Get rid of the penny?

[SC Maintenance]

There is discussion of getting rid of the penny. Apparently it costs 3 cents to make?

Canada got rid of the penny years ago. Many mentioned things no longer seem to make sense (base 5). Suggestion was get rid of the penny and nickel, replace the quarter with a 50 cent piece, and drop one digit, so its now $9.9 instead of $9.99. Its what we do now - 7% sales tax on $1.10 is 7.7 cents, so we call it 8 cents. That makes sense to me.

Another suggestion was let banks pay 2 cents to return pennies in bulk, since most pennies sit in jars in peoples houses. Would you return your pennies if they paid 2 cents? I might just to get rid of them?

What say you on pennies?

 

[Klutch9]

Physical currency still exists?

 

[Propflux01]

Merchants always round up when purchasing, round down when giving you back change.

 

[Klutch9]

On a more serious note, sure why not. In Canada, they just round up (or down?) to the nearest number divisible by 5.

 

[SC Maintenance]

On a more serious note, sure why not. In Canada, they just round up (or down?) to the nearest number divisible by 5.

1,2,6,7 round down, 3,4,8,9 round up. Not sure how they handle a fraction, but I think that infers that a tax of say 2.9 cents would round down? This would always seem to hurt the merchant - but we are talking 1 cent.

 

[Patman]

On a more serious note, sure why not. In Canada, they just round up (or down?) to the nearest number divisible by 5.

They only round it off to the nearest 5 cents when you pay with cash though (which I believe very few people do). Otherwise if you pay electronically you pay the exact amount

 

[RhondaHonda]

I’d be fine with eliminating the penny and even the nickel and rounding to the nearest 5 or 10. I don’t use cash for anything but to pay the cleaning person so it really doesn’t impact me since the credit card figures it out and I don’t balance my checking account.

 

[supton]

Makes sense to me, might as well do away with the nickel too. Can always buy with a card if the pennies matter; cash sales might just have sell in larger lot sizes so as to round up.

 

[dnewton3]

I refuse to get rid of cash. While I don't use cash 100% of the time, it does come in handy for situations I don't want to use my card for, and I believe that using cash is the best way to avoid an all-digital currency system. The dangers of an all-digital currency world are staggering contrasted to the cost of making pennies.

 

[4WD]

Agree, I also like the loonie and toonie instead of paper dollars

 

[SC Maintenance]

I refuse to get rid of cash. While I don't use cash 100% of the time, it does come in handy for situations I don't want to use my card for, and I believe that using cash is the best way to avoid an all-digital currency system. The dangers of all-digital currency world are staggering contrasted to the cost of making pennies.

I am returning to cash more and more as places give cash discounts. No cash discount, I use my 2% back card. Cash discount, I take it. A couple restaurants and the Tienda I frequent give 3%, so its good for both of us.

 

[JavierH19]

I'd much rather they make a cheaper penny. Other countries make a penny smaller than ours some with less thickness as well since a smaller diameter is harder to bend and out of a cheaper metal like stainless or plated steel which is still durable. Modern heat treatments and processes are much better than before so any old rejected ideas should be reconsidered again. The mexican 5 and 10 coin are far cheaper to make, I don't remember where i read it but the mxn 5c is almost a third of the cost but it doesn't feel cheap, if anything it's premium because the stainless steel it's made of always looks beautiful but US pennies corrode to trash in no time. I've never seen a bent one either. I'm against outsourcing but I would be ok with the penny being made in a different country just once. All others will be made here but all coins should get something of a redesign to lower costs. A smaller coin is harder to bend so i think everything can shrink especially the nickel. For now to maintain machine compatibility they should just make all the coins out of a cheaper material but implement a new coin standard for coin machine manufactures to get ready to transition to new physical coin dimensions once the mint starts producing a newer cheaper to make style.

 

[LDB]

To be very much more blunt about it, only idiots advocate doing away with cash. Convert from a penny to a three cent piece. Breaks even on production and keeps things closer when rounding purchases.

 

[Kira]

^^I've felt this way (post #10) for years. You can't "grease the wheels" with electrons.
This goes for the new cash discounts too (post #12).
OMG...a 'thrapence' or a 'tricent' (post #14).

Give a close look to, say, Scandinavian countries which got rid of the Ore (teeny-weeny coins) and see what you can learn.
Old timers told me they call the ores (pronounced oh-rah) "tax coins".

Also, I just thought of this,: How did Italian coinage go? When I was a kid, their coins were aluminum.
They must've had an array of 'real coins' in earlier times. How'd it go there?

edit: Didn't Germany get rid of the single pfennig coin (before the conversion to Euros, obviously).

 

[supton]

Given how worthless one cent is, it would not hurt me if everything was rounded to the dollar—heck those are worthless too.

Getting rid of coins would not have to mean getting rid of cash altogether.

 

[JavierH19]

To be very much more blunt about it, only idiots advocate doing away with cash. Convert from a penny to a three cent piece. Breaks even on production and keeps things closer when rounding purchases.

Better yet cheapen the penny to superior stainless steel that can also be a bit thinner. I have old mexican stainless steel coins that still look brand new.

 

[eljefino]

I refuse to get rid of cash. While I don't use cash 100% of the time, it does come in handy for situations I don't want to use my card for, and I believe that using cash is the best way to avoid an all-digital currency system. The dangers of all-digital currency world are staggering contrasted to the cost of making pennies.

A digital-only currency allows the government to run negative interest rates to "force" you to invest your money. No, thanks.

 

[eljefino]

To be very much more blunt about it, only idiots advocate doing away with cash. Convert from a penny to a three cent piece. Breaks even on production and keeps things closer when rounding purchases.

With the thrent and nickel we could still make change to the hundredth of a dollar.

 

[dvblanch]

Given how worthless one cent is, it would not hurt me if everything was rounded to the dollar—heck those are worthless too.

Getting rid of coins would not have to mean getting rid of cash altogether.

No but it is the first step. Sheepeople are easily led down a bad path.

 

[JeffKeryk]

I never carry change. Folding money only. And use a CC or check.