Published: Thursday, June 16 2011 9:00 a.m. MDT
Ron England should have sold his 1,000,000 pennies to the U.S. Mint. Since it
would cost them $10,700 to make a million pennies, it should have been willing
to pay him at least $10,000 for them.
With inflation making the penny worthless and the system converting more and
more to the plastic and digital- pennies have become obsolete and too costly.
Definitely time, we just need to commit another coin for Lincoln (to appease
Illinois) and then drop the thing.
What all of you are missing is that today's market does indeed use the concept
of "cents" and using nickels or dimes would indeed have dire effects.
Have you ever wondered why gasoline is priced at
"whatever-point nine cents"? It's because of "taxes" by the
state and feds; one is .5 cents and the other is .4 cents so it equates to .9
cents and isn't thought of being a full cent, so it's more acceptable. In $100
worth of fuel, there's precious little difference in quantity or cost. So give
the Government (state and federal) their due, they messed this up years ago.
But what do you think would be the effect in marketing products if
stating something cost $100 as opposed to $99.99? Face it, we all love to think
we're saving big bucks when it's just a penny. Look at electronic gadgets, car
prices, clothing, etc and this practice of using 9's is universal. And if you
use the USPS very often a few cents difference on postage adds up in a hurry.So be careful what you wish for; better to have one upset guy pay with
pennies than to eliminate them altogether.
Time to live in fives and zeros at the end of a price. Makes it much easier to
count. This also means that communities across the nation will have to change
their taxes to reflect the no cents matter.
I agree, pennies are too impractical to have any real value for individuals,
which is why the banking industry will never let us get rid of them.
With respect to Mr. England, saving a "million pennies" on a bet, or
for whatever reason, is a bit eccentric and the monetary system used by millions
of persons every day is not designed to accomodate eccentric behavior. That
type of behavior is its own reward, as recently observed in the Vernal
incident.Businesses who use the US mail thousands of times a month
will suffer by the elimination of cents (pennies), whether you're talking about
letters, packages, etc as rates would increase, not drop.Does anyone
seriously think that taxing entities won't "round up" the tax bill?
Just look at the amount of sales tax you pay and see how many times it equals 5
or 10 cents at the end (total) and decided how much more you'll be paying.
Intsead of a 99 cent item, with a 7% sales tax being $1.06, it would change to
$1 plus 10 cents, and you'd pay $1.10. One purchase a month, no big deal; but
what about all the purchases over a year's time.....?Use pennies the
way thay were intended to be used and it works.
correction repostSorry to burst the bubble you live inside Jay
Evensen, Deseret News, you may have some DNA in you off of Ron Paul, wanting to
just get back to Utah making its own money, and start up the gold and silver
standard, but I strongly disagree with you on this one, NOT only will it by
eliminating the penny would drive up prices. Merchants would simply round up the
cost of items. It distroys everything America is all about. NEVER get rid of
them. Get rid of the people that want to.
It does seem ridiculous to spend 1.7 cents to manufacture a penny. More and
more, pennies do appear to be a throwaway coin--whether in a fountain, on a
convenience store counter or whatever. Perhaps the Mint should go
one or two years without making any new pennies and see if we miss them. There
are always plenty/too many in circulation.
It will never happen. Our monetary system is based upon a decimal system of
one-one hundredth of a dollar (aka 100 cents to the dollar). As long as that
monetary baseline exists, the penny is here to stay regardless of how much it
costs to mint the penny.
The penny should be eliminated and we should move to $1 coins. Eliminating the
penny would in no way alter current pricing strategies. Fuel is already priced
at intervals smaller than a penny, and that practice would continue. Stores
could not establish pricing strategies that would overcome a simple requirement
of providing change to the nearest nickle. Any attempt to do so would be negated
by multiple items purchased and the addition of sales tax. As far as the dollar
goes, a quick internet search will show the anticipated savings by reprinting
paper dollars, and the logic becomes vividly clear. Give up pennies and paper
dollars America, Australia did it decades ago with no problems, and we can too.
I have a 3 foot high plastic coke bottle (piggy bank) filled to the brim with
nothing but pennies. It took over 20 years to fill up and weighs about 80
pounds. Anyone have a clue how many pennies that is? Because I have no idea. As
for cashing them in, I think it makes a much better decorative piece.
Let's just eliminate all coins... everything costs an even dollar amount. No
$0.99 or $1.50. No more making change from the register and no need for a coin
purse or coin pocket. No coins lost in the couch. It's a stupid
idea.. even for the penny. I vote to keep it!
toosmartforyou, you have not convinced me. For one, not every item would have
to be rounded to the nearest five cents. Just the total. If this seems
strange, we should remember your own example, gasoline. It is always priced at
tenths of a penny, but no one ever pays a fraction of a cent. Also, sales taxes
are rounded every day, from the total. Rounding total transactions to the
nearset nickel would not upset our economy, nor change any individuals's budget,
I am sure. Also note: depending on how the law is ultimately written,
elimination of the penny would only affect CASH transactions. What percent of
our transactions are made with cash these days?On the flip side, I
think too much is made of the cost of making a penny. Each penny is used in
thousands of transactions (I'm guessing). So it's productuon cost should be
weighed against it's functional value, not just material value. I just think
the functional value is not just nil, but negative.
Get rid of the penny, but don't change prices.Pay by credit card or check,
and you can pay to the cent.Pay by cash, and when the total is computed,
round up/down.Don't round up every line item, just the total.No need to change any prices.
I don't want to see prices climb if we eliminate the penny. Retailers won't
round $.99 down to $.90, they'll round up to $100. This would be bad for all of
us.How did cash only gasoline work years ago? The $.009 value
leaves some sort of remainder, did they round up or down to get to the nearest
cent? I'm sure the practice still continues since my debit card only works on
full cent amounts.
@Naruto - Instead of cashing in those pennies, you'd probably get more money if
you took them to a metal recycling center. Granted the recycling center probably
wouldn't take them since melting them down would be considered a felony, but my
guess is that if it were legal, they'd pay you more for it than the bank.European countries dealt with similar issues to this for years before
the Euro was adopted. In Italy, when they used the Lira, they had small coins
like the 30 Lire, and the 50 Lire coins. But you would still get register totals
of like 2310 Lire, but they would usually just round down or up if it was closer
to the next increment for which they actually had a coin. I think we could loose
the penny with minimal impact to the economy. I know $99.99 sounds better, but
realistically consumers understand the difference.
I noticed that in Europe the price is still in cents, even though the value of
the smallest coin is 5 cents. At the end of the transaction, the amount is
correctly rounded to the nearest multiple of 5 cents. Problem solved and nobody
has to bother with cents any more.
I do disagree with several of the posters here and also think we should get rid
of the penny. While stationed in Berlin in the early 1990's, the
Base Exchange/Post Exchange shopping centers and all other vendors--including
the fast food vendors--did not allow the use of pennies in financial
transactions. It was wonderful. It was always easier to find a
nickel or a dime needed in your pocket when paying cash for a soda at the
shopette. And, it didn't really effect the price of goods all that much. The
$9.99 item wasn't rounded up to $10--it was listed at $9.95.The U.S.
should retire the penny.
Having no pennies is simple in practice. I lived in Australia and
it is extremely easy to adjust to it. All prices are still down to the cent and
the final purchase price is given as normal. The only difference is, you get a
nickel or nothing in change.It takes about 10 seconds to get the
concept down and live with it.It's simply absurd to assume (as VST
does) that we would give up the entire decimal system of money simply because we
eliminate one coin.Just my $0.02 (which would be $0.00 in change if
we get rid of that little nuisance of a coin!)
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