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A 4% rise in inflation? Don't you mean a 1% rise? Items are often $1.99 etc...not $1.96 etc, aren't they?
In fact though - I think companies would compete to advertise they'd rounded down.
Possibly (about the companies competing via "rounding down"), however, the penny represents a single basis point within our monetary structure. Doing away with it in favor of figures denominated in units of five would create a 4% 'devaluative' spread.
5 (-6,7,8,9) 10 (-11,12,13,14) 15 (-16,17,18,19) and so on.
Re-standardizing the basis of our domestic commerce into units of five as would attrit four singular units of one before reaching another standard unit of 5. This would represent a devaluation of four intermediary basis points per new standard of five, or, 4%.
(hooray 4 math!)
Given the present toilet-paper status of the dollar, I don't think we should really toss another 4% on top of what we're already dealing with.
Quote:
I'd have thought the dollar would be the "cornerstone" of our currency? The debt we owe China etc is denominated in dollars, not pennies, isn't it?
Oh come on...
The penny is the basis unit of our currency.
All other higher denominations rely on it.
Possibly (about the companies competing via "rounding down"), however, the penny represents a single basis point within our monetary structure. Doing away with it in favor of figures denominated in units of five would create a 4% 'devaluative' spread.
5 (-6,7,8,9) 10 (-11,12,13,14) 15 (-16,17,18,19) and so on.
Re-standardizing the basis of our domestic commerce into units of five as would attrit four singular units of one before reaching another standard unit of 5. This would represent a devaluation of four intermediary basis points per new standard of five, or, 4%.
(hooray 4 math!)
Given the present toilet-paper status of the dollar, I don't think we should really toss another 4% on top of what we're already dealing with.
Oh come on...
The penny is the basis unit of our currency.
All other higher denominations rely on it.
I've got one flaw in your argument. The penny represents one cent. There's a difference between saying that we are going to stop circulating pennies and that we are going to eliminate one cent from a possible transaction cost.
It's entirely possible to retain cents for electronic transactions, where we even deal with fractions of cents for some transactions (think gasoline retailers 9/10ths of a cent practices). Any physical currency transactions would require rounding, where the consumer would most likely take a hit, rounding up when paying and getting rounded down when receiving change.
Yes, do away with it. I am wondering about melting mine down if I can sell the sopper for more than a penny.
fyi, pennies have not been made of copper since 1982! they are now made of zinc. listen to the sound of a pre-1982 penny and a modern one and cmpare the weight of each. you'll notice the difference.
Do away with taxes and make marked prices multiples of nickels or dimes. Or make marked prices in a way that the taxed price comes out to a multiple of a nickel or a dime. I really don't understand why this has never been done in full scale.
Lets get rid of bank checks as well. A bank card is quicker and you dont have to worry about bounce, forge or counterfeits checks any more.
Offer free training for the older population for free classes up to a year on how to use a bank card for shopping and paying bills.
I actually would like to see all paper and coin money to be done away with but things like girl scout cookies, street performers, taxis, etc I could be problematic.
It's entirely possible to retain cents for electronic transactions, where we even deal with fractions of cents for some transactions (think gasoline retailers 9/10ths of a cent practices). Any physical currency transactions would require rounding, where the consumer would most likely take a hit, rounding up when paying and getting rounded down when receiving change.
Lets get rid of bank checks as well. A bank card is quicker and you dont have to worry about bounce, forge or counterfeits checks any more.
Offer free training for the older population for free classes up to a year on how to use a bank card for shopping and paying bills.
I actually would like to see all paper and coin money to be done away with but things like girl scout cookies, street performers, taxis, etc I could be problematic.
Disagree, though I agree that society is clearly evolving towards electronic commerce vs the use of cash money, I believe this has significantly contibuted to the disconnect which has resulted in such poor personal money management and savings rates.
Disagree, though I agree that society is clearly evolving towards electronic commerce vs the use of cash money, I believe this has significantly contibuted to the disconnect which has resulted in such poor personal money management and savings rates.
Absolutely. Studies have shown that people send more on goods when they are using credit or debit cards than when they pay cash. It's one of the tools that Dave Ramsey teaches in his money management system, where people are taught to budget and use cash envelopes for each category of spending.
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