Is it time to ditch the penny?

[dnoblett]

Our neighbor to the north has stopped producing pennies.

 

Is it time to ditch the penny? The US penny costs 2.4 cents to produce and distribute. And there were 4.3 billion minted lasted year. Would you miss it?

 

http://news.bbcimg.co.uk/media/images/61325000/gif/_61325576_pennies_heaven464x519.gif

 

Interesting thought, and has been kicked around for some time now, I know many people seem to have jars full of them because they do not know how to spend them, I rarely have them for long, because I actually spend them, get a bill for $2.27, fish in pocket, pay $5.02 to cashier and get 2.75 back, or if have no pennies then will get 3 in change to use on the next transaction.

 

If the penny goes, then transactions would need to be rounded up or down to the nearest nickel, a little complex for something like a gas pump though. And one thing I know is the nickel is much less common in my pocket.

 

Here is a full article at the BBC: http://www.bbc.co.uk/news/magazine-18586854

[DennisLeiqin]

A penny doesn't buy much or anything in the US anymore. Watched some TV show recently that said how it cost more to make a penny than a penny is intrinsically worth.

 

Yet, those pennys are valuable to many in the world. I remember my first trip to China, I paid one Yuan for a pedal cab. The Yuan was worth the equivalent of 12-1/2 cents back then. Made me think how that 1/2cent was probably important to my 'driver'.

 

We have coin offerings at our church. Those coins are collected and given to World Visions who uses the money to feed those displaced by the Haiti earthquake. $100 will feed 2000 meals.

Edited July 4, 2012 by DennisLeiqin (see edit history)

[yemmie]

Interesting. It costs more to make than they are worth, but what will happen if we do away with them? Right now, if a business wants, it can raise or lower prices by a penny. If you do away with it, every price increase will be at least 5 cents.

[warpedbored]

They are getting to be electronic pennies more and more every day anyway since people use their debit cards more than cash. I say keep them.

[Argyle]

According to Snopes.com, it costs 2.41 cents to produce one penny in 2012. There's a pretty good article about the penny there, and they actually make a compelling argument for keeping it in production.

http://www.snopes.com/business/money/pennycost.asp

 

I vote to keep the penny circulating too!

 

Best Wishes

[david_dawei]

I would do away with the penny and nickel.... about 20 years ago. The US lacks innovative and practical thinking when it comes to issues like this. Canada also stopped doing K1 visas...

 

I have noticed some stores won't take a penny... just round it down to stop the nonsense.

[ama537621]

I vote get rid of the penny. Round up every transaction to the nickel and use the rounded up pennies to pay down the national debt.

[NickF]

I would do away with the penny and nickel.... about 20 years ago. The US lacks innovative and practical thinking when it comes to issues like this. Canada also stopped doing K1 visas...

 

I have noticed some stores won't take a penny... just round it down to stop the nonsense.

 

I've noticed here that they round it up. And things like sales taxes will increase as well if we eliminate it.

[dnoblett]

I vote get rid of the penny. Round up every transaction to the nickel and use the rounded up pennies to pay down the national debt.

Actually 3/2 rounding, if total results in 1 or 2 cents round down to nearest nickle, if 3 or 4 cents round up, this is how sales tax is calculated is called 5/4 rounding.

[Randy W]

Another thing to consider - what China did. They've virtually eliminated coins, and have paper currency for 0.10¥ and up. I don't see coins any more.

 

On the other hand, on my last trip to the U.S., I never had any currency at all - just used credit cards for everything.

[Yuanyang]

As a 'inactive' coin collector I say get rid of the penny now. Nickle in 5 years.

[david_dawei]

Another thing to consider - what China did. They've virtually eliminated coins, and have paper currency for 0.10¥ and up.

Yes, I've seen many a taxi driver cringe at the sight of a coin and just refuse them.