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Old 12-03-2013, 07:43 PM
 
11,910 posts, read 14,400,478 times
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Continue minting cents and printing dollar bills, but only for collectors willing to pay enough to create a surplus. Actually, currency of any kind is going out of style. A step toward that happened in Chicago recently, where it used to be the bus or the famous "L" only accepted cash or passes. Now any RFID credit card will do.

Last edited by pvande55; 12-03-2013 at 08:37 PM..
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Old 12-03-2013, 07:53 PM
 
5,721 posts, read 5,248,622 times
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Quote:
Originally Posted by North Beach Person View Post
A note on the half-dollar, they would circulate if people didn't snag and keep them. I'm old enough to remember the Franklin 1/2 dollar being incredibly common in use until the Kennedy came out. That's when 1/2 dollars disappeared.
I don't know about that. They are inconveniently big. It is hard to believe they weren't intended to be a novelty.
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Old 12-03-2013, 09:23 PM
 
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people started hoarding early kennedy dollars bc they stopped making them with silver
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Old 12-03-2013, 09:28 PM
 
1,708 posts, read 1,526,723 times
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Quote:
Originally Posted by doodlemagic View Post
this is referred to as the swiss roundup and it causes inflation. retailers are gonna round up not down so if something was 1.01 its not gonna be 1.00 its gonna be 1.05 so you paid an extra 4 cents. this is gonna happen with everything. it raises prices and causes inflation.

also, you mock the penny but a penny found is more than a penny earned. a penny earned you have to pay taxes on. a penny earned you have to spend money to earn. a penny found on the ground is more than a penny. sure it wont make you rich but its the thoguht process you create when you think this way that makes you value money and in turn makes you spend more wisely
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Old 12-03-2013, 09:33 PM
 
Location: Arizona
5,586 posts, read 4,801,855 times
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Quote:
Originally Posted by KaaBoom View Post
It is relevant. Businesses can and would just love to round off their prices to the next highest five cents. It's the government that needs the pennies for sales tax collection. Unless they are also going to start rounding off sales tax to the next highest five, which I believe would be illegal.

As it is now, a penny of sales tax is collected when a penny is due. If they had to wait until a nickel was due, that would be a major loss of tax revenue.

That is the only reason that pennies exist, and will continue to exist.
I eat at one place that doesn't use pennies. If the bill is $8.97 the cashier charges $8.95. The cents on the bill is for sales tax. It is easier for them to spend about $5 a day than to handle and count pennies. The exact amount of sales tax still goes to the government since it is totaled from all of the bills. The most the owner would ever lose is 4 cents a transaction.
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Old 12-04-2013, 01:53 AM
 
Location: California
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I agree about pennies but not dollar bills.
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Old 12-04-2013, 07:04 AM
 
Location: I live wherever I am.
1,935 posts, read 3,502,083 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?
They should stop minting pennies, for starters. Over 300,000,000,000 (300 billion) pennies have been minted and estimates place around 140-200 billion of them still in circulation. Even on the low end, 140 billion pennies in circulation means that there are approximately 400 pennies for every man, woman and child in America. Does anyone NEED 400 pennies to complete transactions? Some people might save pennies... some might even hoard them if they were no longer minted... but nothing says that minting of pennies can't resume if it were necessary.

Rounding to the nearest nickel wouldn't be so terrible but it would assume that people understood basic math beyond simple addition. Not everyone "gets" rounding, though everyone certainly should.

As for the dollar bill, yeah, get rid of it and replace it with a coin. They do that in Canada and it works just fine... they have a one-dollar coin and a two-dollar coin. I've heard that the useful life of a dollar bill is approximately 1 1/2 years whereas the useful life of a coin is approximately 25 years. Think about this. Dollar bills have dates on them. When was the last time you saw a one-dollar bill with a date of nineteen-anything? I know it's been a long time, for me. I personally don't care that people prefer their dollar bills... they prefer that because it's what they're used to, not because it's better. Eliminate dollar bills and make dollar coins instead, and you'll find people getting used to dollar coins.
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Old 12-04-2013, 03:59 PM
 
Location: All Over
3,971 posts, read 4,212,167 times
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Quote:
Originally Posted by bxlefty23 View Post
no actually they would round to the next denomination in this case being a nickel.
costs of things with tax are already rounded off. when the tax brings someone to a 1.0825 the store charges 1.08 not 1.09.the same thing would happen with the penny being eliminated.rounding in the long run balances out- you won't be paying more for anything in the long run.

we ddnt have 1/10th cent coins 50 years ago, we don't need pennies now.

as for the thought process-worrying about picking up pennies off the street is not going to benefit you at all in the wrong run. using your time to figure out how to make more money and make that money grow exponentially will.
it's amazing how many people who worry about picking up pennies pay tons of money in interest, buy things they can't afford etc.
its not about making a living picking up pennies, the thought is that if you say oh a penny its just a penny it creates a mindset that carries onto well its only a dollar no big deal. its having a respect and value for money. you may think its a just a penny if thats your attitude your going to have less money than the guy who realizes money makes money and you shoudl value it
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Old 12-04-2013, 10:44 PM
 
1,567 posts, read 2,696,003 times
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lol no i'm not gonna waste time time thinking about the dollar or 2 at most i pass up each year by basically ignoring pennies. since i was a kid i've always found good ways to make money and as an adult i've consistently managed to make my money grow, paid no interest and keep taking advantage of free 300-500 dollars offers credit card companies give out for spending money i would already spend.i also find really good deals on most things i buy but at some point it's just not worth worrying about it.

there's being smart about money and then there is just being over the top and ridiculous.not wasting my time picking up or worrying about pennies might cost me one months worth of cell phone bills for the rest of my life.

as for

"the thought is that if you say oh a penny its just a penny it creates a mindset that carries onto well its only a dollar no big deal."

if you're gonna go through life worry about such a miniscule meaningless and worthless amount of money you're going to enjoy life a lot less than you would otherwise. im not saying **** money away on nonsense you can't afford, but if you actually take the time to worry about picking up pennies and actually think they in any way shape or form have an actual impact on your financial well being you're going go through life stressing over every petty purchase and that sounds absolutely miserable to me.

the vast majority of successful well off entrepreneurs have never given a remote crap about picking up pennies and have a whole extra dollar at the end of the year.

if you think i'm bad with pennies you would be horrified at how much money i waste each year not returning bottles for the 5 cent deposit. i mean this year alone if i were willing to wait in line with bums in the second of the supermarket that smells like a dumpster i might have a whole extra 4-5 dollars to my name.with my horrific money management it's amazing I even have a roof over my head.
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Old 12-05-2013, 06:00 PM
 
Location: Victoria TX
42,668 posts, read 71,687,173 times
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Quote:
Originally Posted by doodlemagic View Post
this is referred to as the swiss roundup and it causes inflation. retailers are gonna round up not down so if something was 1.01 its not gonna be 1.00 its gonna be 1.05 so you paid an extra 4 cents. this is gonna happen with everything. it raises prices and causes inflation.

also, you mock the penny but a penny found is more than a penny earned. a penny earned you have to pay taxes on. a penny earned you have to spend money to earn. a penny found on the ground is more than a penny. sure it wont make you rich but its the thoguht process you create when you think this way that makes you value money and in turn makes you spend more wisely
Paragraph 1: Meaningless. The average round-up per transaction is 2c, a total of 10c in five random checkouts. If a person makes an average of one sales-tax-liable transaction every day, the round up would be about $7 a year. On an average household income of $70K, that raises prices by a fraction of 1/10,000, which is not exactly going to race us headlong into an inflationary free fall.

Paragraph 2: Your analogy would apply only to a person who records his penny earned and lists it as income on his tax return. If someone says "a penny for your thoughts" and you tell them and they hand you the penny you just earned (as a professional analyst and advosor), that is diminished in value by taxation only if you declare it as income the following April.

Canada has abolished the copper penny, and consumers have been informed that it is appropriate for the rounding to be either up or down, to the nearest 5 cents, and I strongly suspect consumers will hold the merchant's feet to the fire if they try to round up on 1 or 2.

Last edited by jtur88; 12-05-2013 at 06:26 PM..
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