Finally: we're getting rid of the penny!!!
- Thread starter wetnose
- Start date
Hold on to your 2012 cents, and don't let them get scratched, it will be awhile but they will be worth a lot more than a cent for your Grandchildren or Great-Nieces and Great-Nephews. Heck even order a roll from the mint and then just put them aside.
When I lived in New Zealand they had gotten rid of the penny but still had prices ending in .99. Basically, the total bill was rounded off to the nearest 5 cents. So if you bought a few things ending in .99 it could get rounded to the down to $xxx.x5 or $xxx.10 I think it would make more sense to get rid of the nickel at the same time. Right now with cents, things are rounded to the nearist 100th of a dollar. Getting rid of nickels wound mean they would get rounded to the nearist 10 of a dollar. Keeping the nickel means rounding to the nearest 20th which seems silly.
They're 94% steel and only have copper plating
http://en.wikipedia.org/wiki/Penny_(Canadian_coin)#Composition_throughout_history
Pennies are planned to remain in circulation but just not minted new. Effectively they will be lost, wear out, or redeemed (at banks) beyond circulation. Kinda just go away thru attrition. ALso saves the cost of a redemtion effort.
Separately the fact that they cost 1.5 cents to make is not a valid reason if they are only worth 1 cent. How many of the things do you own that cost more than they are worth? Almost everything? The issue is the convenience and the value of usage not the face value. If it costs 1.5 cents and is worth 1 cent but lasts 10 years it really has a cost of .15 cents a year. Lets look at a paper bill. Bills typically last 6 months in circulation. If a 5 dollar bill costs 10 cents to print it has a cost of 20 cents a year.
So two denominations with .15 cost and 20 cent cost. Logically the face value is a secondary issue outside of the usage value. Correct? Emotionally one would think the 5 dollar bill is a better value to print. Not necessarily true.
Next thought. if items are only rounded up or re-prices to 5 cent increments did we just witness 4% inflation?
If they are rounded up and down based on the .01- .04 and the .06 - .09 concept then if I have pennies will the vendor take them? and for the original amount? not the rounded one?
Will hourly wages be rounded to the 5 cent mark and not be fixed at some one cent .01 point? The average person works 2000 hours a year and .04 cents an hour is $80. I don't work hourly but would gladly accept $80 more a year.
I could go on but I won't. I am sure some of you would wish I don't either. But think of all the items that could be affected. Some feel that pennies are an issue but I like them. I have pennies that are over 100 years old.
