Get rid of the penny (one-cent coin)?

[Mixolydian]

It costs more to manufacture a penny than it's worth (2 cents as of 2012). So why don't we get rid of the penny? What can you buy with a penny anyways? I think it would make sense to discontinue it. What do you think?

 

[Mixolydian]

To add a little more info:
The loss in profitability due to producing the one cent coin in the United States for the year of 2012 was $58,000,000. This was a slight decrease from 2011, the year before, which had a production loss of $60,200,000.

 

[stormkroe]

It's gone in Canadia. I've wondered how long it will take business to 'err' on the side of rounding up. Think about how much more money a company like wal-mart could make by rounding up 2 cents on EVERY purchase.

 

[Whiskey16]

It's gone in Canadia. I've wondered how long it will take business to 'err' on the side of rounding up. Think about how much more money a company like wal-mart could make by rounding up 2 cents on EVERY purchase.

Incorrect. Rounding is only permissible for the exchange of CASH transactions.

For cash transactions, rounding to the nearest nickel may be at receipt of the total bill, refund, or change after total taxes have been considered upon the purchase price to the nearest one cent.

In Canada, the 'penny' remains as a single cent division for ALL OTHER transactions and calculations.

Just a dwindling exchange of physical pennies to be had since the Royal Canadian Mint ended their distribution on Feb 4, 2013.

 

[stormkroe]

Incorrect. Rounding is only permissible for the exchange of CASH transactions.

For cash transactions, rounding to the nearest nickel may be at receipt of the total bill, refund, or change after total taxes have been considered upon the purchase price to the nearest one cent.

In Canada, the 'penny' remains as a single cent division for ALL OTHER transactions and calculations.

Just a dwindling exchange of physical pennies to be had since the Royal Canadian Mint ended their distribution on Feb 4, 2013.

I should have said every 'single' purchase. There's nothing keeping a company from landing popular single-item purchases (double double anyone?) in the 'round up' area.

Also, almost every restaurant in my area has notices posted about the change, and are honoring the rounding rule. Of course, they'll still take your pennies too, but for all purposes you can live your life penny-free here already.

 

[randomrogue]

The Nickel is worth less than the metal it's made out of as well. They actually had to pass a law making it illegal to melt both of them down. I remember discussing buying as many nickels as possible and making a killing since there was a brief period of time where you could double your money.

 

[DaTT]

The grocery store near me (In Canada) states it will ALWAYS round down.

 

[highland145]

The grocery store near me (In Canada) states it will ALWAYS round down.

After it rounded up .05?

 

[Charles Kozierok]

The Nickel is worth less than the metal it's made out of as well. They actually had to pass a law making it illegal to melt both of them down. I remember discussing buying as many nickels as possible and making a killing since there was a brief period of time where you could double your money.

I often think about how cool it would have been to be an adult in the 1960s... I would have hoarded those silver dimes and quarters like they were going out of style. As a kid I would occasionally still find one, but not in years.

People who did that made a killing, even before silver's relatively recent rise into the double digits.

And of course, for those who don't know, pennies haven't been made of copper for years... they are zinc with copper plating, IIRC.

 

[Pray To Jesus]

Might as well get rid of the nickle. More convenient.

 

[Whiskey16]

I should have said every 'single' purchase. There's nothing keeping a company from landing popular single-item purchases (double double anyone?) in the 'round up' area.

Still incorrect as you still fail to distinguish the rounding is only for cash purchases and only for the total transaction bill.

Any store may set a sale price as they wish -- round to the nearest dollar or what-ever. That is a separate issue from the ending of a one cent coin and has always been. I will repeat, that the rounding at the till is only to be done after taxes have been considered upon the sale price, and then the rounding only permissible for cash transactions upon total transaction (sale price + taxes).

 

[CrackRabbit]

Still incorrect as you still fail to distinguish the rounding is only for cash purchases and only for the total transaction bill.

Any store may set a sale price as they wish -- round to the nearest dollar or what-ever. That is a separate issue from the ending of a one cent coin and has always been. I will repeat, that the rounding at the till is only to be done after taxes have been considered upon the sale price, and then the rounding only permissible for cash transactions upon total transaction (sale price + taxes).

The solution to this is to institute what in the industry I work in is known as "breakage".
Basically dollar amounts have to be rounded in a specified direction to a nickel or dime depending on the state, the left over pennies and sub-penny amounts are accounted for and stored and eventually go to the state or the selling entity depending on what the state's rules or laws are.
It shouldn't be hard to do with modern POS systems, but it would take a bit of software magic to make it all work in an environment where breaking amounts that way hasn't been the norm.

 

[randomrogue]

You've seen the movie Office Space right?

 

[DaveSimmons]

Since this only applies to cash purchases not debit and credit cards, I'm in favor of it.

I make almost no cash purchases, and when I do I don't really want the change to deal with anyway. When Wendy's had the adoption charity collection I'd just toss the change in there.