The US "Penny": Should it go or should it stay?

Well, countries that use "pennies" anyway.

Australia got rid of the penny in 1992.

Canada got rid of it in 2012.

New Zealand got rid of the penny in 1990, and the five cent coin in 2006.

Netherlands got rid of theirs in 1980.

Singapore got rid of it in 2005.

Why can't we?

 

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....'cause we don't have 'em.
I do believe we have Cents not Pennies Detecto

Now for serious opinions,
As a numismatists' view, it's sad to end a tradition from our founding fathers' time, as the cent celebrates its 220th birthday this year (1793-2013).

As a normal guy's view, it's wasting America's money.

Should I be the numismatist or the normal guy?

 

Guess this is about to become yet another topic about the US cent. Maybe it should be moved to an appropriate forum.

Christian

 

Chris, you'll have to do that, as Tim refuses to take the time necessary to post things into the appropriate forum.

As for the original topic, Tim, did you really need to start ANOTHER "Get rid of the US cent" thread?

The basic argument for keeping:

1) Tradition.
2) Stifle Inflation.

The basic argument for abandoning:
1) Cost.
2) Lack of utility.

You've asked the same question several times before. Rather than posting a new thread, why not just review the old ones?

 

The Penny: On the Outs or Here to Stay?

article link:

http://finance.yahoo.com/news/penny-outs-stay-100000058.html

 

Just because I know you're lazy, Tim, here are four different threads where you said they should discontinue the US cent:

http://www.cointalk.com/threads/discontinuing-of-the-one-cent-coin.214136/#post-1537951
http://www.cointalk.com/threads/if-copper-gets-melted.207102/#post-1451684
http://www.cointalk.com/threads/the-decline-of-us-coinage-design.206751/#post-1447142
http://www.cointalk.com/threads/opi...inage-needs-overhaul-now.204230/#post-1414950

 

Merged the two topics.

Christian

 

I vote for getting rid of the Penny but keep the Cent.

 

Can you please merge all the Detecto "penny" threads?

 

The Unites Stated stopped making the half cent in 1857, due to lack of buying power. Imagine how much more buying power 1/2 cent had back then, versus a whole cent nowadays. There is really no need to produce a coin in this denomination, especially when it costs more than face to produce it. While we are at it we could also replace the nickel with a cost effective half dime, and REPLACE the dollar bill with all the dollar coins currently in storage. Then we could give the half dollar a special one year reverse before retiring that denomination. All of this would take approval from congress, so expect some results in 2048 or so.

 

There are too many people that would cry they are getting ripped off even though the average would include them sometimes getting back a nickel when they should only get 3 cents.

 

The reality is those crying would be correct after a very brief adjustment period. Initially, there will be those who received a nickel instead of 3-cents, but businesses will quickly adapt their pricing models to round up. Why would they round up? Well, because rounding down wouldn't be profitable.

 

Doing away with it would have a slight inflationary effect.

 

Penny should stay ...rounding should be left up to a business if they want to round up/down

 

Why would they round at all? The way it is done elsewhere (but of course this has been said in pretty much every topic about this issue here ) is that prices of single items are not affected: What gets rounded - up or down - is the total, and only the cash total.

Christian

 

Because American marketing graduates tend to be the ones who do the pricing models. That's why we have the strange $24,999 prices instead of $25,000. So, if a product price is currently $0.79, for example, the pricing division might decide to see if $0.80 or $0.90 is seen as a better deal.

 

The deli I go to has set their pricing where everything, no matter what combination, results in having only quarters in change. That's all have in their till unless some pays with cents, nickels, or dimes. The owner says it's a lot quicker and easier to make change.

 

But if you look at Germany and the Netherlands, for example, you will notice that in both countries we have such threshold prices too. It's just that in DE, where 1 and 2 ct coins are still in use, you pay the precise total, while in NL, where I am fairly often, it works differently: You buy three items which cost 0.99, 1.89 and 2.98 - the total would thus be 5.86 (prices include all taxes here, but that does not affect this calculation).

Use cash, and you pay 5.85 - use plastic, and you pay 5.86. Now if the cash total was 5.84, you would still make a 5.85 cash payment but pay "only" 5.84 with a card. All this without any change whatsoever to prices of single items.

Sure, manufacturers and stores may raise their prices, reduce package sizes etc., to make more money or to make up for their own higher cost. But that happens no matter whether you have a "penny" coin or not.

Christian

 

I feel you aren't looking at this realistically. Picture yourself going to the grocery store two separate times.The two total grocery bills are $142.07 and 133.63. In today's world, or the world where we finally hang up the one cent denomination, the consumer and seller here will come out exactly the same. The entire bill gets rounded up or down, not each individual item. And in capitalism, the forces of competition will keep vendors from raising prices for no reason.

 

Fully agreed. After all, that is exactly what I wrote in #15 and in the post you quoted.

Christian