I'm also in favor of replacing the dollar bill with the dollar coin but let's take the modernisation of our currency one step at a time.
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Old 11-08-2014, 06:51 PM
 
33,046 posts, read 20,720,491 times
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Quote:
Originally Posted by stockwiz View Post
This is something I have personally wanted for years... to eliminate the lincoln cent and round everything to the nearest nickel, and eliminate the paper dollar and have people use the coins instead. They should do both at the same time, so the change drawers at stores won't be affected.

What do you people think? I suspect the resistance to eliminating the dollar has to do with vending machines. As for pennies, I don't see how they are of any use anymore and it costs more to make them than they are worth. I just throw them on the ground when I get them or I'll give them, along with nickels and dimes, to small kids as I pass by them in the grocery store, or set them where they will see them and pick them up. I'm curious what people here think about this?

A nickel now has less buying power than a penny in 1950 and they got by just fine. You're not going to go broke from having to pay 3 extra cents in a transaction.. over the course of a year you might lose 10 bucks and that's a very liberal estimate, probably more like 2 bucks. Whoop de doo.

I dislike dollar bills in my wallet as much as pennies in my pocket. I don't mind dollar coins and would rather dig one out of my pocket for a vending machine than try to stuff a crumpled up bill into one and have it spit it back out half the time. Bills should be for larger transactions, and coins for smaller. The cent has outlived it's usefulness, as has the dollar bill.

Oh, and it would save the government lots of money.

Thoughts?

I'm a big kid and I pick up those pennies on the ground. I would hate to lose a few cents by rounding to a nickel. Why not replace the cent with a new two-cent piece (which actually was minted in the Civil War period)?
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Old 11-08-2014, 07:12 PM
 
Location: Phoenix, Arizona
160 posts, read 181,376 times
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Quote:
Originally Posted by freemkt View Post
Why not replace the cent with a new two-cent piece (which actually was minted in the Civil War period)?
That's replacing a practically worthless coin with another practically worthless coin. A 2 cent piece would still have all the expensive minting and transportation costs of the 1 cent piece. Not to mention it would make transactions awkward as 5 cent can't be divided by 2 cent evenly, meaning we would still need a 1 cent coin! Like I mentioned earlier, the half-penny had the same worth as today's dime when it was eliminated, so there is even a case for getting rid of the nickel.
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Old 11-09-2014, 03:25 AM
 
Location: Orange County, CA
752 posts, read 595,321 times
Reputation: 1188
Quote:
Originally Posted by phenomenon View Post
That's replacing a practically worthless coin with another practically worthless coin. A 2 cent piece would still have all the expensive minting and transportation costs of the 1 cent piece. Not to mention it would make transactions awkward as 5 cent can't be divided by 2 cent evenly, meaning we would still need a 1 cent coin! Like I mentioned earlier, the half-penny had the same worth as today's dime when it was eliminated, so there is even a case for getting rid of the nickel.
I agree with this reasoning against a 2 cent coin.

How about bringing back the two dollar bill in exchange for phasing out the ones? A lot of the design costs can be bypassed since the 1976 version exists, although security upgrades might still be desirable.
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Old 11-09-2014, 03:45 AM
 
Location: Bel Air, California
20,344 posts, read 20,428,723 times
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Quote:
Originally Posted by freemkt View Post
I'm a big kid and I pick up those pennies on the ground. I would hate to lose a few cents by rounding to a nickel. Why not replace the cent with a new two-cent piece (which actually was minted in the Civil War period)?
this is a good idea and for some time now I have been gluing my pennies together to kind of jump start the movement. clerks seem a bit confused but I tell them it's a gov't initiative and they usually accept them. just my two cents.
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Old 11-09-2014, 07:39 AM
 
Location: Wisconsin
7,215 posts, read 7,567,535 times
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I'm in favor of getting rid of the penny, simply based on the fact that they cost more to make than they're worth.

I remember when I was a kid, you would still see occasional gumball machines in grocery stores where you could get a tiny gumball for a penny. Those days are long gone.
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