Since we don't have any coin denominations smaller than 5c...
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mrSHEiK124
Lifer
- Mar 6, 2004
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mugs
Lifer
- Apr 29, 2003
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How does it work down there? Are prices down to the cent but rounded at the end of the transaction? In the end it should even out. One study of convenience store transactions showd that consumers would come out ahead by 1/40th of a cent per transaction. Negligible.
Any American who doesn't support abolishing the penny (and hell, why not the nickel while we're at it) is a ****** idiot.
Any American who doesn't support abolishing the penny (and hell, why not the nickel while we're at it) is a ****** idiot.
I closed out an account today and there was .04 cents of interest in there. I took em but only to spite the bank mouhahahahaha
Originally posted by: mugs
Way to stick it to them by taking your own money.
well I sure as sh!t wasnt leaven it there. I did consider throwing them at a child I passed while walking out. but I realized it wasnt his fault the bank sucks. so I went to a hotdog place with a friend and drowned my sorrows in chilly dogs.
Prices are rounded off to the nearest 5 cents. But we rarely price things with non-divisible-by-five prices. More often than not, you'd see something at $9.95 instead of $9.99.
Besides, theres a reason for not making a single-cent coin. The metal and costs required to create the coin exceed the value of the coin itself. So people would just start melting down single-cent coins and selling the scrap metal. I don't know if this happens in the USA, though (since your currency is worth more than ours. 1 Aussie dollar is ~0.75 US dollars).
Besides, theres a reason for not making a single-cent coin. The metal and costs required to create the coin exceed the value of the coin itself. So people would just start melting down single-cent coins and selling the scrap metal. I don't know if this happens in the USA, though (since your currency is worth more than ours. 1 Aussie dollar is ~0.75 US dollars).
whats gonna happen to $X.99 then?!?!?! It will turn into $X.90 and we will all surely go bankrupt from it!!!
mugs
Lifer
- Apr 29, 2003
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Right now (in the USA) the cost of the metal is barely below the face value of a penny. But add in the cost of production and it costs about 1.5 cents to make a penny. Plus the distrobution costs (those things are HEAVY). The value of the metal would have to be quite a bit more than the face value of the coin to make it worthwhile to extract the metals.
SagaLore
Elite Member
- Dec 18, 2001
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Oh yea, good point. Then the dime will use the nickel dimensions.
Keep in mind - as soon as you drop the lowest increment, the price of MOST low-price items will inflate. If something costs 1.99, retailers are not going to drop it to 1.95, or they would lose 4 cents on every purchase when the profit margins are already low. So it would inevitably become 2.00 even.
The problem with rounding a 99-cent item to a whole dollar is that studies have proven that consumers actually think they're saving money by paying $9.99, versus $10 (or similar comparison). It's silly, yes, but it's true.
Another thing to think of, those of you that wish to banish not only the penny but the nickel as well......
What about sales tax? Are you willing to pay 10%, if your sales tax is already above 5%?? Cuz I'm here to tell ya, no community or state is going to voluntarily drop their sales tax revenue in order to satisfy your longing to have everything in increments of 10-cent pieces! Instead, expect to have a lower amount of money in your pocket at the end of each month, since they'll simply do as you wish, and round tax off to 10-cent increments. While it wouldn't bother me horribly, as I already pay 8.25% sales tax, I'm guessing those people that are currently paying 6 or 7 percent won't find your plan very nice to have around!
Don't be too surprised, either, if it doesn't work in your favor when you ask for your next raise. Let's say you're offered a raise that would put you in the lower half of that 10-cent increment. Oh well, you won't mind making a few cents LESS an hour, will you, so we can round it off to the lower increment? I'm sure the next time it'll work out to your advantage!
To tell the truth, I like what the Aussies did. Drop the 1-cent piece, bring about a 2-cent piece, and round everything to that. Unless zinc commodity prices go waaaaay up, it should keep the 2-cent piece under that value for a while, and old Honest Abe will then be worth twice as much as he was before. Add to that a clause that people that have been hoarding pennies in pickle jars (for whatever reason) have X amount of time to turn them in for face value.......and that after that date, they'll only be worth 1/2 that value, and you'll see a LOT of those old pennies get turned in fast!!
Another thing to think of, those of you that wish to banish not only the penny but the nickel as well......
What about sales tax? Are you willing to pay 10%, if your sales tax is already above 5%?? Cuz I'm here to tell ya, no community or state is going to voluntarily drop their sales tax revenue in order to satisfy your longing to have everything in increments of 10-cent pieces! Instead, expect to have a lower amount of money in your pocket at the end of each month, since they'll simply do as you wish, and round tax off to 10-cent increments. While it wouldn't bother me horribly, as I already pay 8.25% sales tax, I'm guessing those people that are currently paying 6 or 7 percent won't find your plan very nice to have around!
Don't be too surprised, either, if it doesn't work in your favor when you ask for your next raise. Let's say you're offered a raise that would put you in the lower half of that 10-cent increment. Oh well, you won't mind making a few cents LESS an hour, will you, so we can round it off to the lower increment? I'm sure the next time it'll work out to your advantage!
To tell the truth, I like what the Aussies did. Drop the 1-cent piece, bring about a 2-cent piece, and round everything to that. Unless zinc commodity prices go waaaaay up, it should keep the 2-cent piece under that value for a while, and old Honest Abe will then be worth twice as much as he was before. Add to that a clause that people that have been hoarding pennies in pickle jars (for whatever reason) have X amount of time to turn them in for face value.......and that after that date, they'll only be worth 1/2 that value, and you'll see a LOT of those old pennies get turned in fast!!
mugs
Lifer
- Apr 29, 2003
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Rounding occurs at the end of the transaction. Prices could still be x.99. No problem.
Which is a great idea considering they cost more than 5 cents to produce.
Rounding would occur at the end of the transaction, after sales tax. Sales tax rates could stay the same.
Electronic or check transactions could still be completed to the nearest cent. You don't need pennies to write a check.
To tell the truth, I like what the Aussies did. Drop the 1-cent piece, bring about a 2-cent piece, and round everything to that. Unless zinc commodity prices go waaaaay up, it should keep the 2-cent piece under that value for a while, and old Honest Abe will then be worth twice as much as he was before. Add to that a clause that people that have been hoarding pennies in pickle jars (for whatever reason) have X amount of time to turn them in for face value.......and that after that date, they'll only be worth 1/2 that value, and you'll see a LOT of those old pennies get turned in fast!!
Just delaying the inevitable.
People who are much smarter than you and I have thought this through pretty well. About the only things keeping the penny alive are resistance to change and the damned powerful Zinc lobby.
hell, in israel they ablished the equivalent. ofcourse the equivalent is worth much less then a penny, but it's the same idea. it works fine.
apparently another 2 reasons why the penny isnt abolished is due to the minining lobbies using their metals and charities using penny drives to raise revenue.
SagaLore
Elite Member
- Dec 18, 2001
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Pointless.
A hundred years from now, people will be debating if we should remove the last sub-dollar amount, the "fifty cent". Why have anything less than $1?
Instead of dropping coins, lets drop a zero from our economic table, across the board. Something normally worth $100 will be $10. Your $40,000 salary is now $4,000. Your 99 cent pack of gum is now a dime.
Zenmervolt
Elite member
- Oct 22, 2000
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If they get rid of the nickel, I won't have anything that fits the battery compartment on my cameras.
ZV
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