Should the penny be discontinued?

Quote: 24Bingo

For $1.06, they probably would let you round down...

When it comes to big government and/or big business, I don't go by "probably". I'd want to have the exact terms spelled out before agreeing to anything.

Quote: 24Bingo

Because as is apparent from those trays, no one cares, or should care, about amounts of money less than five cents.

No one would care if it was a one-time expenditure of 5 cents or less, but that's not the case. For example, I make a number of small purchases throughout the day. A cup of coffee here, a pack of gum there, a soda at AM/PM, etc. Someone like me could end up paying an additional 10-15 cents for stuff each day. But even if it's "only" $.10, that's $36.50 per year, which is the same as my cell phone bill. Now, judging by the poll results and by most of the posts in this thread, a lot of you are probably thinking, "Cheapskate!" But I just don't like the idea of arbitrarily shelling out more money for all products when there's no increase in the amount/quality of goods and services. (Yeah, yeah...I know...some smart a** is going bring up inflation and the fact that individual companies raise prices on their own, which is why I said 'arbitrarily' and 'all products'.)

Quote: 24Bingo

You say it's 4% (even though it wouldn't be even at that level)...

Here's what I said:

"If I owe $1.06, I don't consider it "savings" to want to pay $1.06 rather than $1.10 (which is about a 4% increase)."

$.04 is approximately 3.8% of $1.06.....which is about a 4% increase. If my math is wrong, let me know.


Anyway, I know I'm in the minority on this issue, but that's my $.02 (no pun intended).

Quote: Dalex64

The Canadian rounding rules are:
1, 2, 6, 7 cents - round down
3, 4, 8, 9 cents - round up

So, unless you are gaming your multiple item purchases when paying in cash, everyone will end up even.

That sounds like a very fair solution.

Quote: EltonCurtis

Pennies have been a topic of debate for some time. Aside from the sheer expense of the coins, which are actually minted at a loss since they cost more than one cent to make, many consider the coins annoying. Read more at: https://personalmoneynetwork.com

What does your link to payday loans have to do with the penny, Elton? Care to tell us your interest rates?

Quote: Beethoven9th

That sounds like a very fair solution.

It's also common sense. It's what businesses do now when they run out of pennies, it's what's done with fractions of a cent, and it's what's always been done when dealing with amounts below the lowest currency in common use, back to freaking Babylonian times. Businesses aren't going to try to change that to make an amount of money they couldn't give a damn about. That's not greed, just stupidity.

(Even if it weren't the case, for fretting about $40 a year, I think "cheapskate" might be too weak a word.)

Quote: Beethoven9th

$.04 is approximately 3.8% of $1.06.....which is about a 4% increase. If my math is wrong, let me know.

Here's where your math is wrong:

Quote: Beethoven9th

(Expected liability of public ridicule) < 2¢/transaction

Quote: 24Bingo

It's also common sense...That's not greed, just stupidity.

I totally agree, but it looks like you still don't understand my point. If you're naive enough to believe that big business/big government would never do something stupid or something that defies common sense, then I have a bridge to sell you.

Quote: 24Bingo

Here's where your math is wrong:

Witty response, but in this case, 'wit' < 'math'.

Quote: 24Bingo

(Even if it weren't the case, for fretting about $40 a year, I think "cheapskate" might be too weak a word.)

All right, then please send $40 every year to my PayPal account starting this year.

(I didn't think so)

Quote: AcesAndEights

Jesus yes, I hate pennies. I had an idea similar to Paco's: stop making the pennies, and start making nickels in a similar size/composition to the current pennies to get their manufacturing cost under $0.05. I feel like legally they wouldn't be able to make the current pennies worth 5 cents, since they are labeled as one cent. Also, this would unfairly benefit those who are currently hoarding pennies.

To the Wiz and others, yeah the Coinstar machines will give you full value if you redeem for various giftcards, usually including one to the store you are currently in (usually a grocery store). So if you're going there to buy stuff, just dump them in and use the gift card for your purchase. Or get the Amazon gift card, who doesn't shop on Amazon? That's what I did recently. I rolled $52 in coins (I think about 10 or 11 of those dollars were in pennies) and took them to my bank to deposit because I didn't want to pay the coinstars. Then I looked at one of them and saw the full-pay option, and took the balance of my change (that wouldn't make full rolls) and did that.

On a related note, it's interesting that Canadian coins are magnetic and US coins aren't. The teller at the bank took my coin rolls and ran a little magnet along them to make sure I wasn't turning in Canadian coins or slugs. She found 31 cents in Canadian coins (3 dimes and one penny), for which I profusely apologized :).

Don't get me started on the futility of educating the American public on adopting the $1 (and eventually $2) coins. I've begun my own personal crusade. I've started buying these in bulk at banks and using them whenever I can instead of $1 notes. Gotta spread the word.

A lot of banks have those machines for account holders and no fee (Commerce Bank called it the Penny Arcade, not sure if TD still has them). Also I'm surprised that they care to not exchange your Canadian coins, since Canadian currency is worth about the same as US, in fact it was worth more for a while the past few years.

Quote: odiousgambit

If it came to 1.04, only small screwball places would try to round up

Quote: Beethoven9th

I don't understand this comment. If I owe $1.04 at the register, how much am I supposed to pay if there are no pennies?

Sorry, should have explained. I'd like to get rid of nickles too, so I'm for rounding to the nearest dime.

That you can't foresee that rounding down will balance the rounding up ... there's no more to say.

Quote: Beethoven9th

I totally agree, but it looks like you still don't understand my point. If you're naive enough to believe that big business/big government would never do something stupid or something that defies common sense, then I have a bridge to sell you.

Where does big government enter into it? They only make the coins. But even if it were otherwise, even military bases currently round prices to the nearest - not the next-highest - 5¢.

Quote: Beethoven9th

Witty response, but in this case, 'wit' < 'math'.

I'm not trying to be witty. If it even occurs to them to round up, that is literally the calculation they're going to make, and there is no way the two cents are going to come out on top. I literally just bought $8.18 + tax worth of food, from a major corporation, with a 7% meal tax, coming to $8.7524. What did they charge me? $8.75, not $8.76, because that's how the system works. They're not going to change it, and that's why you'll never be paying more than 2.5% for transactions over a dollar.

odiusgambit is onto something good with the point about getting rid of nickels too. These are the two coins thwt are worth less than the cost of manufacture including metal(s).

10c, 30c, 50c sized as dime, penny, and nickel, metalled as brass, nickel, bronze. Evevrything in units of 10 cents.

Nah, way too rational for the Roman Empire of Business.

Quote: odiousgambit

That you can't foresee that rounding down will balance the rounding up ... there's no more to say.

Perhaps because nobody said anything about rounding down. Plus, businesses could also just raise prices up to the next $.05 increment.

Quote: 24Bingo

Where does big government enter into it?

You've never bought anything from the government? I admire you.

Quote: 24Bingo

I'm not trying to be witty.

Good, now let's recall the exchange:

ME: "$.04 is approximately 3.8% of $1.06.....which is about a 4% increase. If my math is wrong, let me know."
YOU: "Here's where your math is wrong: (Expected liability of public ridicule) < 2¢/transaction"

Sorry, but that doesn't prove that the original statement is wrong. Rather, it was a silly attempt at humor.

Quote: 24Bingo

why you'll never be paying more than 2.5% for transactions over a dollar.

Well there you have it. 24Bingo on the WoV forum said it will never happen. Therefore, it won't!

Some people have suggested that there shouldn't be any coins are banknotes below $5. All transactions below this level can be handled by some combination of magnetic cards, smart phones, and or current day credit cards.

Considering the huge cost of making coins and dollar bills, transporting them under security, machines to make change, carrying them around, replacing worn out $1 bills, etc. The cost is estimated in multi billion dollars a year and is reflected in "cash back" policies of cards like Discover.

You would maintain the freedom of a cash based society, but lose the expense of meaningless coins and dollar bills for small change.

Trying to keep this under discussion? It seems quite clear to me it's the worst of both worlds. How does it "maintain the freedom of a cash based society" to be effectively unable to use cash except in congress with your credit card?